THE Court of Appeals has directed the Philippine Competition Commission to file its comment on the plea of the Philippine Long Distance Telephone Co. seeking the issuance of a gag order in connection with the anti-trust body’s review of the acquisition of the telecommunication assets of assets of San Miguel Corp.
In an order dated Oct. 19, the CA’s Special 12th Division gave the PCC 10 days to respond to PLDT’s urgent motion for the issuance of a gag order, which the petitioner said is needed considering the sensitive nature of the acquisition and the high public interest in the case.
The appellate court also directed PLDT, Globe Telecom and PCC to submit their respective memoranda on the consolidated petitions of Globe and PLDT within 15 days, adding after the period, the case will be deemed submitted for resolution.
Globe earlier filed for the consolidation of its case with that of PLDT since it involved the same issues and parties.
PLDT’s case is now pending before the CA’s Special 12th Division which earlier issued an injunction stopping PCC from reviewing the P70-billion buy-out of SMC’s telecommunication assets by PLDT and Globe Telecom.
The injunction specifically enjoins the anti-trust body “from conducting further proceedings for the pre-acquisition review and/or investigation of the subject acquisition.”
The CA held that PLDT was able to prove it is entitled to the relief demanded and the investigation of the PCC would probably work injustice to PLDT.
Globe has filed a similar petition, which was raffled off to the CA’s Sixth Division that denied its prayer for issuance of a temporary restraining order.
In their separate pleas, PLDT and Globe questioned PCC’s investigation of their co-purchase of the telecommunications assets of San Miguel, arguing the deal has been deemed approved by operation of law since they have fully complied with the terms of the transitory circulars issued by the PCC.
PLDT also pointed out its subsidiary Smart has been implementing the transaction and using the frequencies as part of its nationwide rollout.
However, the PCC said a comprehensive review is necessary to identify the potential impact of the transaction on public welfare as well as determine its relevant market and whether it will result in substantial changes to the market structure or not.
The PC ordered the pre-acquisition review and investigation of the acquisition by PLDT and Globe of all the issuing and outstanding shares and assets of Vega Telecom Inc., a subsidiary of SMC.