CA to PCC: Explain probe of P70-B telco deal

MANILA, Philippines - The Court of Appeals (CA) has ordered the Philippine Competition Commission (PCC) to justify its decision to investigate the buyout of the telecommunication assets of San Miguel Corp. (SMC) by industry giants PLDT Inc. and Globe Telecom Inc.

In separate resolutions released yesterday, the 12th and 6th divisions of the appellate court directed the PCC to answer the respective petitions filed by PLDT and Globe both questioning its comprehensive review of the P70-billion acquisition deal.

“Without necessarily giving due course to the instant petition…Philippine Competition Commission is directed to file a comment (not a motion to dismiss) within a non-extendible period of 10 days from notice and show cause why the petition with prayer for a temporary restraining order and/or preliminary injuction should not be granted,” the CA’s 12th division said in a resolution written by Associate Justice Ramon Bato Jr. on PLDT’s petition.

After submission of PCC’s comment, the PLDT was also ordered by the court to submit its reply after five days before the justices decide on whether to hold hearings or submit the case for decision.

The CA’s 6th division also gave the same order to PCC in the case of Globe.

But it denied petitioner’s request for issuance of a temporary restraining order against PCC’s investigation.

In a resolution, the court explained that for a restraining order to be issued, the right to be protected must exist and the acts sought to be restrained should be violative of that right.

“Mere allegations of the existence of the such requisites, absent proof, cannot be the basis for the issuance of an injunctive writ,” read the order penned by Associate Justice

Nina Antonio-Valenzuela.

PLDT and Globe filed their separate petitions before the CA two week ago.

According to the PCC, the comprehensive review would identify the potential impact of the transaction on public welfare as well as determine its relevant market and whether it would result in substantial changes to the market structure or not.  

Meanwhile, Globe remains hopeful of obtaining a favorable decision from the CA.

“We are still in the initial stage of the legal proceedings,” Globe general counsel Froilan Castelo said in a statement.

The Ayala-led telco issued the statement in response to PCC’s announcement on Friday that Globe’s application for a TRO against the government body’s review of the transaction with PLDT Inc. and SMC was rejected by the CA.

“The undue haste exhibited by the parties to run to the courts to stop PCC’s review is now confirmed as unjustified. The court’s decision further serves to strengthen the PCC’s resolve to closely scrutinize this transaction and examine any possible adverse effects on public welfare,” PCC said.

PLDT’s lawsuit to stop PCC’s review of the transaction is still pending with the CA.

Globe and PLDT’s transaction with SMC involved the  purchase of the entire equity interest in the latter’s telco assets such as Vega Telecom Inc., New Century Telecoms Inc. and eTelco Inc. for P70 billion. – With Louella Desiderio