PCC to charge Greenfield for alleged abuse of dominance in exclusive internet provider deal

Anti-trust watchdog Philippine Competition Commission (PCC) on Monday said it has filed a case against Greenfield Development Corporation for limiting residents to use its in-house exclusive internet service provider (ISP) in Twin Oaks Place (TOP) in Mandaluyong City.

The PCC said the Statement of Objections was filed on December 29, 2020 after Greenfield only allowed TOP residents to use the Twin Oaks Place Fiber Network (TOPFN), managed by its wholly-owned subsidiary Leopard Connectivity Business Solutions Inc.

"As the investigative and prosecutorial arm of the PCC, the Enforcement Office alleged that Greenfield and Leopard abused their dominance as TOP's property developer and fixed-line internet provider by preventing the entry of other ISPs to provide their services to residents and limiting the market to Leopard as sole ISP, in violation of the Philippine Competition Act," the PCC said in an emailed statement.

The agency said that TOP while TOP was marketed as a smart home, it is not reliant on the services of Leopard as an ISP, as automation features will still work even if a unit is subscribed to another internet provider.

"As more Filipinos shift to working and learning from home under the new normal, property developers competing for the market of digital connectivity should not resort to unduly foreclosing competition and restricting choices for consumers, but compete on fair terms," PCC enforcement director Orlando Polinar said in the statement.

"After all, the competition law does not prevent condominiums to offer their own ISPs, provided other options are made available to residents," he added.

According to the PCC, residents of TOP shares that they had no access to an alternative ISP despite higher prices and slower speeds being offered by Leopard which charges as high as P3,500 per month for 40 megabits per second (Mbps), almost the same price for 100 to 150 Mbps in other ISPs.

"Abuse of dominance cases are evaluated with the end view of dismantling exploitative and exclusionary practices in business and ultimately empowering consumer choice. Under the Philippine Competition Act, an entity found to have abused its dominance in the market could face a fine of up to P110 million," said PCC chairman Arsenio Balisacan.

The PCC is mandated to implement the national competition policy, and enforce the competition law which promotes and protect competitive markets.

GMA News Online has reached out to Greenfield for comment. — BM, GMA News