Prospects for a speedy resolution to issues hanging over the acquisition of San Miguel Corp.’s telco assets vanished Tuesday as joint-buyers PLDT and Globe Telecom sued the government antitrust body for launching a review into the P70-billion deal.
PLDT and Globe filed at the Court of Appeals a petition for certiorari against the Philippine Competition Commission (PCC), according to separate announcements made Tuesday.
They also sought a temporary restraining order or writ of preliminary injunction in a bid to stop the PCC’s investigation into the May 30, 2016, transaction, which involved SMC’s unused but valuable radio frequencies.
At the heart of the issue was whether the deal required the government’s approval. Globe and PLDT argued that it did not since the deal was sealed before the PCC’s implementing rules came out and took effect on June 20. They argued that the deal was covered only by transitory guidelines that required a transaction notice to be filed. Globe and PLDT said they fulfilled this requirement and automatic approval should be granted.
The PCC, on the other hand, said the competition law was in full effect last year and it was their mandate to review the transaction, given that it was “an issue which is of great importance to public interest and welfare.”
The filings Tuesday came days after the PCC held a dialogue with SMC, PLDT and Globe mainly to enlist their support for its review. On Monday, the PCC started collecting comments from the public, with the intention of doing so until early next month.
The PCC, led by Chair Arsenio Balisacan, said Tuesday that Globe and PLDT’s actions would only delay the issue.
“We are disappointed that they have decided to resort to a lawsuit against the PCC to prevent a comprehensive review of this deal,” the PCC said.
“While the PCC is working on an expedited basis to complete the review as quickly as possible, PLDT in their recent action have now sought to delay resolution of an issue, which is of great importance to public interest and welfare,” it added.