Comment to PLDT and Globe's Acquisition of Vega, Bow Arken, and Brightshare

Abstract

This paper was submitted to the Philippine Competition Commission ("PCC") on 08 August 2016 in response to its call for comments on whether the co-acquisition by Philippine Long Distance Telephone Company ("PLDT") and Globe Telecom ("Globe") of Vega Telecom, Bell Telecommunication Philippines, and Eastern Telecom will substantially prevent, restrict, or lessen competition in the relevant market or adversely impact consumer welfare. The PCC's authority to review the transactions has been met with strong resistance by PLDT and Globe, who together control 99.9% of the market for mobile telecommunications in the Philippines. With the PCC's first set of commissioners appointed only last January 2016, the transactions pose as the first real challenge to the PCC's mandate of enforcing the country's competition policy, particularly in the highly concentrated mobile telecommunications market.