Condo developer under fire over exclusive deal with internet provider

A condominium developer is facing a case over its alleged exclusive partnership with an internet service provider.

PCC files case against Urban Deca Homes

The Philippine Competition Commission (PCC) slapped Urban Deca Homes Manila Condominium Corp. and 8990 Holdings Inc. with a "statement of objections" for "abuse of dominance" in the market. 

The antitrust watchdog over the weekend said its prosecutorial team found that the property manager had an exclusive deal with Itech Rar Solutions Inc. This means Urban Deca Homes had blocked other internet providers, which is an illegal act, forcing the PCC to issue a case against the company.

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 PCC enforcement office director Orlando Polinar. 

An investigation was conducted after residents of the condominium raised concerns about the poor quality service of Itech Rar Solutions.

They claimed Itech Rar Solutions was offering 2 megabits per second (Mbps) for PHP 1,249, an expensive price for a 2 Mbps internet speed. 

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

Its parent company 8990 Holdings, Inc. said it was already "looking into the matter".

Source: ABS-CBN