Flashcards Studio

LuxeShop, a dominant online fashion marketplace in Metro Manila and nearby provinces, commands approximately 60% of the relevant online fashion sales in its market. It imposes two practices: (i) all merchants listing on LuxeShop must use LuxeShop’s in‑house courier network and integrate with LuxeShop’s logistics platform, effectively tying delivery and platform usage; (ii) it employs a tiered commission system where newer or smaller sellers pay substantially higher commissions for comparable order volumes than long‑standing top sellers. A new entrant, NovaBoutique, seeks to enter but cannot compete under these terms. Advise whether LuxeShop’s conduct constitutes abuse of dominant position under Sec. 15 RA 10667. Your answer should address (a) whether LuxeShop has a dominant position in the relevant market and state the controlling test; (b) whether the two practices amount to abuse of dominant position under Sec. 15, applying the facts; (c) if the regulator seeks to remedy the conduct, outline a plausible course of action and factors to consider.