The Philippine Competition Commission filed a case against Urban Deca Homes Manila Condominium Corp. and mass housing developer 8990 Holdings Inc. for allegedly breaching the anti-trust law when they allowed an exclusive internet service tie-up on their property in Tondo, Manila.
The commission’s enforcement unit charged the companies for alleged abuse of dominance by imposing a sole internet service provider on residents and tenants, preventing them from availing alternative fixed-line ISPs.
It was the first abuse of market dominance case filed before the anti-trust agency in violation of Section 15 of the Philippine Competition Act, which prohibits abuses of dominant position.
Urban Deca Homes Manila is a low-cost condominium that is a part of the property portfolio of 8990 Holdings Inc. developed by Euson Realty and Development Corp. and Tondo Holdings Corp.
“This is a fair warning to businesses that resort to exclusive partnerships to corner profit and hinder the entry of other competitors in the exercise of its market power. This act of abuse of dominance limits the choices made available to residents and is a violation of the competition law,” said PCC enforcement office director Orlando Polinar.
The enforcement office said that as the investigative and prosecutorial arm of PCC, it found that Urban Deca Homes Manila’s property manager blocked other ISPs from installing fixed-line internet on units and from marketing their services to interested residents.
Numerous complaints from unit owners and tenants of Urban Deca Homes triggered the probe, with allegations that they were prevented from applying for other ISPs despite the slow, expensive and unreliable service of the in-house “Fiber to Deca Homes”.
Residents complained that “Fiber to Deca Homes” charges P1,249 for 2 megabits per second which is almost equivalent to a 5 Mbps plan from other service providers, while its 5Mbps monthly plan of P2,599 only costs P1,299 from other networks.
Its 6 Mbps service costs P2,949 which is equivalent to 50 Mbps from one ISP, and almost the same price for 100 Mbps from another ISP.
“Through this case, the PCC enforcement office intends to stop the property manager and developer from limiting the market for fixed-line internet so third-party providers may enter such market under reasonable terms and offer choices to the residents,” said Polinar.
Under the Philippine Competition Act, an entity found to have abused its dominance in the market could face a fine of up to P100 million.”‹
