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All Jurisprudence based

0 tracked cards Commercial and Taxation Laws

Two online travel platforms, TrekWay and GlobeJet, operate in Metro City. They secretly agree to (i) fix a minimum commission rate payable by hotels for room bookings, and (ii) carve Metro City into exclusive zones (TrekWay in the North, GlobeJet in the South) where each platform will actively compete and exclude the other within its zone. They disclose the arrangement to a handful of hotels and a few travel-agency partners but do not publish it publicly. The Philippine Competition Commission initiates a Sec. 26 inquiry to determine whether this constitutes anti-competitive conduct. Which of the following statements best describes whether the conduct constitutes anti-competitive under Sec. 26, addressing (a) the controlling anti-competitive conduct and legal relationships, (b) the doctrinal framework, and (c) the likely remedy or consequence?

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Remedy or consequence: The government will rely on a leniency program for the first reporter; The conduct is generally permissible if leniency is granted and no significant harm to competition is shown. Controlling anti-competitive conduct: The arrangement constitutes a legitimate joint venture aimed at efficiency gains; The doctrinal framework: rule-of-reason; The remedy: none if the venture can be shown to provide net pro-competitive effects. Controlling anti-competitive conduct: TrekWay and GlobeJet’s horizontal price-fixing of minimum hotel commissions and geographic market allocation; Their relationship is that of direct competitors in the online travel market; The doctrinal framework is per se (object restraint) analysis for price-fixing and market-sharing; The remedy/consequence: a cease-and-desist order, administrative penalties, and potential civil damages. Remedy or consequence: The correct framework is effects-based (rule of reason) analysis for price-setting and market division; The remedy would depend on the particular efficiency justification and whether the restraint is shown to unduly restrict competition.

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