Dear PAO,

I recently moved into a new condominium in Brgy. Bagong Pag-asa, Quezon City, and I am planning to get a Wi-Fi connection because I need it for my job as a virtual assistant. When I asked the condominium administration about it, they informed me that they have an exclusive partnership with only one Internet Service Provider (ISP). I am wondering if this is legal because I would prefer to keep my current ISP, which I find reliable and fast based on my experience. Unfortunately, it is not the same as the partner ISP of our condominium. Can you enlighten me on this matter? Thank you for your response.

Brendan

Dear Brendan,

Republic Act (RA) 10667, also known as the “Philippine Competition Act,” was signed into law in 2015, primarily to protect the consumers. It is a crucial law for safeguarding consumer interests, ensuring fair competition, and fostering a dynamic and innovative business environment in the Philippines.

By preventing anti-competitive practices like price-fixing and monopolies, the law helps ensure that consumers have access to better prices, improved product quality, and greater choices. The Act promotes healthy competition by preventing companies from abusing their market power. This creates an environment where businesses can compete on equal footing, leading to innovation, more diverse offerings, and efficient services. When companies compete fairly, it encourages them to improve their products and services to attract consumers, benefiting the economy overall.

It is specifically stated in Section 15(b) and (i) of RA 10667 that:

“Sec. 15. Abuse of Dominant Position. – It shall be prohibited from one or more entities to abuse their dominant position by engaging in conduct that would substantially prevent, restrict or lessen competition: xxx

“(b) Imposing barriers to entry or entry or committing acts that prevent competitors from growing within the market in an anti-competitive manner except those that develop in the market as a result of or arising from a superior product or process, business acumen, or legal rights or laws. xxx

“(i) Limiting production, markets or technical development to the prejudice of consumers, provided that limitations that develop in the market as a result of or due to a superior product or process, business acumen or legal rights or laws shall not be a violation of this Act: xxx”

Furthermore, the Philippine Competition Commission plays a central role in ensuring compliance with the Act. It has the power to investigate violations, impose penalties, and take legal action against violators. Penalties for anti-competitive behavior can be significant, including hefty fines and even imprisonment for executives involved in illegal practices.

In the situation you mentioned, the exclusive partnership with only one Internet Service Provider (ISP) in your condominium may be considered a violation of Section 15(b) and (i) of the RA 10667 which was stated above. Under the said Act, such exclusive contracts may hinder competition and create unnecessary barriers for competitors, as well as tenants who often face limited choices when it comes to high-speed internet services.

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]