Urban Deca, 8990 ordered to pay P27M
Credit to Author: The Manila Times| Date: Wed, 02 Oct 2019 16:20:51 +0000
IN what was described as the first “abuse of dominance” case in the country, the Philippine Competition Commission (PCC) slapped Urban Deca Homes Manila Condominium Corp. and its parent firm 8990 Holdings Inc. with a P27.11-million fine for forcing dwellers in their nine projects to only use their in-house internet service provider (ISP).
In a statement on Wednesday, the state-run antitrust watchdog said it had approved the modified terms of settlement proposed by the two companies to end the exclusive agreement between Urban Deca Homes and ISP Fiber to Deca Homes.
The firms are ordered to pay the fine within 30 days and comply with the terms and conditions of the settlement, it added. They will also be monitored regularly for compliance.
PCC Chairman Arsenio Balisacan called the case a “landmark” one, as his commission “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.”
“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 said.
According to the agency, the abuse of dominance the property developers showed violated Section 15 of Republic Act 10667, or the Philippine Competition Act of 2015, which prohibits exploitative and exclusionary conduct that substantially lessens competition.
The case stems from a complaint filed in March against Urban Deca Homes and 8990 by residents of the firms’ property in Tondo, who claimed that Fiber to Deca Homes charged P1,249 for 2 megabits per second (Mbps), which is already equivalent to a 5 Mbps plan from other service providers.
The ISP’s 5Mbps monthly plan of P2,599 only costs P1,299 in other providers, they added.
Although the case originated from the Tondo condo, the PCC said the ruling applied to the eight other Urban Deca projects in Mandaluyong and Muntinlupa cities and the provinces of Bulacan, Cavite, Cebu and Iloilo.
Instead of contesting the complaint, the firms offered to settle. The proposed terms for the settlement, negotiated from May to July, were subjected to public comments in early August before their submission to the PCC for final decision.