PLDT INC. and Globe Telecom on Thursday said they had resubmitted their respective transaction notices to the government antitrust watchdog, which raised questions over the manner they had filed the notice on their joint acquisition of San Miguel Corp.’s telecommunications unit on May 30.
The notice was a key step required by circulars issued by the Philippine Competition Commission, whose implementing rules came out days after the P70-billion deal between PLDT, Globe and SMC was sealed. The rules, which outline how the PCC can scrutinize the transaction, would take effect on June 20 this year.
Both PLDT and Globe maintained their original stance that the notices were filed on May 30 and that the deal was deemed approved and could no longer be challenged by the PCC.
The added documents were given “as a matter of respect” to the competition regulator, Globe General Counsel Froilan Castelo said.
“To resolve that issue, we have resubmitted the documents to the PCC just to comply with the supposed deficiency without abandoning our original position that we have filed the notice on May 30,” Castelo said.
He said the “resubmission” was made June 15. This included certifications signed by him and Globe’s external counsel that the deal, which mainly involved San Miguel’s valuable but unused radio frequencies, was not anti-competitive.
Ray C. Espinosa, PLDT head of legal and regulatory group, said the telco made separate submissions to the PCC on Thursday afternoon.
“We are returning the notice that they have returned to us along with certain documents that they have requested,” Espinosa said.
The PCC on June 13 issued a warning to PLDT and Globe, stating that they were potentially violating the Philippine Competition Act, and were facing possible fines.
“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 PCC said in its June 13 statement.
Both PLDT and Globe jointly acquired SMC’s Vega Telecom, the holding company for the conglomerate’s radio frequencies, including the coveted 700 megahertz band.