CA orders PCC, Globe, PLDT to wrap up arguments on P70B SMC telecom buyout

The Court of Appeals (CA) is a step closer to resolving the consolidated petitions hurled by PLDT Inc. and Globe Telecom Inc. at the antitrust commission reviewing the P69.1-billion co-acquisition of San Miguel Corp.'s telecom business.

The CA Special 12th Division directed Globe, PLDT, and the Philippine Competition Commission (PCC) to submit their respective comments on the case.

"All parties are directed to submit simultaneous memoranda within a non-extendible period of 15 days from notice, Thereafter, with or without their respective memorandum, the instant cases are submitted for decision," the CA said in an October 19 resolution.

The resolution was released on Thursday.

Globe and PLDT said separately noted they will comply with the latest appellate court order.

"We are going to comply, of course. We cannot give comments on the issue, kasi its a legal matter – baka ma-contempt kami," Globe Vice President Yoly Crisanto said.

"Obviously, we will comply," PLDT spokesperson Ramon Isberto said.

The appellate court ordered commission to comment within 10 days on PLDT's motion to stop the government from talking about the case.

The PCC has said it will file, through the Office of Solicitor General, a "strong opposition" to PLDT's plea.

“The PCC believes that a blanket prior restraint on any discussion regarding a matter of vital public interest is not only unwarranted but also dangerous. The PCC will therefore ask the CA to continue to safeguard the right of the public to be informed on matters that greatly affect them,” PCC spokesperson Leni Papa said in a statement on October 13.

The co-acquisition deal covers the purchase price of P52.08 billion for SMC unit Vega Telecom and the assumption of around P17.02 billion in liabilities.

Vega Telecom owns controlling interests in Bell Telecommunication Philippines Inc., Eastern Telecommunications Philippines Inc., Cobaltpoint Telecommunication Inc. (Formerly Extelcom), Tori Spectrum Telecommunication Inc. (formerly Wi-Tribe), and Hi-Frequency Telecommunication Inc.

Globe and PLDT have emphasized that the transaction was above board and did not violate any provisions of the country’s Philippine Competition Act.

The PCC, however, said a review was warranted in order to protect consumers and promote market competition.

The CA issued earlier a writ of preliminary injunction against the planned review by the antitrust body. — With Ted Cordero/VDS, GMA News