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Unfair Trade Practices in the Philippines

Author

Listed:
  • Yap, Josef T.
  • Abad, Anthony R.A.
  • Gonzales, Kathrina G.
  • Rosellon, Maureen Ane D.

Abstract

Unfair trade practices (UTPs) demonstrate anticompetitive behavior which can be characterized into two general types: exclusionary abuse--an act of the firm (or a group of firms) to prevent entry of potential firms; or exploitative abuse--referring to actual abuse of market power. However, this study adopts a narrower definition of UTPs which are wrongful or deceptive practices implemented by a business that cause an economic injury to a consumer (B2C) or another business (B2B).A survey was conducted to determine the extent and awareness of UTPs in the Philippines. The main finding from the survey results is that many respondents indicate that UTPs are moderately to highly widespread. Moreover, an overwhelming majority believes that UTPs have adverse impacts on business transactions and consumer welfare. However, not many are aware of the legal remedies against UTPs. Moreover, business firms interviewed are reluctant to participate in legal action against UTPs. The reluctance pursue legal channels against UTPs may imply that there are gaps in the legal infrastructure to address B2B UTPs. The survey results can also be interpreted to mean that while businesses are aware of the adverse impacts of UTPs, they do not seek to "rock the boat." The latter is consistent with the lack of a `culture of competition` in the Philippines. This can be partly addressed by the establishment of a comprehensive competition law.

Suggested Citation

  • Yap, Josef T. & Abad, Anthony R.A. & Gonzales, Kathrina G. & Rosellon, Maureen Ane D., 2012. "Unfair Trade Practices in the Philippines," Discussion Papers DP 2012-39, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2012-39
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    File URL: https://www.pids.gov.ph/publication/discussion-papers/unfair-trade-practices-in-the-philippines
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    References listed on IDEAS

    as
    1. Emmanuel S. de Dios, 2011. "Institutional constraints on Philippine growth," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 48(1), pages 71-124, June.
    2. Balisacan, Arsenio M. & Hill, Hal (ed.), 2003. "The Philippine Economy: Development, Policies, and Challenges," OUP Catalogue, Oxford University Press, number 9780195158984.
    3. Nye, John, 2011. "Taking Institutions Seriously: Rethinking the Political Economy of Development in the Philippines," Asian Development Review, Asian Development Bank, vol. 28(1), pages 1-21.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Competition in Asia: too little of a good thing
      by Adam Triggs in East Asia Forum on 2019-03-04 11:00:32

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    Cited by:

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    2. Serafica, Ramonette B., 2016. "Sustaining the Competitiveness of Philippine Services," Philippine Journal of Development PJD 2014-2015 Vol. 41-42 , Philippine Institute for Development Studies.

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