Telecommunications giant PLDT Inc.’s plan to acquire Sky Cable Corp. is bound to run into antitrust obstacles, Deputy Speaker and Surigao del Sur Rep. Johnny Pimentel said on Tuesday.
“There will surely be serious concerns about the business combination potentially reducing market competition and increasing the market power of the acquirer,” Pimentel said.
“The deal may easily be construed as buying out the competition in order to kill it,” Pimentel said.
“Assuming the transaction pushes through, we would expect it to be thoroughly scrutinized by antitrust regulators, who are there to ensure fair market competition for the benefit of consumers,” Pimentel said.
Under the law, business merger or acquisition agreements may not be consummated without the approval of the Philippine Competition Commission, which may reject transactions that prevent, restrict or lessen market competition.
Pimentel expressed concern that PLDT might acquire and then simply shut Sky Cable down.
“After all, PLDT is in a position to conveniently replace all the products, including the high-speed Internet services, being offered by Sky Cable,” Pimentel said.
President Rodrigo Duterte enabled the entry of a third major telecommunications service provider – DITO Telecommunity Corp. –precisely to boost competition, particularly in the delivery of superior Internet services, Pimentel pointed out.
“Existing Sky Cable subscribers might simply become PLDT Fiber and CIGNAL subscribers overnight,” Pimentel said.
PLDT also controls direct-broadcast satellite TV provider CIGNAL TV Inc. which competes with Sky Cable.
“PLDT regularly explores opportunities available to the group that may complement our overall business strategy. As such, PLDT is evaluating options with respect to Sky Cable for possible opportunities. However, there is nothing definite nor disclosable at this time,” PLDT told the Philippine Stock Exchange on Monday.
