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ATTY. MICHAEL B. BONGALONTA CPA,MICB,MBA,CTT,DBA, MRIS,MRITAX

PHILIPPINE COMPETITION ACT 2023

1. What is the Philippine Competition Act? a. To enable the Philippine Competition Commission to
review mergers and acquisitions and prevent those
a. A law that promotes and protects competition in that may substantially lessen competition in the
trade and commerce in the Philippines market
b. A law that regulates the importation and exportation b. To encourage companies to merge and strengthen
of goods in the Philippines their market position
c. A law that grants exclusive rights to companies with c. To streamline the process of mergers and
dominant market power acquisitions in the Philippines
d. None of the above d. None of the above

2. When was the Philippine Competition Act signed into 7. What is the definition of an abuse of dominant
law? position?
a. 2013 a. A company that has a significant market power and
b. 2014 engages in anti-competitive behavior

c. 2015 b. A company that has exclusive rights to certain

products or services
d. 2016
c. A company that has a dominant position in an
emerging market

3. What government agency is responsible for d. None of the above

enforcing the Philippine Competition Act?

a. Department of Trade and Industry

8. What is the purpose of the Philippine Competition
b. Securities and Exchange Commission Commission?

c. Philippine Competition Commission a. To investigate and penalize companies that engage

in anti-competitive practices
d. Department of Justice
b. To promote and protect competition in the market

c. To regulate the price of commodities and services in

4. What is the purpose of the Philippine Competition the Philippines
Act?
d. None of the above
a. To promote a level playing field for all economic
actors in the Philippines

b. To create an environment that is conducive to 9. Under the Philippine Competition Act, what is the
innovation and growth percentage threshold for a merger or acquisition to be
subject to mandatory notification to the Philippine
c. To protect consumers from anti-competitive behavior Competition Commission?
of businesses
a. 10%
d. All of the above
b. 25%

c. 35%
5. What is the definition of a cartel?
d. 50%
a. A group of businesses that collude to fix prices or
output

b. A group of businesses that engage in exclusive 10. What is the definition of an anti-competitive
dealings with each other agreement?

c. A group of businesses that monopolize a certain a. An agreement between businesses that restricts
industry competition in the market

d. None of the above b. A transaction that gives exclusive rights to a certain

product or service to a specific company
6. What is the purpose of the merger control provisions
in the Philippine Competition Act? c. A legal agreement between businesses that promote
competition in the market
d. None of the above a. An agreement among competitors in a tendering or
procurement process to eliminate or reduce
competition
11. What is the definition of a dominant position? b. A practice where a company grants exclusive rights
a. A company that has a significant share of the to a certain product or service to its own subsidiaries
market c. An agreement among competitors to allocate
b. A company that has exclusive rights to certain markets or customers
products or services d. None of the above
c. A company that has been in business for a long time

d. None of the above 17. What is the purpose of the commitment

mechanism under the Philippine Competition Act?

12. What is the definition of a vulnerable market? a. To allow the Philippine Competition Commission to
settle competition allegations without formal
a. A market that is new and still emerging proceedings

b. A market that is highly competitive b. To provide companies a way out of competition

allegations without admitting wrongdoing
c. A market that is dominated by a few players
c. To provide an opportunity for companies to bargain
d. None of the above with the Philippine Competition Commission for
reduced penalties

d. All of the above

13. What is the purpose of the leniency program under
the Philippine Competition Act?

a. To encourage companies to report anti-competitive 18. What is the definition of foreclosure?

practices in exchange for immunity or reduced
penalties a. A practice where a company uses its market power
to prevent competitors from accessing essential
b. To provide financial assistance to companies in facilities or services
compliance with competition laws
b. A practice where a company takes over the
c. To give companies a second chance to comply with management of its competitors
competition laws
c. A practice where a company engages in exclusive
d. None of the above dealing arrangements with its suppliers or customers

d. None of the above

14. What is the definition of abuse of economic
dependence?

a. Exploiting the economic dependence of a supplier or

customer to the disadvantage of the supplier or 19. What is the purpose of setting up a merger review
customer office under the Philippine Competition Commission?

b. Engaging in false advertising in the market a. To streamline and expedite the merger review
process
c. Granting exclusive rights to a certain product or
service to favored companies b. To provide legal representation to companies
undergoing merger review
d. None of the above
c. To provide financial assistance to companies
involved in mergers and acquisitions
15. What is the purpose of the Philippine Competition d. None of the above
Act enforcement guidelines?

a. To provide guidance to businesses in complying with

competition laws 20. What is the definition of price fixing?

b. To provide guidance to the Philippine Competition a. An agreement among competitors to set prices or
Commission in enforcing competition laws price ranges for goods or services

c. To provide guidelines for the civil courts in b. An agreement among competitors to allocate
competition-related cases markets or customers

d. All of the above c. An agreement among competitors to exchange

competitively sensitive information

d. None of the above

16. What is the definition of bid rigging?
21. What is the purpose of the Philippine Competition b. Information that is not commonly available to the
Commission Guidelines on Anti-Competitive public
Agreements?
c. Information that is not relevant to the tendering or
a. To provide a standardized approach in analyzing procurement process
anti-competitive agreements
d. None of the above
b. To limit the scope of anti-competitive agreements

c. To provide a strict interpretation of anti-competitive

agreements 27. What is the purpose of the Competition Compliance
Program of the Philippine Competition Commission?
d. None of the above
a. To provide companies with a decision-making
framework to identify, prevent, and remedy
competition concerns
22. What is the definition of essential facilities?
b. To provide legal representation to companies under
a. Facilities or services that are necessary for investigation for anti-competitive practices
competitors to compete effectively in a market
c. To provide financial incentives to companies that
b. Facilities or services that are exclusive to a certain successfully comply with competition laws
company
d. None of the above
c. Facilities or services that are necessary for the
provision of public services 28. What is the definition of a dominant market
position?
d. None of the above
a. A market position that gives a company significant
market power
23. What is the purpose of the opt-out system for the b. A market position that is exclusive to a certain
leniency program under the Philippine Competition company
Act?
c. A market position that is highly competitive
a. To encourage more companies to voluntarily come
forward and report anti-competitive practices d. None of the above

b. To provide companies with an automatic immunity

from penalties for reporting anti-competitive practices
29. What is the purpose of the Philippine Competition
c. To discourage companies from reporting anti- Commission Guidelines on Market Definition?
competitive practices
a. To provide a standardized approach in identifying
d. None of the above relevant markets

b. To limit the scope of relevant markets

24. What is the definition of an essential service? c. To provide a strict interpretation of relevant markets

a. A service that is essential for the provision of public d. None of the above
services

b. A service that is necessary for competitors to

compete effectively in a market 30. What is the definition of a refusal to deal?

c. A service that is exclusive to a certain company a. A practice where a company refuses to sell to its
customers or supply to its competitors
d. None of the above
b. A practice where a company grants exclusive rights
to certain products or services to its own subsidiaries

25. What is the purpose of the Price Act in relation to c. A practice where a company refuses to comply with
the Philippine Competition Act? competition laws

a. To regulate prices of goods and services in the d. None of the above

market

b. To prevent anti-competitive practices in the market

31. What is the purpose of the Philippine Competition
c. To provide guidance in interpreting and enforcing the Commission Guidelines on Mergers and Acquisitions?
Philippine Competition Act
a. To provide a standardized approach in analyzing
d. None of the above mergers and acquisitions

b. To limit the scope of mergers and acquisitions

26. What is the definition of bid data? c. To provide a strict interpretation of mergers and
acquisitions
a. Information that is commonly used in the tendering
or procurement process d. None of the above
32. What is the definition of exclusive dealing? b. To provide guidance in the conduct of investigations,
hearings, and adjudication of competition cases
a. A practice where a company enters into a contract
with a supplier or customer that excludes competitors c. To provide guidance in the drafting and filing of
documents related to competition cases
b. A practice where a company grants exclusive rights
to a certain product or service d. None of the above

c. A practice where a company engages in resale price

maintenance
38. What is the definition of an antitrust violation?
d. None of the above
a. A violation of competition laws that leads to reduced
competition in the market

33. What is the purpose of the Philippine Competition b. A violation of trade laws that leads to reduced trade
Commission Guidelines on Abuse of Dominant Position? volume in the market

a. To provide guidance in analyzing abuse of dominant c. A violation of import and export regulations that
position cases leads to reduced trade efficiency in the market

b. To limit the scope of abuse of dominant position d. None of the above

cases

c. To provide a strict interpretation of abuse of

dominant position cases 39. What is the purpose of the Philippine Competition
Commission Guidelines on Leniency for Cartel
d. None of the above Participants?

a. To provide guidance on how to apply for leniency for

cartel participants
34. What is the definition of a relevant market?
b. To provide guidance on how to investigate and
a. A market that is defined according to the relevant gather evidence for leniency cases involving cartels
product and geographic dimensions
c. To provide guidance on how to interpret and enforce
b. A market that is highly competitive leniency provisions for cartel participants
c. A market that is dominated by a few players d. All of the above
d. None of the above

40. What is the definition of essential inputs?

35. What is the purpose of the Philippine Competition a. Inputs that are necessary for a company to produce
Commission Guidelines on Leniency? a certain output
a. To provide guidance on how to apply for leniency b. Inputs that are exclusive to a certain company
b. To provide guidance on how to interpret and enforce c. Inputs that are commonly available in the market
leniency provisions
d. None of the above
c. To provide guidance on how to investigate and
gather evidence for leniency cases

d. All of the above 41. What is the purpose of the Philippine Competition
Act Guidelines on Leniency for Decisions of Public
Bodies or Officials?
36. What is the definition of an antitrust agreement? a. To provide guidance on how to report anti-
a. An agreement that restricts competition in trade or competitive practices of public bodies or officials
commerce b. To provide guidance on how to interpret and enforce
b. An agreement that promotes competition in trade or leniency provisions for decisions of public bodies or
commerce officials

c. An agreement that exclusively grants certain c. To provide guidance on how to investigate and
benefits to a specific company gather evidence for leniency cases involving public
bodies or officials
d. None of the above
d. None of the above

42. What is the definition of a market investigation?

37. What is the purpose of the Philippine Competition
Commission Rules of Procedure? a. An investigation conducted by the Philippine
Competition Commission to determine the
a. To provide guidance in interpreting and enforcing competitiveness of specific industries and markets
the Philippine Competition Act
b. An investigation conducted by a business to identify
potential mergers and acquisitions
c. An investigation conducted by a government agency
to identify potential suppliers or customers
48. What is the definition of resale price maintenance?
d. None of the above
a. A practice where a supplier or manufacturer imposes
a fixed or minimum resale price on its resellers

43. What is the purpose of the Philippine Competition b. A practice where a supplier or manufacturer grants
Commission Rules on Leniency Plus? exclusive rights to certain products or services to its
own subsidiaries
a. To provide guidance on how to apply for leniency
plus c. A practice where a supplier or manufacturer refuses
to deal with its customers or supply to its competitors
b. To provide guidance on how to interpret and enforce
leniency provisions for leniency plus cases d. None of the above

c. To provide guidance on how to investigate and

gather evidence for leniency plus cases
49. What is the purpose of the Philippine Competition
d. All of the above Commission Guidelines on Expedited Review of
Mergers and Acquisitions?

a. To provide guidance on how to expedite the review

44. What is the definition of a price squeeze? process for mergers and acquisitions
a. A practice where a vertically integrated dominant b. To limit the scope of mergers and acquisitions that
firm raises the price of its upstream product and/or can undergo expedited review
lowers the price of its downstream product to exclude
rivals in the downstream market c. To provide guidance on how to interpret and enforce
expedited review provisions
b. A practice where a company refuses to sell to its
customers or supply to its competitors d. None of the above

c. A practice where a company engages in exclusive

dealing arrangements with its suppliers or customers

d. None of the above

45. What is the purpose of the Philippine Competition

Commission Guidelines on Undertakings for Abuse
Cases?

a. To provide a standardized approach in imposing

remedies for abuse cases

b. To limit the scope of remedies for abuse cases

c. To provide a strict interpretation of remedies for

abuse cases

d. None of the above

46. What is the definition of a predatory price?

a. A price that is set below cost to injure or eliminate

competitors

b. A price that is set above market price to maximize

profits

c. A price that is set by a monopolist to maximize

profits

d. None of the above

47. What is the purpose of the Philippine Competition

Commission Guidelines on Credit Card Operations?

a. To provide guidance on the regulation of credit card

operations in the country

b. To provide guidance on the investigation of credit

card-related competition cases

c. To provide guidance on how to report anti-

competitive practices in the credit card industry

d. None of the above