Research Articles

Anti-Competitive Behaviors Through Consumer Switching Constraints Imposed By Mobile Telecommunications Firms In The Philippines

Anti-Competitive Behaviors Through Consumer Switching Constraints Imposed By Mobile Telecommunications Firms In The Philippines

Abstract

This Note, adding to the development of legal and economic authors on switching costs, postulates that the collectively
dominant incumbent mobile telecommunication service providers—Globe and Smart—in imposing lock-in periods and mobile number (un)portability are abusing their dominant position. The substantial and strategic creation or increase by a dominant firm of switching costs, which are the monetary and non-monetary costs consumers incur in switching from one provider to another, constitutes abuse under Section 15 of the Philippine Competition Act.

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