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The PCC will prohibit developers and telecommunications from entering into exclusive ISP agreements with renters.

The Philippine Competition Commission (PCC) is nearing completion on a memorandum circular that would prevent developers and telecommunications companies from imposing exclusive partnerships between internet service providers (ISP) and tenants of property development projects.

“We, at the Commission, are working on finalizing a draft memorandum circular, which will essentially lay down the general principle that exclusivity arrangements, in so far as internet service provision, telecommunications entities, or cable TV (television), is sought to be prohibited,” PCC Commissioner Johannes Bernabe said in a statement.

According to Bernabe, the purpose of the memorandum circular is to offer a mechanism to ensure that consumers are not disadvantaged by exclusivity agreements.

According to him, the antitrust authorities have received roughly 100 complaints related to anti-competitive practices such as blocking ISP access through a developer-tenant exclusive internet connectivity agreement.

In this case, the Competition Enforcement Office sent advisory letters to 13 property developers, he said.

According to Bernabe, eight of the 13 developers have decided to comply and alter their anticompetitive activities, while the other five are still in the process of doing so.

Those who refuse to change their anticompetitive behavior would be investigated further by the enforcement officer, he said.

“The Commission is actively interested in ensuring that those activities are appropriately controlled, both on an enforcement and advocacy trackโ€”in terms of attempting to come up with regulation or regulatory framework to prevent the continued practice of exclusivity contracts,” he added.

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