Thread by @roycanivel_inq

THREAD: Camella Homes, founded by tycoon Manny Villar Jr., has made it nearly impossible for residents in at least 2 subdivisions in Cavite to subscribe to an internet service provider (ISP) of their choice — unless they choose Villar’s own ISP, a case now eyed by @CompetitionPH

The Inquirer learned that the Philippine Competition Commission (PCC) has already issued a show cause order against Camella Homes, Inc., the largest home developer in the country, to explain its side.

The PCC, which polices unfair business deals and business practices that hurt consumer interests and other market players, later confirmed this to the Inquirer on Saturday.

The issue was prompted by a petition signed last year by more than 1,200 homeowners in two adjacent Camella Home subdivisions in Cavite — Cerritos Heights and Lessandra Heights — according to Aresti Tanglao, the head of one of the home owners associations there.

Their demand was simple: they should have the right to choose which ISP gets installed in their own homes. However, Tanglao said they were told only Streamtech Technologies Inc. — an ISP under the Villar Group — can operate in the Villar-owned subdivision.

The PCC has seen similar cases before. The practice — a property developer insisting its residents only use an in-house ISP — is an example of what the competition law calls an “abuse of dominance.” Simply put, it’s when a business uses its market power to restrict competition.

Since the PCC was formally organized in 2016, it has so far filed two charges of abuse of dominance — both concerning different property developers limiting which ISP their residents can choose.

An abuse of dominance can hurt both business competitors and consumers

But while many in the public may not be familiar with the phrase “abuse of dominance,” they are not strangers to its consequences, which can come in the form of having to endure a slow internet connection, even when you are willing to pay for other ISPs.

“We wish to assert our right to enjoy the benefits of competition, especially in getting the best possible internet provider. The need for reliable connectivity is even more pronounced today [in the new normal under the pandemic],” the petition read.

“This means work-from-home is no longer an option but a requirement in order to keep jobs. Students will also transition online learning because this is now part of the Philippine education system,” it added.

The petition was sent to a number of government agencies in July 2020, including the local government unit of Bacoor. Over the next few months, the LGU tried to intervene by writing to Camella Homes, until it eventually recommended that the homeowners bring the fight to the PCC.

The situation has already reached a point wherein Camella Homes has assigned a station for “armed guards,” said Tanglao, who would stop any team from rival ISPs from installing their internet lines, even though their services were being asked for by the homeowners.

Before this, Converge ICT Solutions Inc. managed to install new internet lines in the subdivision by securing the permission of the homeowners association, but not of the property developer.

Globe, with the homeowners’ blessing, tried to follow suit. But then the guards came.

Tanglao said Camella has now changed its approach: other ISPs can come in, but there’s a catch.

Rival ISPs can install their internet lines in the subdivision, but only under the condition that they’d comply to requirements, which are supposedly “standard requirements.”

But Globe Telecom, Inc. said these requirements are too much, especially given the Bayanihan to Recover as One Act, which temporarily suspended the requirements and clearances normally needed to put up internet infrastructure.

Under the law popularly known as Bayanihan 2, no national or local permit or clearance shall be required for constructing, installing, repairing and running internet infrastructure for three years, apart from a building permit and a height clearance permit.

“There were 18 conditions/requirements being asked by Camella Homes in order to proceed,” said Yolanda Crisanto, chief sustainability officer and senior vice president for corporate communications at Globe, in a Viber message to the Inquirer.

She noted that “the requirements of Camella Homes were more than those required by Bayanihan 2.”

These conditions include a a P1 million contractor bond and a P100 to P200 construction permit fee for every linear meter, according to a copy of the requirements. @inquirerdotnet

@InquirerBiz