PCC to take necessary legal steps in SMC telco buyout

The Philippine Competition Commission on Monday said it will take the necessary steps in pursuit of its mandate to review the P69-billion co-acquisition by PLDT Inc. and Globe Telecom Inc. of San Miguel Corp.'s telecommunications business as internet and mobile services remain slow, expensive, and of poor quality more than a year after the deal was forged.

"We are firm in our resolve to perform our mandate under the law. We note that a year after the sale, the public continues to complain of slow, expensive and poor quality of internet and mobile services," it said in an emailed statement.

The commission issued the statement after the Court of Appeals (CA) made public a ruling that affirmed the legality of the P69.1-billion deal by Pangilinan-led PLDT and Ayala-led Globe involving the telecommunications business of San Miguel.

"The Philippine Competition Commission has yet to receive the official copy of the decision from the Court of Appeals. Rest assured, however, that we will take the appropriate legal steps to move this multi-billion acquisition case forward," the PCC said.

In the same statement, the antitrust commission noted its mandate to review business deals worth P1 billion and above to ensure that market competition remains healthy.

"The Philippine Competition Commission is a national government agency duly mandated by law to review mergers and acquisitions for their possible negative impact on fair competition," it said.

The CA stopped the PCC last year from reviewing the P69.1-billion deal through a preliminary injunction issued by the 12th Division.

"If anything, this has further fueled our determination to safeguard the market and promote the interests of consumers," the PCC said.

Both PLDT and Globe fully paid the acquisition cost on May 30 this year, a year after the transaction was announced. — VDS, GMA News