OECD kpcdb

1. Scope

Section 14 of the PCA makes a distinction between three types of anti-competitive agreements.

 

Type (a) agreements are per se prohibited agreements, between or among competitors, that:

 

1. Restrict competition as to price, or components thereof, or other terms of trade; or
2. Fix prices at an auction or in any form of bidding including cover bidding, bid suppression, bid rotation, and market allocation, and other analogous practices of bid manipulation.

 

Type (b) agreements are agreements, between or among competitors, which have the object or effect of substantially preventing, restricting or lessening competition, that:

 

1. Set, limit, or control production, markets, technical development or investment; or
2. Divide or share the market, whether by volume of sales or purchases, territory, type of goods or services, buyers or sellers, or any other means.

 

Type (c) agreements are those other than Types (a) and (b), which have the object or effect of substantially preventing, restricting or lessening competition.

2. Assessment

Agreements not falling under Types (a) and (b) that contribute to improving the production or distribution of goods and services, or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefits, may not necessarily be deemed as a violation of the PCA.

 

No guidelines on how the PCC will assess these have so far been issued.

3. Remedies and Sanctions

Under Sections 12(d) and 29 of the PCA, any entity found to have violated Section 14 is subject to remedies and administrative fines. (See Section I.4 of this text on Remedies and Sanctions.)

 

Under Section 30, an entity that enters into the Type (a) or Type (b) agreements is subject to criminal sanctions of imprisonment from 2 to 7 years, and a fine of between PHP50 million to PHP250 million. Under Section 30 of the PCA and Section 6.21 of the Rules, imprisonment shall be imposed upon the entity’s responsible officers, directors, or partners. Where the entity involved is a juridical person, imprisonment shall be imposed on its officers, directors, partners, or employees holding managerial positions who are knowingly and wilfully responsible for such violation.  

4. Leniency

Section 35 stipulates that the PCC shall develop a leniency programme that would grant an entity immunity from suit or a reduction of any fines that would otherwise be imposed thereon for participating in any Type (a) or Type (b) agreements, in exchange for the voluntary disclosure of information regarding such an agreement prior to, or during, the Preliminary Inquiry of the case. Such a programme would be expected in 2018.

 

Subject to certain conditions, an entity may be granted leniency whether it reports the anti-competitive activity prior to or during Preliminary Inquiry and whether the PCC has received prior information about the illegal activity.

 

 

* This information is based on Competition Law in Asia-Pacific: A Guide to Selected Jurisdictions (2018).