DoJ urged to follow lead of US justice department

Ayala-led Globe Telecom has urged the Department of Justice (DoJ) to follow the lead of its counterpart in the United States in opposing a planned merger that will create a monopoly in the telecommunications market.

The DoJ, the company said, was recently named the country’s “competition authority” and should live up to the new mandate it received from President Aquino.

“Government intervention is necessary to ensure that there is a level playing field and allow healthy competition to boost the quality of services for the benefit of consumers,” the company said in a statement.

The merger between Philippine Long Distance Telephone Co. (PLDT) and Digital Telecommunications Philippines Inc. (Digitel) is currently awaiting the green light from the National Telecommunications Commission (NTC).

The US Justice Department last week filed a civil antitrust lawsuit at the US District Court in Washington against AT&T’s $39-billion purchase of T-Mobile USA.

Despite the absence of an anti-trust law in the Philippines, Globe said the US government’s decision should be seen as an input to the Aquino administration’s strong anti-monopoly stance.

This is aligned with the President’s “matuwid na daan,” or straight path, approach to issues involving corruption and the protection and promotion of public interest.

Based on reports, the US justice department said the proposed merger would “stifle competition and lead to higher wireless prices, less innovation and fewer choices for consumer.”

“Tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” the Federal government said.

Globe has been quick to point out the similarities between the AT&T-T-Mobile merger, under review by the Federal Communications Commission, and the PLDT-Digitel merger.

AT&T, one of the biggest networks in the US, is taking over T-Mobile, which has been described as a “disruptive” competitor.

The P74.1-billion merger plan between PLDT and Digitel will give the group a market share of 70 percent.

On June 9 this year, President Aquino signed Executive Order No. 45 designating the Department of Justice as the Competition Authority. The Office of the Secretary of Justice was ordered “to carry out duties and responsibilities such as the investigation of all cases involving violations of competition laws… to protect consumers from abusive, fraudulent or harmful corrupt business practices.”