Flashcards Studio

Two manufacturers of consumer electronics components, NovaChip and ByteCore, sign a written agreement on March 12, 2025. (i) they fix the wholesale price of 'NanoChip X' at PHP 250 per unit nationwide; (ii) they divide the market by region—NovaChip will supply the Northern and Central Luzon markets, while ByteCore will supply Mindanao, Visayas, and Southern Luzon; (iii) they impose penalties on any distributor who sells outside the terms. A consumer group files a complaint with the Philippine Competition Commission alleging price fixing and market allocation. The companies respond that the arrangement is intended to promote price stability and ensure supply.
(a) Identify the per se violation(s) implicated by these facts under Section 14 of RA 10667 and name the acts.
(b) Explain why these acts constitute per se violations and whether a rule-of-reason defense could ever justify them.