Section 21Sec./Art. 21

Administrative Penalties. -

(1) The NTC shall require DTIPs providing data transmission services to comply with prescribed performance standards and impose penalties, after due notice and hearing, for failure to comply with such performance standards:

(a) Any DTIP who fails to comply with the minimum performance standards set by the NTC shall pay a fine of at least Five thousand pesos (P5,000.00) but not exceeding Two million pesos (P2,000,000.00) per day of such default or violation, until the participant fully complies: Provided, That if the DTIP has a gross annual income not exceeding Ten million pesos (P10,000,000.00), the imposable penalty shall be equivalent to one percent (1%) to two percent (2%) of its gross annual income; and

(b) An entity who fails to substantially comply with the NTC's performance standards for three (3) consecutive years shall, subject to due process, be removed from the registry of DTIPs and prohibited from rendering data transmission services;

(2) A DTIP who fails to secure a cybersecurity certification in accordance with Section 9 of this Act shall be issued a suspension order of its operation until the DTIP is able to secure the required cybersecurity certification: Provided, That if the DTIP fails to comply with the cybersecurity certification requirement within six (6) months from the issuance of such order, it shall, subject to due process, be removed from the registry of DTIPs and prohibited from rendering data transmission services;

(3) An entity who engages in the prohibited acts under Section 20 of this Act shall suffer a fine of at least Three hundred thousand pesos (P300,000.00) but not exceeding Five million pesos (P5,000,000.00): Provided, That if the DTIP has a gross annual income not exceeding Ten million pesos (P10,000,000.00), the imposable penalty shall be equivalent to one percent (1%) to two percent (2%) of its gross annual income, In cases of anti-competitive cross-subsidization, the imposable penalties shall be those provided under Republic Act No. 10667;

(4) A DTIP who commits at least three (3) violations of this Act shall forfeit all its certificates, licenses, authorizations, rights, and awards issued in relation to its participation in the data transmission industry; and

(5) A DTIP who commits any other violation of this Act that is not specifically prohibited under Section 20 shall be penalized with a fine of at least Fifty thousand pesos (P50,000.00) but not exceeding Two million pesos (P2,000,000.00).