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WorksheetsPhilippine Competition Act Quiz
Total questions: 70
Worksheet time: 35mins
Which of the following scenarios is EXPLICITLY excluded from the scope and application of the Philippine Competition Act (PCA)?
Agreements between a parent company and its subsidiary.
Combinations or activities of workers designed solely to facilitate collective bargaining.
Trade associations organized to promote quality standards.
International trade having direct effects on the Philippine market.
Under Section 4, "Control" is presumed to exist when a parent owns, directly or indirectly, more than what portion of the voting power of an entity?
One-third (1/3)
One-half (1/2)
Two-thirds (2/3)
Fifty-one percent (51%)
In defining the "Relevant Product Market," the Commission considers goods or services that are interchangeable or substitutable based on all the following factors EXCEPT:
Characteristics
Prices
Intended use
Cost of production
The PCA applies to international trade only if it meets which of the following criteria regarding its effects on commerce in the Philippines?
Direct, substantial, and reasonably foreseeable.
Indirect, incidental, and potential.
Direct, immediate, and quantifiable.
Substantial, irreversible, and malicious.
Regarding the composition of the Philippine Competition Commission (PCC), which of the following statements is FALSE?
The Chairperson and Commissioners are appointed by the President.
At least one member must be a member of the Philippine Bar with 10 years of practice.
At least one member must be an economist.
The Commissioners serve a term of five (5) years with one possible reappointment.
Following the cessation of their office, for how long are Commissioners prohibited from appearing as counsel on matters pending before the Commission?
One (1) year
Two (2) years
Three (3) years
Five (5) years
When issuing adjustment or divestiture orders (structural remedies), the Commission may only impose them under which condition?
When the entity has a market share exceeding 60%.
When there is no equally effective behavioral remedy, or such remedy is more burdensome.
When the entity has previously violated the Act three times.
When the Department of Justice explicitly recommends divestiture.
Which court is authorized to issue a temporary restraining order (TRO) or preliminary injunction against the PCC in the exercise of its duties?
Only the Supreme Court.
Only the Court of Appeals and the Supreme Court.
The Regional Trial Court where the respondent resides.
The Court of Tax Appeals.
In the enforcement hierarchy, which agency has the sole and exclusive authority to conduct the *preliminary investigation* and undertake the *prosecution* of criminal offenses under the PCA?
The Philippine Competition Commission (PCC)
The Office of the Solicitor General (OSG)
The DOJ-Office for Competition (DOJ-OFC)
The National Bureau of Investigation (NBI)
How many members of the Commission constitute a quorum necessary for the adoption of a ruling or order?
Two (2)
Three (3)
Four (4)
Five (5)
Which of the following agreements between competitors is considered a *per se* violation of the PCA?
Agreements limiting technical development.
Agreements dividing the market by territory.
Agreements restricting competition as to price or components thereof.
Agreements setting production limits.
Under the "Single Economic Entity Doctrine" recognized in the PCA, entities are NOT considered competitors if:
They belong to the same trade association.
They have a temporary joint venture for a specific project.
One controls the other, they have common economic interests, and cannot act independently.
They share the same legal counsel.
Which of the following acts is NOT listed as a *per se* violation under Section 14(a) but is prohibited under Section 14(b) if it substantially lessens competition?
Cover bidding
Bid rotation
Market allocation/dividing the market
Price fixing at an auction
What is the standard of review for vertical restraints (e.g., Resale Price Maintenance) under the PCA framework described in the syllabus?
Per se illegal
Rule of Reason (Substantial Lessening of Competition)
Per se legal
Strict Liability
Agreements that contribute to improving production or distribution while allowing consumers a fair share of benefits are known as:
The Failing Firm Defense
The Efficiency Defense
The De Minimis Exemption
The Sovereign Immunity Doctrine
Bid suppression is a form of:
Abuse of Dominant Position
Vertical Restraint
Anti-Competitive Merger
Anti-Competitive Agreement (Per Se)
Section 14(b) prohibits agreements that have the "object or effect" of substantially lessening competition. Which of the following is specifically listed in this section?
Limiting technical development or investment.
Selling goods below cost.
Tying and bundling.
Price discrimination.
Regarding the "Rule of Reason" analysis, Section 26 requires the Commission to balance anti-competitive impact against:
The profitability of the entities involved.
The tax revenue generated by the agreement.
Actual or potential efficiency gains.
The political stability of the region.
Under Section 27, there is a rebuttable presumption of market dominant position if an entity's market share is at least:
35%
40%
50%
60%
It is NOT a violation of the Act to acquire or maintain a dominant position through "legitimate means." Which of the following is NOT explicitly cited as a legitimate mean in Section 27?
Superior skills
Business acumen
Enjoyment of intellectual property rights
Aggressive lobbying efforts
Section 15(g) specifically protects marginalized agricultural producers and MSMEs from which type of abuse?
Predatory selling prices
Discriminatory advertising
Imposition of unfairly low *purchase* prices (Monopsony power)
Refusal to supply
To prove Predatory Pricing under Section 15(a), the Commission must establish that the selling of goods below cost was done with the *object* of:
Reducing inventory surplus.
Driving competition out of the relevant market.
Introducing a new product line.
Matching a competitor's promotion.
Which of the following is a valid statutory defense for price differentials (price discrimination) under Section 15(d)?
The buyer is a relative of the seller.
Socialized pricing for the less fortunate sector.
The seller is trying to increase their stock price.
The buyer agreed to an exclusivity contract.
"Making a transaction subject to acceptance by the other parties of other obligations which have no connection with the transaction" is essentially a definition of:
Tying and Bundling
Predatory Pricing
Market Allocation
Bid Rotation
If an entity develops barriers to entry resulting from a "superior product or process," is this considered an abuse of dominant position?
Yes, if it prevents competitors from growing.
Yes, if the market share exceeds 50%.
No, this is an explicit exception under Section 15(b).
No, but they must pay a fine for market concentration.
In the PCC's first abuse of dominance case (Urban Deca Homes), the foreclosure effect was caused by:
Predatory pricing on housing units.
An exclusive dealing contract with a single Internet Service Provider (ISP).
Refusal to supply cement to rival developers.
Tying housing loans with life insurance.
Abuse of dominant position cases generally utilize which analytical standard?
Per se prohibition
Substantial Lessening of Competition (SLC)
Strict Liability
Intent-only analysis
According to the updated thresholds effective March 1, 2025 (as noted in the Syllabus), compulsory notification is required if the Size of Party (SOP) exceeds:
PHP 6.0 Billion
PHP 7.8 Billion
PHP 8.5 Billion
PHP 50 Billion
An M&A agreement consummated in violation of the notification requirement is:
Voidable at the option of the Commission.
Valid but subject to a fine.
Considered void.
Valid once the fine is paid.
The administrative fine for failure to notify the Commission of a compulsory M&A transaction is:
Fixed at PHP 1,000,000.
1% to 5% of the value of the transaction.
10% of the entity's global revenue.
PHP 50,000 per day of non-compliance.
If the Commission requests further information during an M&A review, the period within which the agreement may not be consummated is extended by how many days?
30 days
45 days
60 days
90 days
What happens if the Commission fails to promulgate a decision on an M&A notification within the prescribed periods?
The merger is deemed denied.
The merger is deemed approved.
The parties must re-file the notification.
The case is automatically elevated to the Court of Appeals.
Under Section 21, a merger prohibited under Section 20 may be exempt if the parties establish the "Failing Firm Defense." This requires proving that:
A. The firm has lost money for 3 consecutive years.
B. The agreement is the least anti-competitive arrangement among known alternatives for the failing entity's assets.
C. The acquiring firm promises to retain all employees.
D. The government refuses to bail out the company.
Who bears the burden of proof when seeking an exemption from prohibited mergers under Section 21?
A. The Commission
B. The parties seeking the exemption
C. The consumers
D. The sector regulator
A favorable recommendation regarding a merger from a governmental agency with a competition mandate (e.g., Bangko Sentral ng Pilipinas for banks) results in:
A. An automatic approval by the PCC.
B. A disputable presumption that the merger is not violative of the Act.
C. An exemption from notification requirements.
D. A waiver of all administrative fees.
Structural remedies (divestiture) for M&A are generally reserved for:
A. First-time offenders.
B. Situations where there is a substantial risk of lasting infringement deriving from the enterprise's structure.
C. Transactions valued under PHP 1 Billion.
D. Conglomerate mergers only.
Violations of Section 14(a) (Per Se / Cartels) carry a criminal penalty of imprisonment for:
A. 6 months to 1 year.
B. 2 to 7 years.
C. 10 to 20 years.
D. Life imprisonment.
If a violation involves the trade or movement of "basic necessities and prime commodities," the fine imposed shall be:
A. Doubled
B. Tripled
C. Quadrupled
D. Unchanged
Who is subject to the penalty of imprisonment for criminal violations committed by a juridical entity?
A. The shareholders.
B. The external legal counsel.
C. Officers, directors, or managerial employees knowingly and willfully responsible.
D. The entire Board of Directors regardless of knowledge.
Under Section 29, the Commission must increase the schedule of administrative fines every:
A. Two (2) years.
B. Three (3) years.
C. Five (5) years.
D. Ten (10) years.
An entity that fails to comply with a binding ruling or order of the Commission faces a daily penalty starting from:
A. The day the order was issued.
B. The 15th day after receipt of the order.
C. The 45th day after receipt of the order.
D. The 90th day after receipt of the order.
Immunity from suit under the Leniency Program is available to an entity that reports illegal activity before a preliminary inquiry has begun, provided that:
A. The entity was the leader/originator of the activity.
B. The entity coerced others to join.
C. The entity is the first to come forward.
D. The entity pays a distinct facilitation fee.
What is the maximum administrative fine for the "Supply of Incorrect or Misleading Information" under Section 29(c)?
A. PHP 500,000
B. PHP 1,000,000
C. PHP 2,000,000
D. PHP 5,000,000
A plea of Nolo Contendere in a criminal proceeding under the PCA:
A. Is an admission of guilt usable in civil suits.
B. Cannot be used against the defendant to prove liability in a civil suit arising from the criminal action.
C. Automatically dismisses the administrative case.
D. Is allowed at any stage of the trial, even after conviction.
The "Statute of Limitations" for commencing an action under the PCA is:
A. 2 years
B. 4 years
C. 5 years
D. 10 years
A private civil action for damages resulting from a violation of the Act may be instituted:
A. At any time the injury is discovered.
B. Only after the Commission has completed the preliminary inquiry.
C. Only after the Supreme Court has issued a final ruling.
D. Only if the PCC declines to prosecute.
Confidential business information submitted to the Commission shall not be disclosed EXCEPT when:
A. A competitor requests it for fairness.
B. The media files a Freedom of Information request.
C. The notifying entity consents, or it is mandatorily required by law/court order.
D. The Commission publishes its annual report.
Under Section 37 (Non-Adversarial Remedies), if an entity obtains a Binding Ruling that is adverse, how long does it have to abide by the ruling to avoid further action?
A. 30 days
B. 60 days
C. 90 days
D. 120 days
Evidence or admissions made by an entity during proceedings for a Binding Ruling or Consent Order:
A. Are admissible in criminal proceedings.
B. Are inadmissible in criminal proceedings arising from the same act.
C. Automatically trigger a tax audit.
D. Are public records available to all competitors.
The Commission’s "Dawn Raid" power (inspection of premises) requires:
A. A warrant from the DOJ.
B. An order from the Court.
C. Approval from the President.
D. 24-hour prior notice to the entity.
The Philippine Competition Act shall not be enforceable against an entity engaged in any trade, industry, or commerce in the Republic of the Philippines.
True
False
The Philippine Competition Act is the primary law in the Philippines to promote and protect market competition.
True
False
Control is presumed to exist when the parent owns, directly or indirectly, through subsidiaries, more than one-fourth (1/4) of the voting power of an entity.
True
False
There shall be a rebuttable presumption of market dominant position if the market share of an entity in the relevant market is at least fifty percent (50%).
True
False
Agreements between competitors that restrict competition as to price are considered per se prohibited under the PCA.
True
False
Abuse of dominant position is prohibited only if the entity is determined to be the sole provider in the relevant market.
True
False
The Philippine Competition Commission (PCC) is an attached agency of the Department of Trade and Industry (DTI).
True
False
What is the juridical entity that, directly or indirectly, controls a party to the transaction, and is not controlled by any other entity?
A. Joint Venture
B. Entity
C. Ultimate Parent Entity
D. Person
Which term refers to the market in which a particular good or service is sold and which comprises two dimensions: the relevant product market and the relevant geographic market?
A. Geographic Market
B. Product Market
C. Relevant Market
D. Sub-Market
It comprises all those goods and/or services which are regarded as interchangeable or substitutable by the consumer or the customer, by reason of the goods and/or services' characteristics, their prices, and their intended use.
A. Relevant geographic market
B. Relevant product market
C. Relevant demand market
D. Relevant supply market
A position of economic strength that an entity or entities hold which makes it capable of controlling the relevant market independently from any or a combination of the following: competitors, customers, suppliers, or consumers.
A. Monopoly
B. Market Dominance
C. Ultimate Control
D. Unfair Competition
What is the independent quasi-judicial government agency mandated to implement the national competition policy and enforce the Philippine Competition Act?
A. Department of Trade and Industry (DTI)
B. Philippine Competition Commission (PCC)
C. Securities and Exchange Commission (SEC)
D. National Economic and Development Authority (NEDA)
Which of the following agreements, between or among competitors, is per se prohibited under Section 14(a) of the Act?
A. Setting, limiting, or controlling production.
B. Dividing or sharing the market.
C. Fixing price at an auction or in any form of bidding.
D. Imposing restrictions on the sale of goods outside the territory.
Which of the following agreements, between or among competitors, is not per se prohibited but is prohibited if it has the object or effect of substantially preventing, restricting, or lessening competition?
A. Restricting competition as to price.
B. Fixing price at an auction (bid rigging).
C. Setting, limiting, or controlling markets.
D. An agreement among buyers to fix the selling price of goods.
It is an agreement by two or more competitors which sets or limits production levels and creates an artificial supply shortage, thereby raising prices.
A. Market allocation
B. Supply restriction
C. Bid rigging
D. Output sharing
Which term best describes the practice where parties participating in a tender coordinate their bids rather than submit independent proposals?
A. Price fixing
B. Market sharing
C. Bid rigging
D. Abuse of dominant position
Which act is defined as the joining of two or more entities into an existing entity or to form a new entity?
A. Acquisition
B. Joint Venture
C. Agreement
D. Merger
Which of the following is considered an abuse of dominant position?
A. Directly or indirectly imposing unfairly low purchase prices for goods or services of, among others, marginalized producers.
B. Directly or indirectly imposing or setting prices that develop in the market as a result of or due to a superior product.
C. Engaging in a legitimate innovation that leads to better products at lower costs.
D. The sale of goods by a dominant entity at a competitive price.
The following are examples of abuse of dominant position, EXCEPT:
A. Making the supply of a product or service dependent on the purchase of other products or services.
B. Imposing restrictions on the resale or supply of goods or services outside the specified territory.
C. Selling goods or services below cost with the object of driving competition out of the market.
D. Offering price differentials on the basis of a superior product or process, or differences in the cost of providing the product.
Which of the following instances is not considered an abuse of dominant position?
A. Setting prices that result from superior business acumen.
B. Predatory pricing to eliminate competition.
C. Limiting production in a market without justification.
D. Imposing discriminatory trading conditions.
