MANILA - Globe Telecom and Philippine Long Distance Telephone Co. (PLDT) "erroneously interpreted" rules by insisting that their acquisition of San Miguel Corp.'s telecommunications assets was good as approved by merely notifying the government, the state anti-trust watchdog said Thursday.
The country's two dominant carriers did not provide "key terms" of the P70-billion deal, the Philippine Competition Commission said, adding this prevented the transaction from being granted a "deemed approved" status.
"Globe and PLDT erroneously interpreted the rules as vesting in them the sole prerogative to determine sufficiency of their submission and automatic approval of their own transaction," the PCC said in a statement.
Last week, Globe and PLDT asked the Court of Appeals to stop the PCC's review of the acquisition, which effectively stopped the entry of a third player in the industry.
The two companies' refusal to participate in the review prompted the PCC to seek comments from the public, it said.
"This is also consistent with global best practice. If there is nothing irregular in this transaction, the parties should welcome inputs from various stakeholders," it said.