Question

Scenario:

Company A, a leading telecommunications company in the Philippines, plans to acquire Company B, a rival telecommunications company. The proposed acquisition would result in Company A having a dominant market position in the telecommunications industry.

Based on the Philippine Competition Act (R.A. No. 10667), particularly Sections 16-22 on Mergers and Acquisitions, answer the following questions:

1. What are the factors that would trigger the mandatory notification requirement under the Philippine Competition Act for the proposed acquisition of Company B by Company A?
2. Discuss the role of the Philippine Competition Commission (PCC) in assessing the proposed acquisition and determining whether it may substantially lessen competition in the telecommunications industry.
3. Explain the concept of a "substantial lessening of competition" under the Philippine Competition Act and discuss the standard used by the PCC to determine if a merger or acquisition falls under this category.
4. If the PCC finds that the proposed acquisition may substantially lessen competition, what remedies or actions can it undertake to address the concerns?
5. Under what circumstances can the PCC prohibit or conditionally approve the proposed acquisition?
6. Discuss the potential legal consequences for Company A if it proceeds with the acquisition without obtaining the required approval from the PCC.