Competition regulator flags property developers’ exclusivity deals with internet providers

THE Philippine Competition Commission (PCC) said exclusive internet provider deals entered into by property developers for residents of their communities are not conducive to market competition.

In a statement on Thursday, the PCC said several property developers were sent enforcement advisory letters (EALs) as a result of such arrangements. The letters were sent following complaints by tenants or residents because developers have an exclusive provider or are hindering other ISP operators from installing connections on their premises.

The PCC said eight developers have voluntarily complied with the EALs and have allowed other ISPs into their respective properties. These developers include 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.

“PCC utilizes EAL as a tool to advise companies to correct competition concerns immediately. Through the enforcement advisory, firms are given the chance to correct their actions and avoid the long process of prosecution,” the commission said.

Arsenio M. Balisacan, PCC chairperson, urged the public to report cases of single-ISP arrangements areas, adding that property developers should allow competition to provide such services.

“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,” Mr. Balisacan said.

The PCC said it is planning to issue a joint circular banning exclusive arrangements for internet, telecommunications, and cable TV services.

It added that it has received 104 ISP-related complaints since the creation of an ISP task force in March 2021.

“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,” Mr. Balisacan said. — Revin Mikhael D. Ochave