PCC chides telcos for asset buyout

MANILA, Philippines - The Philippine Competition Commission (PCC) has criticized industry giants Globe Telecom Inc. and PLDT Inc. for completing the last tranche of payment for their P69.1-billion joint acquisition of San Miguel Corp. (SMC)’s telco assets.

The PCC said yesterday it stands by its position Globe and PLDT should not have proceeded with the payment of their final installment on the telecom deal due to pending cases at the Supreme Court (SC) and Court of Appeals (CA).

“Completing the payment for the telco assets is a move that unduly preempts the forthcoming rulings of the SC and CA,” it said.

“The PCC may be fairly new and companies are still adjusting to the regulatory framework of the Philippine Competition Act, but they must strictly adhere to the law. Globe and PLDT should not be exempted,” the antitrust authority added.

Globe and PLDT were set to pay the third and last tranche of payment worth P13 billion to SMC on May 30. Officials from both companies have confirmed the completion of the payment was made.

The PCC had earlier cautioned Globe and PLDT on making their final payment, saying it is “unwise” considering pending cases before the SC and CA.

PCC had urged both firms to give due respect to the SC and wait for it to decide on the petition that will allow the competition authority to review the P70-billion deal.

“As with any transaction required to be notified to PCC, the P69.1-billion deal needs to be reviewed through a market competition lens to safeguard consumer welfare over the long term,” the PCC said.

“While PCC guarantees fair evaluation for every notification, compliance with the law should nevertheless be complete and transparent. Notifications should not be filed merely for the sake of submission,” it added.

If only the parties submitted the required notification, the PCC said its telco deal review would have been completed earlier.