Telco titans PLDT and Globe may be potentially embroiled in a legal battle with the Philippine Competition Commission (PCC) over its buyout of Vega Telecom Inc. and two other companies linked with San Miguel Corp, the main target of which was SMC’s valuable 700 megahertz frequency.
PCC claims that the required initial transaction notices by the two companies were deficient and defective in form and substance. But both PLDT and Globe maintain otherwise, saying that their respective notices underwent careful review and did not contain any false statements. PLDT further claims that their acquisition was already “deemed approved” and cannot be subject to a retroactive review by the commission. Globe holds a similar position, pointing out that the notice they sent to PCC was before the release of the IRR and thus can no longer be challenged.
Globe also pointed out that the implementing rules and regulation (IRR) of the Philippine Competition Act came out only on June 3, 2016 while the deal was done on May 30, 2016.
However, the PCC stated that even before the issuance of the IRR, the Competition Law is already considered in full effect. The PCC added that the mere filing of a notice does not automatically give a “deemed approved” status for the subject transaction since this is for the commission alone to determine. Under the Competition Law, the PCC has the power to stop and prohibit acquisitions that would substantially restrict or lessen competition.
