Flashcards Studio

A dominant online marketplace for consumer electronics, MarketHub, operates in Metro City and commands approximately 65% of the city’s online electronics sales. MarketHub requires two terms of sellers who wish to list products on its platform: (i) exclusive use of MarketHub’s fulfillment and payment systems as a condition for listing, effectively tying logistics and payment services to the ability to sell on MarketHub; and (ii) a tiered fee structure where the platform charges new sellers substantially higher listing and access fees than established sellers for equivalent exposure, data access, and promotional opportunities. A new entrant platform, SwiftShop, seeks to enter the market but cannot compete on these terms. Advise whether MarketHub’s conduct constitutes abuse of dominant position under Sec. 15 of RA 10667 (Philippine Competition Act). Your answer should address (a) whether MarketHub has a dominant position in the relevant market and 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.