Boracay Dive Shops Fined for Price Fixing Violations

The Philippine Competition Commission (PCC) has levied fines totaling approximately P2.17 million (around $38,000) against a cartel of scuba diving shops in Boracay for engaging in illegal price fixing. This decision underscores the PCC's commitment to maintaining fair competition within the tourism sector, particularly in popular destinations like Boracay.

According to the PCC, the cartel, which included the Boracay Beach and Adventure Scuba Shops (BBASS) and several member dive shops, had implemented fixed rates for scuba diving services, claiming that these measures were intended to ensure consumer safety and stabilize local livelihoods. However, the PCC firmly stated that such practices constitute a violation of the law and cannot be justified by arguments of economic efficiency or industry protection.

“Trade associations cannot act as vehicles for price fixing agreements,” the PCC emphasized, noting that local ordinances requiring association endorsements for operation do not grant private groups the authority to dictate market prices. The commission further clarified that past illegal conduct cannot be excused by subsequent tariff ordinances.

“By breaking up these cartels, the commission shields key industries from anti-competitive practices.”Philippine Competition Commission

The fines imposed reflect the PCC's consideration of the businesses involved, which are classified as micro, small, and medium enterprises. The commission has called on local government units (LGUs) to align their ordinances with national competition policy, thereby ensuring that the tourism gateways remain open to fair and free competition.

“By breaking up these cartels, the commission shields key industries from anti-competitive practices, prevents artificial inflation, and ensures fair pricing and expanded choices for the public,” the PCC stated. The agency is actively monitoring the economy and dismantling price fixing agreements that could harm consumers.