PCC slaps P27-M fine on 8990, Urban Deca Homes

THE Philippine Competition Commission (PCC) slapped a P27.11-million fine against Urban Deca Homes Manila Condominium Corp. and parent company 8990 Holdings, Inc., and ordered them to stop imposing a sole internet service provider (ISP) on unit owners at its nine condominium projects around the country.

This marked the closure of the first abuse of dominance case in the country, the competition watchdog said on Wednesday.

In a statement, the PCC said it has approved the terms of settlement proposed by Urban Deca Homes and 8990 Holdings, which included stopping the developer’s exclusive deal with in-house ISP Fiber to Deca Homes.

The PCC ordered the companies to pay the P27.11 million fine within 30 days, and comply with the terms and conditions of the settlement.

To recall, the anti-trust body last March charged the mass housing developer with abuse of dominance for requiring Urban Deca Homes Manila unit owners and tenants to sign up with a single ISP, and prevented them from tapping other ISPs. Several unit owners and tenants at the Tondo condominium had complained the services of the company’s exclusive ISP was slow, expensive and unreliable.

While the case covered Urban Deca Homes Manila, the PCC said the terms of settlement will apply to eight other Urban Deca projects in Mandaluyong, Muntinlupa, Bulacan, Cavite, Iloilo, and Cebu.

“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,” PCC Chairman Arsenio M. 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.”

According to the PCC, abuse of dominance is a violation of Section 15 of the Philippine Competition Act, which “prohibits exploitative and exclusionary conduct that substantially lessens competition.”

The firms did not contest PCC’s complaint, and proposed a motion of settlement to correct their misconduct.

PCC will continue to monitor the firms and may impose further penalties for any breach.

“Let this be a warning to businesses that abuse their market power by elbowing out competitors for their own gain,” Mr. Balisacan said.

Shares in 8990 Holdings dipped 0.13% or 2 centavos to close at P15.02 each at the stock exchange on Wednesday. —