The Philippine Competition Commission (PCC) has imposed a fine of ₱2.17 million on the Boracay Business Administration of Scuba Shops (BBASS) and its members for engaging in anti-competitive behavior by means of price-fixing on the popular island destination.

In a statement on Friday, July 3, the PCC said it fined BBASS and 39 of its member-dive shops for eliminating market competition among themselves by agreeing on floor prices for scuba diving services.

The PCC also directed the industry group and its members to cease and desist from enforcing these prices, which were established through a multi-year pricing agreement, for harming local tourism in Boracay.

BBASS, a non-stock domestic corporation established to regulate and protect the diving industry in Boracay, was identified as the central facilitator of the price-fixing agreement.

The agreement imposed minimum floor prices on popular services, such as ₱3,000 for discover scuba diving and up to ₱25,000 for open-water diver courses.

It also capped commissions for tour guides, hotels, and booking agents at 10 percent and prohibited shops from offering customer freebies such as extra dives, masks, T-shirts, meals, or photographs.

During its probe, the PCC said BBASS and its member-dive shops argued that the fixed rates protected consumer safety and helped stabilize local livelihoods. They claimed that the pricing agreement operated with the knowledge of the local government of Boracay.

In response, the commission said price-fixing is a blatant violation of the Philippine Competition Act and therefore cannot be justified by economic efficiency or industry protection.

As for BBASS, the PCC said that while trade associations are established to promote safety standards, they cannot act as “vehicles for price-fixing agreements.”

“Furthermore, administrative local ordinances requiring an association endorsement to operate do not give private groups the legal authority to dictate commercial market prices, nor can the later tariff ordinances retroactively excuse past illegal conduct,” it said.

In a submission to the Organization for Economic Cooperation and Development (OECD), the PCC said the fine imposed on BBASS was “significantly higher than its members’, considering that [it] acted as facilitator of the price-fixing scheme.”

The fines imposed on the group’s 39 member dive shops were “significantly lower” since the PCC determined that they all belonged to micro, small, and medium enterprises (MSMEs).

"The computation of fines is primarily based on relevant turnover which represents sales within the Philippine market affected by the violation during the applicable financial year. In case of trade associations or professional organizations, the relevant turnover is determined by summing the individual relevant turnovers of each constituent member,” the PCC said in the report.

By dismantling price-fixing agreements, the PCC said it protects key industries from anti-competitive practices, helping ensure fair pricing and expanded choices for the public.