Globe, PLDT may have violated the competition law – PCC

Provisions of the Philippine Competition Act may have been violated by telcos involved in the P69.1-billion acquisition deal for the telecom business of San Miguel Corporation, the Philippine Competition Commission (PCC) said on Monday.

Globe Telecom Inc. and PLDT Inc. may have failed to comply with the guidelines of the PCA, the commission said.

Citing Section 17 of the Philippine Competition Act (PCA), the PCC noted "an agreement consummated in violation of this requirement to notify the Commission shall be considered void and subject the parties to an administrative fine of one percent (1%) to five percent (5%) of the value of the transaction."

Over the weekend, the anti-trust watchdog rejected the initial notice filed by PLDT and Globe, noting it was "deficient and defective in form and substance..." effectively making the transaction not "deemed approved" by the commission.

The companies, however, maintained that the transaction was made final on grounds that the notice sent to the commission did not contain any false information. Globe and PLDT claimed it was the only premise for disapproval.

The PCC emphasized it has not yet reviewed and approved the transaction.

"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," the commission said.

"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," it added. – Jon Viktor Cabuenas/VDS, GMA News