4. Determining Control and Market Dominance

Determining Control and Market Dominance

Under the Philippine Competition Act, control refers to the ability to substantially influence or direct the actions or decisions of an entity, whether by contract, agency, or otherwise¹. A dominant position refers to a position of economic strength held by an entity or entities that makes it capable of controlling the relevant market independently from competitors, customers, or other market participants¹.

There is a rebuttable presumption of a market dominant position if the market share of an entity in the relevant market is at least fifty percent (50%), unless a new threshold is determined by the Philippine Competition Commission for that particular sector². In publishing thresholds or minimum share levels that give rise to this presumption, the Commission considers the structure of the relevant market, degree of integration, access to end-users, technology and financial resources, and other factors affecting market control².

In determining whether an entity holds a market dominant position, the Commission considers the following factors:

• The share of the entity in the relevant market and whether it is able to fix prices unilaterally or restrict supply in the relevant market²;
• The existence of barriers to entry and elements that could foreseeably alter both those barriers and competitor supply²;
• The existence and power of its competitors²;
• The possibility of access by competitors or other entities to its sources of inputs²;
• The power of its customers to switch to other goods or services²;
• Its recent conducts²; and
• Other criteria established by the regulations of the Act².