Question & AnswerQ&A (IRR OF Republic Act No. 10667)
The rules and regulations are referred to as the Implementing Rules and Regulations of Republic Act No. 10667 (Rules).
These Rules apply to any entity engaged in trade, industry, or commerce in the Philippines or international trade that has direct, substantial, and reasonably foreseeable effects in the Philippines, including acts done outside the territory of the Philippines.
Agreements that restrict competition as to price, or components thereof, or other terms of trade, and agreements fixing prices at auctions or bidding, including cover bidding, bid suppression, bid rotation, and market allocation are per se prohibited.
Control refers to the ability to substantially influence or direct the actions or decisions of an entity, whether by contract, agency, or otherwise. It can be presumed by owning more than half of voting power or by other means such as agreements, appointment powers, or decisive influence.
Notification is required when the aggregate annual gross revenues or value of assets of the ultimate parent entity exceeds One Billion Pesos, and the value of the transaction exceeds One Billion Pesos, subject to detailed asset and revenue tests depending on the nature and location of the assets or interests acquired.
A transaction that meets the thresholds and does not comply with notification and waiting period requirements shall be considered void and subject to an administrative fine of one percent to five percent of the value of the transaction.
Dominant position is a position of economic strength held by an entity or entities that allow it to control the relevant market independently from competitors, customers, suppliers, or consumers.
The parties seeking exemption must prove that the concentration likely brings about gains in efficiencies greater than the limitations on competition or that the merger represents the least anti-competitive arrangement due to financial failure of a party.
Information considered trade secrets or confidential shall not be disclosed unless necessary for enforcement, with specific procedures for requesting confidential treatment and providing non-confidential versions, subject to Commission review.
Examples include selling goods below cost to drive out competitors, imposing barriers to entry, unfair price discrimination, conditioning transactions on unrelated obligations, imposing unfair purchase or selling prices, and limiting production or markets to the prejudice of consumers.