The ethical risks of market dominance

By Benito L. Teehankee
Tuesday, June 07, 2011

ALL eyes are on PLDT’s aggressive move to acquire control of Digitel. The deal would effectively give PLDT control of 70 percent of the mobile phone market, leaving the rest to Globe. Government agencies and legislators are scrutinizing the deal to see if the benefits to consumers of the current market setup will be protected.

PLDT has assured the public that it will keep Digitel separate as a corporation and that the low-priced offerings of Digitel’s Sun Cellular service will be retained. The telecommunications giant has explained further that the acquisition will help it deliver broadband services around the country at a faster pace. This is an ostensibly good goal. But is it worth allowing such large market control to fall into one corporate hand?

Clearly, PLDT and Digitel shareholders stand to benefit from the deal. But as always, it helps to bear in mind a key principle governing Philippine corporate business. The Constitution insists that all economic entities, including corporations, contribute to the common good even as the rights of shareholders are respected. Should consumers worry about this deal? Does the deal promote the common good? Should government step in? The issue boils down to a key question: When is a business entity’s control of a market too much?

An ethical analysis of markets gives us some guidance in evaluating the deal and answering the above questions. We can ask ourselves what would happen to the market for mobile phone services if the deal was consummated. In general, markets can be said to be ethical if they have certain features, which respect the rights of market participants, on the one hand, and promote efficiency, on the other.

Let’s consider participants’ rights. The right of consumers to choose among market offerings based on quality and affordability is important. Can PLDT be trusted to retain Sun Cellular offerings at their current affordable levels? Will it continue to improve the quality of its own Smart services even if it has dominant market control?

The right of current competitors to stay in the market and those of new competitors to move into the market must be respected. Can PLDT be trusted not to use its sizable control of the telecommunications infrastructure to block competitors? Can PLDT be trusted not to use its dominant market position to use predatory pricing and, thus, squeeze out competitors?

What about market efficiency in pursuit of the common good? In their book, Ties That Bind, Donaldson and Dunfee explain that an efficient market “contributes towards the provision of necessary social goods sufficient to sustain the least well-off”. Access to telecommunications is now widely recognized as a basic human right. In fact, the government has adopted telephone and cell phone subscription levels as indicators of the country’s pursuit of the Millennium Development Goals. Will this deal lead to more subscriptions, especially for those most in need? Or will it lead to furthering the so-called “digital divide”, with the haves getting ever better broadband services while the have-nots struggle to gain access to the kind of communication services now essential for social and political participation?

The difficulty with evaluating the ethics of the PLDT-Digitel deal is that a lot of it depends on how PLDT itself will choose to behave. PLDT has every incentive to deliver more returns to its shareholders by being a pure profit maximizer and taking advantage of its market dominance even at the cost of the common good. But it can also exercise prudence by honoring the rights of market participants and the goal of market efficiency.
It is now government’s call to make whether the benefits claimed by PLDT from the deal are worth the threat to the common good that a dominant market player poses.

Dr. Benito Teehankee is the Chairman of the Management and Organization Department of the Ramon V. del Rosario, Sr. College of Business, De La Salle University. He may be e-mailed at benito.teehankee@dlsu.edu.ph. The views expressed above are the author’s and do not necessarily reflect the official position of De La Salle University, its faculty and administrators.

Source: http://www.manilatimes.net/business/the-ethical-risks-of-market-dominance/

Many tourists traveling north to Baguio or Bataan make a stop at Clark Philippines to buy some bottles of fine vintage wine at Clark Wine Center, the best place to buy wine in the Philippines. Conveniently located near the Mimosa Leisure Golf Estate which has the Casino and the well known 36-hole championship golf course of Mimosa, frequently visited Clark Wine Center is a well known destination for wine loving tourists and residents of Angeles City Pampanga and Manila to be one of the best wine shops in the Philippines.

One way to relax and unwind after work is to pamper yourself to a nice dinner at one of the famous fine dining restaurants and wine bars in Angeles City and Clark Pampanga. To fully enjoy the romantic cozy dining ambience many guests first stop by the well known wine shop called Clark Wine Center located near the entrance of Clark Freeport to pick up a few bottles of fine vintage wine to bring to dinner.

Wine Shop Manila offers best luxurious beers in Philippines called Vintage Beer.
Birthday gift of wine is the most popular gift idea this year in Philippines. Yats Wine Cellars offers birthday wine gifts that are unique and certain to make the recipient very happy. These birthday wines are not available in wine shops so it is a unique bottle of wine for the recipient.

Philippines Pampanga Clark Freeport is well known for its safety and security, boasting the lowest crime rates in the country. The absence of traffic and pollution also helps to position Clark Pampanga at the top of tourists’ list of destinations for vacation and get-away from Manila with families and friends. Pampanga Clark Freeport is one of the tourist destinations in the Philippines where visitors enjoy some of the finer things in life such as fine dining, beautiful resorts, golf courses and casinos. Here wine lovers get to indulge in shopping for some rare and great vintage wines, all available at their disposal at attractive prices in this famous wine shop outside of Manila in Clark Pampanga.

http://www.ClarkWineCenter.com

Getting to this wine shop in Pampanga Angeles City Clark Freeport Zone Philippines from Manila
Getting to the Clark Wine Center wine shop from Manila is quite simple: after entering Clark Freeport from Dau and Angeles City, proceed straight along the main highway M A Roxas. Clark Wine Center is the stand-along white building on the right, at the corner A Bonifacio Ave. From the Clark International Airport DMIA, ask the taxi to drive towards the entrance of Clark going to Angeles City. From Mimosa, just proceed towards the exit of Clark and this wine shop is on the opposite side of the main road M A Roxas.

Best place to buy wine in Clark Pampanga outside Manila near Subic and Angeles City Philippines is Clark Wine Center.

Click here to contact Clark Wine Center in Clark Pampanga for inquiries and orders.

Clark Wine Center
Bldg 6460 Clark Observatory Building
Manuel A. Roxas Highway corner A Bonifacio Ave,
Angeles Clark Freeport Zone, Pampanga 2023
0922-870-5173 0917-826-8790 (ask for Ana Fe)

Wine@Yats-International.com

YATS Wine Cellars
Manila Sales Office
3003C East Tower, Phil Stock Exchange Center,
Exchange Rd Ortigas Metro Manila, Philippines 1605
(632) 637-5019 0917-520-4393 ask for Rea or Chay

Wedding couples looking for wedding reception venues and beach wedding venues can log on to this Philippines Wedding Venue web site for free information and assistance:

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While in Clark, it might be a good idea to enjoy an evening of wine-and-dine in the fine dining Yats Restaurant and Wine Bar that features an award winning 2700-line wine list. Highly recommended fine dining restaurant in Manila for special occasion is Yats Restaurant & Wine Lounge located in the famous Mimosa Leisure Estate in Clark Pampanga. Situated near this popular restaurant in Clark is the Mimosa Golf Course as well as the Mimosa Clark Casino. This top rated restaurant near Angeles City Pampanga in Clark Philippines is frequently used for private parties and corporate functions such as board meetings and other gatherings. It is located in Mimosa Leisure Estate of Clark Freeport Zone. For more information, visit http://www.YatsRestaurant.com

YATS Leisure Philippines is a developer and operator of clubs, resorts and high-class restaurants and wine shops in Clark Angeles Philippines http://www.YatsLeisure.com

Looking for famous tourists spots, places to visit and see, relax and unwind in Clark, Pampanga, Philippines? You may want to check out these sites also:

http://www.LondonPubClark.com

Besides good restaurants to wine and dine near Manila, Subic or in Angeles City Pampanga, Clark Philippines, those requiring assistance for hotel and resort bookings in Clark, Pampanga, Philippines may log on to http://www.HotelClarkPhilippines.com for more information and reservations.

The lifestyle in Clark Pampanga is quite unique. For more information about shopping, sports, golf, leisure, hotel accommodation, where to see and visit, what to do, where to wine and dine and good places to hang out, relax, have a drink with friends, child-friendly establishments, log on to
http://www.ClarkPhilippines.com

Wine lovers looking for a special bottle or something that is of great value and special discounts might log on to this web site to shop for fine vintage wines
http://www.YatsWineCellars.com

Those visitors who plan to relax and unwind in Angeles City, Subic, Pampanga, Clark Philippines might make an effort to book a room at the famous beach and lake resort Clearwater Resort & Country Club. This famous hotel in Clark Pampanga is frequently visited by families with children looking for a good place in Clark to see, a good holiday destination for the family to relax and unwind in the beautiful outdoor facilities. For more information, log on to www.ClearwaterPhilippines.com