The Market Monitor Minding the Nation's Business
By Riza Lozada
The Court of Appeals (CA) has given the Philippine Competition Commission (PCC), the state anti-trust body, until Oct. 29 to reply to the urgent motion of Philippine Long Distance Telephone Co. Inc. (PLDT) for the issuance of a gag order in relation to the review of the P70-billion mega deal involving the acquisition by PLDT and Globe Telecom of the telecommunication assets of San Miguel Corp.
PLDT petitioned the CA last Sept 30 to stop the PCC from issuing statements about the review of the mega deal in relation to PLDT’s and Globe’s petition against the PCC probe filed last July.“Due to the sensitive nature of the acquisition, and the high public interest in this case, PLDT is concerned of the possible prejudices and influences that may seep into this Honorable Court’s deliberation,” PLDT said in its motion.PLDT also asked the court to cite PCC in contempt if the agency continued to make statements about the issue.
In the same order, the appellate court also directed PLDT, Globe Telecoms and the PCC to submit within 15 days their respective memoranda on the consolidated petitions of Globe and PLDT after which the case would be deemed submitted for resolution.
Globe earlier filed for the consolidation of its case with that of PLDT as it involved the same issues and parties.
PLDT’s case is now pending before the CA’s Special 12th Division, which earlier stopped the PCC from reviewing the P70-billion buy-out of SMC’s telecommunication assets by PLDT and Globe Telecoms.
The August 26 order specifically enjoined the anti-trust body “from conducting further proceedings for the pre-acquisition review and/or investigation of the subject acquisition.”
The appellate court said PLDT was able to prove that it was entitled to the relief demanded and that the investigation of the PCC would probably work injustice to PLDT.
Globe has filed a similar petition, which was raffled to the CA’s Sixth Division that denied its petition for a temporary restraining order.
Earlier, in their separate pleas, PLDT and Globe questioned the PCC’s investigation of their co-purchase of the telecommunications assets of San Miguel, arguing that the deal had been deemed approved by operation of law since they had fully complied with the terms of the transitory circulars issued by the PCC.
PLDT also pointed out that its subsidiary Smart has been implementing the transaction and using the frequencies as part of its nationwide rollout.
But the PCC said a comprehensive review was necessary to identify the potential impact of the transaction on public welfare as well as determine its relevant market and whether or not it would result in substantial changes to the market structure.
It has ordered the pre-acquisition review and investigation of the acquisition made by PLDT and Globe of all the issuing and outstanding shares and assets of Vega Telecom Inc., a subsidiary of SMC.