b. Determining Anticompetitive Agreement or Conduct

iii. Determining existence of anti- competitive agreement or conduct

To determine whether an agreement or conduct substantially prevents, restricts, or lessens competition, the Philippine Competition Commission (PCC) shall, in appropriate cases, consider the following factors:

• Identify and delineate the relevant market allegedly impacted by the agreement or conduct, guided by the rules in Section 24 of the Philippine Competition Act (PCA)¹ and Rule 5 of the PCA Implementing Rules and Regulations (PCA-IRR)²;
• Evaluate whether the alleged agreement or conduct causes an actual or potential adverse effect on competition in the relevant market, and whether that harm is substantial and exceeds any actual or potential efficiency benefits generated by the conduct or agreement;
• Take a comprehensive and forward-looking view, taking into account future market dynamics, any critical necessity of providing goods or services to consumers, significant infrastructure investment requirements, statutory obligations, and the domestic economy's capacity to confront international competition, alongside the historical conduct of the involved entities and existing market conditions;
• Weigh the objective of preventing substantial restrictions on competition against the danger that overzealous or unwarranted regulatory intervention might hinder economic efficiency, productivity, innovation, or the advancement of national priority industries; and
• Appraise the totality of evidence to determine whether it is more likely than not that the enterprise engaged in an anticompetitive agreement or conduct, examining whether the act served a legitimate business objective, such as discontinuing a product line, shutting down operations, or executing a reasonable commercial response to a competitor's entry or behavior. (Sec. 26, PCA³; Rule 7, PCA-IRR⁴)

Note: Under the PCA, the evidentiary threshold required to establish anticompetitive agreements is substantial evidence, which consists of that amount of relevant evidence that a reasonable mind might accept as adequate to support a conclusion.