Marcoleta wants PCC, NTC to review ABS-CBN-TV5 partnership

SAGIP party-list Rep. Rodante Marcoleta has asked the Philippine Competition Commission (PCC) and the National Telecommunications Commission (NTC) to review the partnership agreement signed by ABS-CBN and TV5.

According to a report on “24 Oras”, Marcoleta said in a radio interview that the partnership should be probed for a possible circumvention of the law. He also said it may result in a monopoly in the media industry.

Earlier, the media networks announced their investment agreement.

“ABS-CBN Corporation and TV5 Network, Inc., announced today the execution of an Investment Agreement that will allow ABS-CBN to acquire 6,459,393 primary (new) common shares in TV5 representing 34.99% of the total voting and outstanding capital stock of TV5 for an aggregate subscription price of P2.16 billion,” the ABS-CBN said.

“Simultaneously with the execution of the Investment Agreement, the parties execute a Convertible Note Agreement pursuant to which ABS-CBN to invest in a Convertible Note with a face value of P1.84 billion to be issued by TV5. The Convertible Note will allow ABS-CBN, subject to obtaining applicable regulatory approvals, to acquire additional primary common shares of TV5 after 8 years from the issuance of the Convertible Note, and thereby increase its equity in TV5 to no more than 49.92 percent of the outstanding capital stock of TV5,” it added.

Marcoleta said the PCC should carefully review the agreement to ensure it is in accordance with the law as it may lead to a monopoly.

The PCC has yet to formally receive notification on the agreement but said it could direct its Mergers and Acquisitions Office to conduct an initial investigation.

“While the PCC determines whether the thresholds under Bayanihan 2 have been met, it may also direct its Mergers and Acquisitions Office to conduct an initial assessment if the effects of the transactions involving TV5 and ABS-CBN, and Cignal and SkyCable, warrant a motu proprio review. A merger review will determine if the transaction may result in a substantial lessening of competition in the relevant markets,” it said.

NTC Commissioner Gamaliel Cordoba, for his part, said the commission would review the partnership agreement due to the alleged violations of ABS-CBN.

GMA News has reached out to ABS-CBN and TV5 for their statements.

ABS-CBN previously denied it committed violations. —Sundy Locus/NB, GMA News