Practice question
Two rivals raise prices after the same input-cost shock. Independent records show each separately responded commercially; no agreement is otherwise established. The investigator treats matching prices alone as necessarily proving an agreement. What is the best statutory correction?
- Every parallel price movement is conclusively a cartel
- The totality of evidence and reasonable commercial purpose must be assessed; parallel movement alone does not eliminate the need to establish the alleged agreement
- Input costs may never be considered
- The companies must merge
- Only a written denial counts as evidence
Legal references
- RA 10667, Philippine Competition Act, Sections 4, 14-15 and 24-27: https://lawphil.net/statutes/repacts/ra2015/ra_10667_2015.html
Answer this question in flashcards to review your response and continue practicing.