Boracay Dive Operators Seek Relief from ₱2.17-Million Penalty

By Jun N. Aguirre

The Boracay Business Administration of Scuba Shops (BBASS) and its member dive operators have sought reconsideration from the Philippine Competition Commission (PCC) after the anti-trust agency imposed a total fine of ₱2.17 million for violating the Philippine Competition Act (PCA) through alleged price-fixing arrangements.

The PCC recently ruled that BBASS and its 39 member dive shops coordinated minimum prices for scuba diving services, including introductory dives and certification courses. The Commission found that these practices restricted competition and denied consumers the benefits of competitive pricing.

Mike Labatiao, president of the BBASS, said in an interview with Aklan News Channel on July 4 that the pricing guidelines were intended to maintain service quality, safety standards and fair business practices, rather than eliminate competition.

“We are only following Malay Ordinance Number 477,” Labatiao said.

During an emergency meeting on July 7 in Sitio Angol, BBASS legal counsel Atty. Richard Fabila said the group plans to elevate the case to the Supreme Court in hopes of reversing the PCC decision.

“Among our concerns for now is that several members listed under the BBASS are either non-operational or have changed management,” Fabila said.

Municipal Ordinance No. 477, enacted in 2022 and introduced by former councilor Dante Pagsuguiron, was titled “An Ordinance Fixing and Setting Guidelines in the Implementation of Tariff Rates of all Water Sports and activities in the Municipality of Malay.”

BBASS also stressed that Boracay’s diving industry is composed largely of micro, small and medium enterprises still recovering from the economic effects of the COVID-19 pandemic and previous island closures.

Labatiao said the penalties could place additional financial pressure on small dive operators and their employees, many of whom depend on tourism for their livelihood.

Despite the appeal, the dive operators affirmed their commitment to complying with Philippine laws and pledged to cooperate with the PCC while exploring lawful ways to maintain high safety and service standards.

The PCC, however, maintained that agreements among competing businesses to set minimum prices violate Section 14(a)(1) of the PCA because they prevent businesses from competing freely and may result in higher prices for consumers. The Commission also ordered the immediate cessation of the pricing arrangements and encouraged local government units to align their ordinances with the National Competition Policy.