LSaF

Question

Commercial

Ulap Digital, Inc. (UDI) controls approximately 78% of the market for cloud computing and digital storage services for small and medium enterprises in the Philippines. UDI recently announced a new commercial policy: any enterprise that subscribes to UDI's cloud storage service will receive a 35% discount on UDI's related cloud computing and data analytics services — but only if the subscriber does not simultaneously use the competing cloud services of any other provider. Subscribers who maintain accounts with a competing provider in addition to UDI will be ineligible for the discount and will pay the standard rate, which is significantly higher. Several of UDI's competitors filed a complaint before the Philippine Competition Commission (PCC), arguing that this policy constitutes an abuse of dominant position under the Philippine Competition Act. UDI countered that offering loyalty discounts to exclusive subscribers is a normal and legitimate commercial practice that does not harm competition. Is UDI's policy an abuse of dominant position? (Bar 2026 Syllabus)

0/1500
7:00
Skip