Telcos, PCC lock horns over frequency deal
A potential legal battle is brewing between the Philippine Competition Commission and the country’s telecommunications duopoly of Philippine Long Distance Telephone Co. and Globe Telecom over their recent acquisition of San Miguel Corp.’s telco unit.
PLDT and Globe insisted Monday their joint acquisition of San Miguel’s Vega Telecom Inc., which holds valuable radio frequencies, for P69.1 billion complied with regulations and was thus “deemed approved” and could no longer be challenged by the anti-trust regulator.
The PCC, in a statement, disagreed, noting that the telcos faced a possible violation of the Philippine Competition Act.
“The PCC denied their initial filing which was found to be defective and deficient. It is now up to the parties whether or not to comply,” it said on Monday.
“The PCC cannot further comment on the transaction because we have returned the parties’ submissions for non-compliance. As of this time therefore, there is no notice for the PCC to review. We emphasize that the transactions have not been deemed approved,” the newly-created government antitrust regulator added.
PLDT and Globe made their case in separate stock exchange filings on Monday, saying that their transaction notices fully complied with the PCC’s rules and there was no need to re-submit these.
“We have articulated our legal position in our letter to the PCC,” said PLDT regulatory affairs head Ray Espinosa.
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