Globe, PLDT warned of possible violations of PH Competition Act

MANILA - The Philippine Competition Commission (PCC) on Monday warned Globe Telecom and the Philippine Long Distance Telephone Co. (PLDT) of possible violations of the Philippine Competition Act in relation to their joint purchase of San Miguel Corp.'s telecommunications assets.

In a statement, PCC cited Section 17 of the Philippine Competition Act (PCA), which states that "an agreement consummated in violation of this requirement to notify the Commission shall be considered void and subject the parties to an administrative fine of 1 percent to 5 percent of the value of the transaction."

The PCC had denied the initial filing of Globe and PLDT, which it said was found to be "defective and deficient."

"It is now up to the parties whether or not to comply," PCC said.

The newly formed agency said that while Globe and PLDT had filed new submissions consisting of new materials, they "continue to deny that these constitute a refiling."

"The PCC cannot further comment on the transaction because we have returned the parties' submissions for non-compliance. As of this time therefore, there is no notice for the PCC to review. We emphasize that the transactions have not been deemed approved," PCC said.

PCC earlier told the two companies that the P70-billion acquisition could not be considered approved based solely on a notice of transaction that they filed.

On Monday, shares of both Globe and PLDT fell.

READ: Globe, PLDT shares fall as regulator questions San Miguel deal

Globe was down 0.42 percent to P2,360 while PLDT was down 1.85 percent P2,016.