COMMISIONS for tour guides, hotels and booking agents were also capped at 10 percent and member dive shops faced fines as well as closure if found to be violating the agreements.

BBASS and the dive shops claimed the fixed rates were for consumer safety, had stabilized local livelihoods and were known to the local government unit. The PCC, however, said price fixing was an outright violation of the law and could not be justified by economic efficiency or industry protection.

Trade associations cannot act as vehicles for price fixing agreements, the competition watchdog said, adding that local ordinances requiring an association endorsement to operate do not give private groups the legal authority to dictate commercial market prices.

Later tariff ordinances also cannot retroactively excuse past illegal conduct, it added.

The P2.17 million in combined fines, the PCC said, took into consideration that BBASS and the dive shops were micro, small, and medium enterprises.

It urged LGUs to align their ordinances with national competition policy to keep the country’s tourism gateways open to fair and free competition.

The PCC said that it was continuing to monitor the economy and dismantle price fixing agreements that harm consumers.

“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,” it added.