Practice question
A firm phases out a product after documented equipment failure and persistently negligible demand. A competitor says that any product withdrawal proves anticompetitive conduct. What does Section 26(e) require?
- Treat every withdrawal as unlawful
- Treat the firm's explanation as an automatic exemption
- Disregard commercial reasons because only price matters
- Assess the totality of evidence, including whether the phaseout has a reasonable commercial purpose
- Require proof that the firm intended to benefit every competitor
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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