PCC Approves Settlement with Water Refilling Association Over Price-Fixing Issues
The Philippine Competition Commission (PCC) has officially approved a written proposal for settlement submitted by an association of water refilling station operators, identified as case 2025-002-SP. This decision, announced on January 27, 2026, follows a thorough review by the Commission, which found that the proposal adequately addressed concerns raised in earlier directives. The PCC has now instructed its Enforcement Office to closely monitor the association's compliance with the terms of the settlement.
Background of the Investigation and Settlement Process
The association in question is composed of independently owned water refilling stations operating within a specific local market. During its investigation, the PCC discovered that the group had previously engaged in coordinated pricing for certain water products, communicating these prices through public channels. Such conduct raised significant concerns under Section 14(a)(1) of the Philippine Competition Act (PCA), which explicitly prohibits agreements among competitors to fix prices. In response, the PCC directed the parties to cease this practice, leading them to opt for a settlement proposal under the PCC Rules of Procedure. This mechanism allows matters to be resolved prior to a final decision, promoting efficiency and compliance.
Key Commitments Under the Approved Settlement
Under the terms of the approved settlement, the association and its members have reaffirmed that they have ceased the coordinated pricing practice. They commit to making independent pricing and business decisions in strict accordance with competition law. The settlement includes several compliance-oriented measures designed to ensure ongoing adherence to fair competition principles. These measures encompass:
- Public communication of their commitment to fair competition through various channels.
- Full cooperation with the PCC in monitoring and enforcement activities.
- Active participation in competition law education programs and workshops.
- Support for advocacy initiatives that promote consumer awareness and highlight the benefits of competitive markets.
Statements from PCC Leadership on the Settlement
PCC Chairperson Michael G. Aguinaldo emphasized the importance of this settlement in a statement, noting, "This settlement demonstrates the Commission's vigilance in addressing price-fixing agreements that harm consumers and distort markets." He further added, "By securing the commitments to cease anti-competitive conduct and actively support our advocacy, we aim to restore fair competition and ensure that consumers benefit from competitive pricing and quality service." These remarks underscore the PCC's proactive approach to enforcing competition laws and protecting consumer interests.
Broader Implications for Market Competition and Consumer Protection
The PCC reiterates that price-fixing agreements are strictly prohibited under the PCA, as they undermine market dynamics and consumer welfare. Through settlements like this one, the Commission highlights its mandate to promote fair competition across all sectors of the economy. This case serves as a reminder of the PCC's role in supporting compliance, fostering a level playing field for businesses, and ensuring that consumers enjoy the benefits of choice, quality, and fair pricing. The ongoing monitoring by the Enforcement Office will be crucial in verifying that the association upholds its commitments, thereby contributing to a more competitive and transparent market environment in the Philippines.
