The Philippine Competition Commission (PCC) has fined the Boracay Business Administration of Scuba Shops (BBASS) and 39 of its member dive centres a combined ₱2.17 million (approximately US$35,000) after ruling they participated in an illegal price-fixing agreement that restricted competition on one of Asia’s most popular dive destinations.
In a decision released on 3 July, the PCC found that BBASS and its members had violated Section 14(a)(1) of the Philippine Competition Act by coordinating prices for scuba diving services over several years.
Alongside the financial penalties, the Commission ordered the association and its members to immediately cease enforcing the pricing arrangements.
Minimum prices and restrictions
According to the PCC, the association established rules that required participating dive operators to charge minimum prices for a range of services.
Among the fixed prices were:
- Discovery scuba diving: ₱3,000 (around US$49)
- Open Water Diver courses: up to ₱25,000 (around US$407)
The agreement also prohibited operators from competing through value-added offers. Dive centres were barred from including free extras such as:
- Additional dives
- Meals
- T-shirts
- Dive masks
- Underwater photographs
The arrangement further limited commissions paid to hotels, booking agents and tour guides to a maximum of 10%. Operators found to have breached the agreement reportedly faced fines and possible suspension or closure within the association.
Safety arguments rejected
BBASS argued that the pricing policy helped maintain diver safety, protected businesses from destructive price competition and operated with the knowledge of local authorities.
However, the PCC rejected those arguments, stating that agreements between competitors to fix prices are considered anti-competitive regardless of the motivation behind them.
The Commission emphasised that while trade associations can play an important role in promoting safety standards and best practice, they cannot be used as a vehicle for coordinating commercial pricing.
The regulator also clarified that local ordinances recognising or requiring association membership do not give private organisations the authority to dictate market prices or restrict competition.
Investigation began in 2021
The investigation began following an administrative complaint filed in 2021.
The PCC concluded that BBASS acted as the central organiser of the pricing arrangement through its rules and regulations introduced in 2016 and subsequent pricing agreements adopted in 2018 and 2019.
While finding that the conduct breached Philippine competition law, the Commission said it took into account that the association and the 39 dive shops are classified as micro, small and medium-sized enterprises when determining the level of penalties.
Wider implications for the dive industry
The ruling serves as a reminder that dive industry associations can promote safety, environmental stewardship and professional standards, but must avoid coordinating commercial decisions that reduce consumer choice or distort competition.
For dive operators around the world, the decision highlights the importance of ensuring that collaboration on safety and conservation remains clearly separated from pricing and other commercial activities.
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