Antitrust body files case vs Urban Deca for imposing subscription to sole ISP

Antitrust watchdog Philippine Competition Commission (PCC) has filed a case against Urban Deca Homes Manila Condominium Corporation and 8990 Holdings Inc. for abuse of dominance by imposing its residents to subscribe to a sole internet service provider (ISP).

In a statement, the PCC said its Enforcement Office filed a Statement of Objections against the mass housing developer for breaching the antitrust law by engaging in an exclusive internet service tie-up on its property in Tondo, Manila.

According to the PCC, Urban Deca Homes Manila engaged in an exclusive deal with Itech Rar Solutions Inc. as its ISP, marking the first abuse of market dominance case filed before the PCC.

Urban Deca Homes Manila is a low-cost condominium that is part of the property portfolio of 8990 Holdings Inc. developed by Euson Realty and Development Corporation and Tondo Holdings Corporation.

"This is a fair warning to businesses that resort to exclusive partnerships to corner profit and hinder the entry of other competitors in exercise of its market power," said Enforcement Office Director Orlando Polinar.

"This act of abuse of dominance limits the choices made available to residents and is a violation of the competition law," he elaborated.

In its statement, the PCC said its investigation revealed that the exclusive partnership with one ISP prevented the entry and access of other providers in Urban Deca Homes Manila.

It also 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.

Residents of Urban Deca complained that the "Fiber to Deca Homes" charges P1,249 for 2 megabytes per second (Mbps), which is said to be equivalent to a 5 Mbps plan from other service providers.

Meanwhile, the 5 Mbps Fiber to a monthly plan of P2,599 only costs P1,299 from other networks while 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 other 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," added Polinar.

Under the Philippine Competition Act (PCA), entities found to have abused its dominance in the market could face a fine of up to P100 million.

Shares of 8990 Holdings Inc. closed Monday at P13.06 per share, down by 52 centavos or 3.83 percent from last Friday's P13.58 apiece. —LDF, GMA News