The Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom (PSE: GLO) remained firm on their stand regarding their P70 billion buyout deal with San Miguel Corp.’s (SMC) Vega Telecom Inc. (VTI).
Both firms said the Philippine Competition Commission (PCC) had no power to invalidate the sale.
In two separate statements, PLDT and Globe reiterated the buyout was deemed approved.
Both companies aimed for VTI’s radio frequencies and 700 megahertz band, which can improve Internet connection services in the country.
PLDT and Globe announced their joint acquisition of VTI on May 30 but PCC initially rejected their notice, even before the announcement, as reported by The Philippine Daily Inquirer. The commission asked both parties to resubmit notice.
PCC reasoned that the initial notice is "deficient and defective in form and substance" thus, the commission rejected the joint deal.
Meanwhile, PLDT and Globe rejected the request to resubmit notice.
"(Our notice’s) supposed deficiency in form and substance is not a ground to prevent the transaction from being deemed approved," Rappler reported Globe as saying. Globe also added that the notice was filed before the release of the Philippine Competition Act, or Republic Act No. 10667’s implementing rules and regulations.
PLDT noted that its co-acquisition of SMC with Globe was considered approved.
"(It) cannot be subject to retroactive review by the Commission," PLDT added.
However, PCC has the power to stop deals that it determined would "substantially" lessen or restrict competition. This is to prevent any forms of abuse of certain parties dominating the market.
"The PCC cannot further comment on the transaction because we have returned the parties' submissions for non-compliance," The commission said in a statement. "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.