Practice question
Two independent competing suppliers agree to fix their selling prices. Their minutes state that the arrangement will reduce administrative costs. In response to proceedings, they invoke Section 26's reference to efficiency and demand treatment of the agreement as an ordinary effects-based restraint. Assume the price-fixing agreement is proved. Which answer best reconciles the provisions?
- Section 26 automatically repeals all per se prohibitions
- The claimed savings automatically excuse the agreement
- The agreement is outside the Act because it is written
- Only a dominant firm can enter a prohibited agreement
- The specific per se prohibition in Section 14(a) must be respected; Section 26 does not convert proved competitor price fixing into an ordinary efficiency-balancing case
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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