Executive Summary: Statement of Objections by Competition Enforcement Office vs. Greenfield Development Corporation and Leopard Connectivity Business Solutions, Inc.
Competition Enforcement Office vs. Greenfield Development Corporation and Leopard Connectivity Business Solutions, Inc.
PCC Case No. E-2020-003
18 January 2021
On 29 December 2020, the Competition Enforcement Office (“Enforcement Office”) of the Philippine Competition Commission (“PCC”) filed a Statement of Objections of even date against Greenfield Development Corporation (“Greenfield”) and Leopard Connectivity Business Solutions, Inc. (“Leopard”) (collectively, “Respondents”).
The Enforcement Office alleges in its Statement of Objections that Greenfield and its wholly owned and controlled internet service provider (“ISP”), Leopard, prevented the entry of a competitor ISP to supply fixed-line internet to the residential units of Twin Oaks Place (“TOP”), a condominium located in Mandaluyong City constructed by Greenfield. Thus, residents in TOP have no access to an alternative ISP despite the higher prices, slower speed, and unreliability of the internet connection supplied by the sole and incumbent ISP, Leopard.
The Enforcement Office claims that there is substantial evidence to hold the Respondents liable for violation of Sections 15(b) and (i) of the Philippine Competition Act considering that their conduct constitutes an abuse of dominant position that substantially prevents, restricts or lessens competition by: (1) preventing entry of another ISP in the market for the supply of fixed-line internet to residential units in TOP, and (2) limiting the market for the provision of fixedline internet to residential units in TOP to the prejudice of consumers, respectively.