Philippine watchdog fines Boracay dive operators for price-fixing

The Philippine Competition Commission (PCC) has fined an association of dive operators on the island of Boracay a combined 2.17 million Pesos (£28,000) after ruling they had engaged in price-fixing.

The association, known as the Boracay Business Administration of Scuba Shops (BBASS), was established by its 39 member dive centres to regulate and protect the local diving industry.

The PCC has ordered BBASS to end what it described as a ‘multi-year price-fixing agreement’ covering scuba diving services on the island that violated the Philippine Competition Act.

The commission said it found rules established in 2016, together with pricing agreements adopted in 2018 and 2019, had been introduced to eliminate financial competition between member businesses.

The PCC said that the BBASS agreements set minimum prices for a range of diving services, including ₱3,000 (£39) for Discover Scuba Diving experiences (DSDs) and up to ₱25,000 (£325) for Open Water Diver courses.

It also prohibited member dive centres from offering promotional extras such as additional dives, masks, T-shirts, meals or photographs, and capped commissions paid to tour guides, hotels and booking agents at 10 per cent.

The PCC said member businesses could also face fines or closure if they failed to comply with the association’s pricing rules.

BBASS and its member dive centres argued that the fixed prices helped protect diver safety, support local livelihoods and operated with the knowledge of the local government unit.

The Commission rejected those arguments, ruling that price fixing is prohibited under Philippine competition law and ‘cannot be justified on the grounds of economic efficiency or industry protection’.

The PCC said the penalties took into account that BBASS dive operators were classed as micro, small and medium-sized enterprises.

Although the PCC has not published a breakdown of the individual fines in its statement, the ₱2.17 million fine averages out at around £680/$910 per operator.

‘Through enforcement actions like the Boracay decision, the PCC continues to monitor the economy and dismantle price fixing agreements that harm consumers,’ said a PCC spokesperson.

‘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.’

Boracay is one of the Philippines’ best-known and longest-established scuba diving destinations. The island’s western coast is fringed by shallow coral reefs, with walls and wrecks providing experiences for divers of all levels.