Eight developers escaped possible anti-competition charges when they voluntarily opened their projects to other internet services providers.
The eight – DMCI Homes Inc., Urban Deca Homes, Vista Residences Inc. Victoria Towers by New San Jose Builders Inc., Amaia Land Corp. CHMI Land Inc., Avida Land Corp, Kirkwood Development Corp. – were part of the 13 developers served by the Philippine Competition Commission (PCC) with enforcement advisory letters (EAL) arising from complaints by residents and tenants that their condominiums or subdivisions had exclusive dealing with ISPs.
The PCC said the five others are now in “different levels of investigation” and if found to be exercising an exclusive deal may face abuse of dominance case.
PCC said the eight “voluntarily complied” with the EALs.
“The lack of competition in this space (internet service provision) forced by exclusivity dealings by property developers is an issue that we are determined to solve. We encourage the public to continue reporting to us similar cases and for developers to open their doors to different ISPs,” said PCC chairperson Arsenio Balisacan..
Following the 2019 case of PCC against Urban Deca Condominiums for its ISP exclusivity deal, the agency has received several similar complaints from homeowners in various developments. To recall, Urban Deca paid a fine of P27.11 million as the first abuse of dominance case in violation of the Philippine Competition Act.
PCC also formed an ISP Task Force in March 2021 to handle the growing issue. Since then, PCC received 104 ISP-related complaints, most of which have resulted in further investigation, cases, or issuance of EALs.
EAL is a tool to advise companies to correct competition concerns immediately. Through the enforcement advisory, firms are given the chance to correct their actions and avoid the long process of prosecution.
As a long-term measure, the PCC is also working to issue this year a joint circular with various relevant housing and ICT regulators for all property developers to prohibit exclusivity arrangements in internet, telecommunications, and cable TV services. Irma Isip
