A lawmaker said Tuesday PLDT Inc.’s alleged plan to acquire Sky Cable Corp. will reduce competition in the pay television market.
“There will surely be serious concerns about the business combination, potentially reducing market competition and increasing the market power of the acquirer,” said Deputy Speaker and Surigao del Sur Rep. Johnny Pimentel.
“The deal may easily be construed as buying out the competition in order to kill it,” he said.
“Assuming the transaction pushes through, we would expect it to be thoroughly scrutinized by antitrust regulators, who are there to ensure fair market competition for the benefit of consumers,” Pimentel said.
Under the law, business merger or acquisition agreements may not be consummated without the approval of the Philippine Competition Commission, which may reject transactions that prevent, restrict or lessen market competition.