Developers comply with order to stop exclusive ISP deals

MANILA, Philippines — Eight property firms have voluntarily complied with enforcement letters issued by the Philippine Competition Commission (PCC) to stop implementing exclusive internet service provider (ISP) deals that limit residents’ choices.

In a statement yesterday, the PCC said DMCI Homes Inc., Vista Residences Inc., Amaia Land Corp., Avida Land Corp., Urban Deca Homes, Victoria Towers by New San Jose Builders Inc., CHMI Land Inc., and Kirkwood Development Corp. have opened their properties to other ISPs.

PCC issued enforcement advisory letters (EALs) to the firms as their condominiums or subdivisions were the subject of residents or tenants’ complaints on exclusive arrangements with a sole ISP provider or for preventing other operators from providing their services in the property developments.

Through the EALs, PCC is giving firms a chance to correct their actions and avoid the long process of prosecution.

“As remote work, distance learning, and e-commerce have become part of the new normal, PCC understands the value of consumer choice for fast, stable, and affordable internet connection. The lack of competition in this space forced by exclusivity dealings by property developers is an issue that we are determined to solve,” PCC chairperson Arsenio Balisacan said.

After the PCC’s case against Urban Deca Homes Manila Condominium Corp. in 2019, the competition watchdog has received several complaints from homeowners or tenants on exclusive ISP deals.

PCC has ordered Urban Deca to pay a fine of P27.11 million after limiting homeowners or tenants to subscribe to an exclusive in-house ISP, which the competition watchdog referred to as the first abuse of dominance case in violation of the Philippine Competition Act.

In March last year, PCC formed an ISP task force which has so far received a total of 104 complaints.

Most of the complaints have resulted in further investigation, cases, or issuance of EALs.

Balisacan encouraged the public to continue to report similar cases to the PCC so developers would have to open their doors to other ISPs.

“The lessons of previous abuse of dominance cases filed by PCC should already inform property developers of putting exclusive ISP deals to a stop. Through the EALs, voluntary compliance will add to the firms’ badge of good corporate governance while giving residents the benefit of consumer choice,” he said.

As part of efforts to address the issue, the PCC is also working to release a joint circular with various relevant housing and information and communications technology regulators for all property developers to prohibit exclusivity arrangements in internet, telecommunications, and cable TV services.