CA affirms halt on probe of telco buyout deal

The Court of Appeals (CA) stood firm on its order stopping the Philippine Competition Commission (PCC) from probing the buyout of telecommunication assets of San Miguel Corp. (SMC) by industry giants PLDT Inc. and Globe Telecom.

In a resolution, the special 12th division of the appellate court affirmed the writ of preliminary injunction it issued in August last year that specifically enjoined the anti-trust body “from conducting further proceedings for the pre-acquisition review and/or investigation of the subject acquisition.”

The CA denied the PCC’s appeal to lift the halt order and proceed with its investigation into the P70-billion buyout deal.

It reiterated that the injunction order was necessary “to preserve the rights of the parties during the pendency of the instant petition and not to render ineffectual whatever judgment that may be rendered by this court.”

In the same ruling, the CA issued a gag order directing the PCC to remove immediately from its website its Preliminary Statement of Concern (PSOC), which contained an initial finding that the deal “is likely to substantially prevent, restrict and lessen competition” within the industry.

“Applying the sub judice rule, PCC should immediately remove its PSOC posted in its website and refrain from making comments on the subject acquisition while the case is pending in court,” read the latest ruling penned by Associate Justice Ramon Bato.

It also directed PLDT and Globe to cease and desist from issuing public comments and statements that would violate the sub judice rule and subject them to indirect contempt of the court.

“Likewise, to be fair, PLDT should also refrain from making comments on the subject acquisition and desist from communicating their opinion to the public during the pendency of this case,” it added.