THE Philippine Competition Commission (PCC) has slapped a fine of over P27 million on two mass housing developers for imposing a sole Internet service provider (ISP) on unit owners and tenants, making this the first abuse of dominance case closed by the agency.

In a statement on Wednesday, the PCC said it imposed terms and conditions on Urban Deca Homes Manila Condominium Corp. and on its parent entity 8990 Holdings Inc. to comply with competition law. This marks the closure of the first abuse of dominance case in the country.

The firms are directed to immediately cease their admitted misconduct of anticompetitive practice, pay a fine of P27.11 million within 30 days and comply with conditions of settlement.

PCC Chairman Arsenio M. Balisacan said the agency’s decision puts a precedence that it will spare no one should in the drive against anticompetitive behavior. Urban Deca Homes and 8990 will be monitored regularly for compliance and subjected to further fines and penalties for any breach.

“This is a landmark case for the PCC that successfully resolved to stop an anticompetitive practice, restore competition in the affected market and set as example to deter other businesses from employing similar exclusive dealings,” Balisacan said.

“Competition—or lack of it—can be felt at home, at work and in one’s daily activities. The residents may have chosen Urban Deca as their address, but the condo developer should not limit the choices of residents for other services,” he added.

Residents complain

In a statement of objection in March, the PCC charged Urban Deca Homes and 8990 with abuse of dominance for imposing a sole ISP on its unit owners and tenants.

Residents in Urban Deca Homes condominiums complained the in-house ISP’s service was “slow, expensive and unreliable.” Further, they were prevented by the developers of the condominium from applying for other ISPs.

Instead of objecting to the PCC’s charge, Urban Deca Homes and 8990 pleaded to correct their anticompetitive practice through a motion for settlement negotiated between May and July, which was subjected to public comments in August before the agency firmed up a decision.

The primary complainants were residents of Urban Deca Homes in Tondo, but the terms of settlement apply to all eight of the firm’s projects in Mandaluyong, Muntinlupa, Bulacan, Cavite, Iloilo and Cebu. Abuse of dominance, Balisacan argued, is a violation of Section 15 of the competition law, prohibiting exploitative and exclusionary conduct that substantially lessens consumer choices.

“Let this be a warning to businesses that abuse their market power by elbowing out competitors for their own gain. This case shows that the PCC is serious about addressing anticompetitive practices that have long been considered par for the course in different industries. Unscrupulous businessmen can only expect the PCC to pursue more cases of a similar nature in the future,” the PCC chief cautioned.