Philweb claims unfair auditing requirement

Philippines-listed Philweb Corp has moved to stop PAGCOR from implementing a new rule that requires its electronic gaming operations to be monitored by a third party audit firm - a policy which Philweb said is not imposed on other competitors.

According to the Inquirer, Philweb submitted a petition for an injunction last week with the Manila Regional Trial Court, saying that the regulator’s proposal to bid out of the services for an Electronic Gaming Management System (EGMS) violated the firm’s rights under the Constitution’s due process and equal protection clause.

“It is anti-competitive and heavily favors Inter-Active Entertainment Solutions Technology (IEST) at the expense of competitors like the plaintiff,” said Philweb in its plea.

The EGMS bidding document, submitted by PAGCOR, states that EGMS will cover all a firm’s products and services except those covered by existing intellectual property licensing.

IEST just happens to be the sole holder of an Intellectual Property Licensing and Management Agreement (IPLMA).

“EGMS has been obviously designed to exclude IEST from its coverage and thus give it an additional advantage,” said Philweb.

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