Globe said this would help “prevent, restrain and punish monopolization, cartels and combinations in restraint of trade.”
The Globe statement was seen by observers as a strong reference to its opposition to the deal between the Philippine Long Distance Telephone Co. (PLDT) and third-ranked Digital Telecommunications Philippines Inc. that would give the two companies about two-thirds of the entire Philippine market that Globe said would place fair competition in jeopardy.
President Aquino’s EO 45 designates the DOJ as the country’s “competition authority” to “investigate all cases involving violations of competition laws and prosecute violators to prevent, restrain and punish monopolization, cartels and combinations in restraint of trade.”
As this developed, Malacañang reassured PLDT chairman Manuel V. Pangilinan that the protection of consumer rights would be the primary consideration in the government’s assessment of the PLDT’s proposed acquisition of Digitel.
Of EO 45, Globe president Ernest Cu said, “It’s about time the government issued this order.”
“It’s a step to what we are asking. What we are asking for is that there should be automatic ways to ensure that competition is preserved in any industry, which means, if the transactions of this nature are to occur, there should be automatic check and balances to ensure that competition will continue,” he said. “We want to see that mechanisms kicked in on its own without the telco industry having to lobby and raise the issue like it is today. So, it is a step.
“It’s an evolution of any economy to have these rules. It’s just getting to that point. We never believe that any monopolistic type of business is sustainable, unless you’re a monopolist,” Cu said.
Globe legal counsel Rodolfo Salalima said the DOJ should act swiftly to prevent the PLDT-Digitel deal from resulting in a telecom-market player so big as to have the power and means to effectively stifle competition.
Salalima said Globe has always warned against the possible return of monopoly with the PLDT-Digitel deal because it will result in one company cornering the bulk of a very limited spectrum of frequencies.
“With so much clout, significant market power and influence now consolidated and vested in the PLDT group, free competition is threatened and ultimately the public good is gravely placed at risk,” he said.
The Malacañang reassurance to PLDT came after Pangilinan called on the government to “adhere to the principle of protecting consumers, rather then market rivals” in its assessment of the PLDT-Digitel merger.
Asked whether it was fair for Pangilinan to make the call, since the President had already made such an assurance at the start, Secretary Ramon Carandang of the Presidential Communications Office said, “There’s no disagreement on consumer rights being the concern of the government.”
On whether Malacañang considered Pangilinan’s statement as fair, since it seemed to imply that the administration was inclined to protect Globe, Carandang said, “Our assurance is that we will act foremost in the interest of the public, regardless of what anyone tries to imply.”
When the reports on the proposed merger was made public in April, the President said he was “concerned” enough to order its review to ensure a level playing field.
(With Mia M. Gonzalez)
