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Wednesday, May 22, 2024

Probe of P69-b telco deal still stopped

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A DIVISION of the Court of Appeals has allowed the Philippine Competition Commission to investigate the P69-billion sale of San Miguel Corp.’s spectrum in the 700-megahertz band to Globe Telecommunications Inc. and Philippine Long Distance Telephone Co. 

But while the court’s Sixth Division denied the plea of Globe to stop the probe, the PCC still cannot proceed with the investigation because the court’s 12th Division had already issued a preliminary injunction which PLDT sought on Aug. 26.

The appellate court has since consolidated the separate petitions of Globe and PLDT and that effectively means the 12th Division will be the court to resolve the merits of PLDT and Globe’s petitions.

The PCC has questioned the consolidation of the two petitions in an appeal, but the objection was overruled by the Sixth Division in the latest order.

“The Court denies the respondent Philippine Competition Commission’s Motion for Reconsideration praying that we set aside the Resolution promulgated 28 July 2016 which granted petitioner Globe Telecom Inc.’s Urgent Motion to consolidated, and ordered that this case be consolidated with CA-GR SP-146528 entitled PLDT vs. PCC,” the appellate court stressed.

Associate Justices Jane Lantion and Fernanda Lampas-Peralta concurred in this ruling.

In their separate petitions filed before the CA last July, Globe and PLDT questioned PCC’s investigation of their co-purchase of the telco assets of San Miguel because they had supposedly complied with the requirements of the PCC.

PLDT further argued that its wireless subsidiary Smart has been implementing the transaction and using the frequencies as part of its nationwide rollout and warned a reversal of the transaction would result in irreparable and incalculable injury to the public service.

For its part, PCC asserted that the comprehensive review is necessary as it would identify the potential impact of the transaction on public welfare as well as determine its relevant market and whether it will result to substantial changes to the market structure or not. 

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