Willem Cornelis Van Engelenburg and his brother Hendrikus Erik Van Engelenburg were killed when they tried to shoot it out.
"They drew their guns so we shot them," said Reynaldo Jaylo, chief of Presidential Task Force Hunter, which conducted the raid along with the Central Police District.
The raid was one of two simultaneous operations against cybersex dens owned by the Dutch brothers after weeks of surveillance and investigation, Jaylo said.
In the house where the shootout took place, agents found five women who told investigators they were paid to undress and perform sex acts in front of web cameras for clients mostly in the US, for payments of up to P50,000 a month.
Police swooped down on the house, located along Balete Drive, late Wednesday evening. Two caliber .45 pistols, computers, porn videos and sex toys were found there.
In the second apartment, police arrested the Filipino wife of one of the brothers, Maria Veronica Rellona, and Eduard Lagutan, who is suspected of being the cashier.
They also found two sex models there, police said.
Jaylo said the brothers often brandished their guns to scare the women into cooperating.