The PCC referred to the case as the country’s first resolved case on abuse of dominance.

The Philippine Competition Commission (PCC) has imposed a P27.11-million fine on Urban Deca Homes Manila Condominium Corp. and its parent firm 8990 Holdings Inc. among other conditions over a case involving the developers’ exclusive deal with an Internet service provider.

The competition watchdog on Wednesday said it has approved the terms of settlement proposed by 8990 and Urban Deca, with some modifications, in order to break the latter’s exclusive deal with an internet provider.

The PCC said the developers’ deal constitutes abuse of dominance as it forces unit owners in nine of Urban Deca’s projects across the country to subscribe to a single internet service provider.

Abuse of dominance violates section 15 of the Philippine Competition Act which prohibits exploitative and exclusionary conduct leading to the substantially lessening of competition.

To recall, the PCC filed a statement of objection against 8990 and Urban Deca in March this year over its exclusive ISP deal with Itech Rar Solutions Inc. imposed on the residents of Urban Deca Homes Manila.

Instead of contesting the complaint, the respondents moved for a motion of settlement which the parties negotiated from May to July, according to PCC. The proposed terms were then subjected to public comment in early August before it was subjected to the commission’s final decision.

As a resolution, the PCC said it ordered the companies to “cease their admitted misconduct,” on top of a P27.11-million fine. The firms were also asked to comply with the terms and conditions outlined in the settlement, as the occurrence of any breach could result on further fines and penalties.

The PCC referred to the case as the country’s first resolved case on abuse of dominance.

“This is a landmark case for the PCC that successfully resolved to stop an anti-competitive practice, restore competition in the affected market and set an example to deter other businesses from employing single exclusive dealings,” PCC chairman Arsenio Balisacan said in a statement.