PCC fines Boracay scuba group, 39 members P2.17M for price fixing

MANILA, Philippines — A Boracay scuba association and 39 of its member-shops have been fined a combined P2.17 million by the Philippine Competition Commission (PCC) for engaging in price fixing on Boracay Island.

In a statement issued on Friday, July 3, the Boracay Business Administration of Scuba shops (BBASS) and its members were ordered to cease and desist from enforcing the multi-year price fixing agreement.

The commission found that the BBASS, a non-stock domestic corporation established to regulate and protect the local diving industry, acted as the central facilitator of the price fixing agreement, harming local tourism.

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The anti-competitive behavior was said to be in violation of Section 14(a)(1) of the Philippine Competition Act.

The group utilized the 2016 rules regulations, alongside the 2018 and 2019 formal pricing agreements, to eliminate market competition, according to the PCC.

Under the pricing mechanism, the group imposed minimum floor prices on popular activities such as P3,000 for discover scuba diving sessions and up to P25,000 for open water diver courses.

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Moreover, the group capped commissions for tour guides, hotels and booking agents at 10 percent, as well as banning shops from offering customers incentives such as free extra dives, masks, t-shirts, meals, or photographs, the PCC reported.

The BBASS and its members argued that the fixed rates protected consumer safety and stabilized localized livelihoods with the knowledge of the local government unit.

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The PCC, however, rejected those arguments, stating that, “ruling that price fixing is an outright violation of the law that cannot be justified by economic efficiency or industry protection.”

Furthermore, the PCC urged local government units to align local ordinances with the National Competition Policy to ensure fair and free market competition on the country’s tourism gateways.

The move is part of the PCC’s heightened monitoring to dismantle price fixing agreements and anti-competitive cartels that harm consumers. /das

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