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Economic analysis and evidence in abuse cases – Break-out Session 1 – Techniques and evidence for assessing market power – PHILIPPINES – December 2021 OECD discussion

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OECD Directorate for Financial and Enterprise Affairs
OECD Directorate for Financial and Enterprise Affairs

This presentation by the Philippines was made during the break-out Session 1, “Techniques and evidence for assessing market power” in the discussion “Economic analysis and evidence in abuse cases” held at the 20th meeting of the OECD Global Forum on Competition on 7 December 2021. More papers and presentations on the topic can be found out at oe.cd/eac.

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ECONOMIC ANALYSIS AND EVIDENCE IN ABUSE CASES Benjamin E. Radoc, Jr., PhD Director, Economics Office December 2021
Philippine Competition Commission (PCC) Milestones Prohibitions: • Anticompetitive mergers • Anticompetitive conduct • Abuse of dominance
Theory of harm • Predatory pricing • Price discrimination • Refusal to deal Analytical techniques • Areeda-Turner rule (cost-based price test). • Statistical tests to validate price difference/s • Volume of fulfilled transactions Gathering of evidence • Respondent’s reply to subpoena • Data from respondent’s clients, government Practical issues • Market participants reluctant to provide info • Misleading or erroneous information Glass
Theory of harm • Abuse of dominant position by imposing barriers to entry Analytical techniques • Comparison of prices and quality of service • Ease of entry by other ISPs Gathering of evidence • Interviews/FGDs/survey among condominium residents; other potential internet service providers Practical issues • In-house technical expertise on telco service provision Fixed-line internet services
Theory of harm • Foreclosure of other beverage manufacturers • Loss of choice Analytical techniques • Exploratory Data Analysis • Cross-elasticity analysis Gathering of evidence • Market Survey • Subpoena to obtain internal documents • Interviews Practical issues • Purchase of data from Third-Party Providers • Pandemic-related restrictions on field missions Non-alcoholic Beverages
Thank you.

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  • 1. ECONOMIC ANALYSIS AND EVIDENCE IN ABUSE CASES Benjamin E. Radoc, Jr., PhD Director, Economics Office December 2021
  • 2. Philippine Competition Commission (PCC) Milestones Prohibitions: • Anticompetitive mergers • Anticompetitive conduct • Abuse of dominance
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