Practice question
Two competing wholesalers, outside any auction or bidding process, agree that one will sell only in the north and the other only in the south. The agreement has the object of substantially lessening competition. Counsel calls all market allocation per se bid rigging. Which classification best follows the text?
- This territorial division is addressed by Section 14(b)(2), with its object-or-effect standard; the separate per se bidding category must not be mechanically substituted
- Every territorial division is necessarily a merger
- The agreement is lawful merely because it is unwritten
- Only price changes can violate Section 14
- Territorial market sharing is absent from the statute
Legal references
- RA 10667, Section 14(a)(2) and (b)(2): https://lawphil.net/statutes/repacts/ra2015/ra_10667_2015.html
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