Practice question
Assume dominance is established. A supplier sells below cost after a competitor offers a lower price for a comparable product of like quality. Internal records show the supplier intended in good faith to meet that price and not to drive competition out. The investigator says below-cost pricing automatically proves Section 15(a) abuse and refuses to consider those records. Which response is correct?
- The investigator must consider the statutory qualification concerning absence of an exclusionary object and good-faith competitive pricing
- Every below-cost price is automatically lawful
- Dominance prevents any price competition
- A competitor's lower price excuses every form of abusive conduct
- The Act applies only after the competitor closes
Legal references
- RA 10667, Philippine Competition Act, Sections 4, 14–15 and 24–27: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/63120
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