The Philippine Competition Commission (PCC) revealed Thursday that it was not consulted by MediaQuest Holdings, the operator of TV5; and ABS-CBN Corp. in relation to their investment agreement.
PCC officer-in-charge and chairperson Johannes Bernabe said the commission has not received notification from the two companies on the reported “sale and purchase agreement” involving their respective cable companies.
The transaction refers to ABS-CBN Corp.’s acquisition of 34.99 percent of TV5’s shares for P2.16 billion, as well as Cignal Cable Corp.’s acquisition of 38.88 percent of Sky Cable Corp. for P2.862 billion.
“Transactions that meet the P50-billion thresholds set by the Bayanihan to Recover as One Act (Bayanihan 2) are required to be notified to the PCC for review to ensure that there is no harm to competition and detriment to consumer welfare,” Bernabe said.
“With the lapse of the period set under Bayanihan 2 on 15 September, the PCC notification thresholds will revert to appropriately lower levels that reflect the relative size and performance of the economy. While the PCC determines whether the thresholds under Bayanihan 2 have been met, it may also direct its Mergers and Acquisitions Office to conduct an initial assessment if the effects of the transactions involving TV5 and ABS-CBN, and Cignal and SkyCable, warrant a motu proprio review,” he added.
A merger review will determine if the transaction may result in a substantial lessening of competition in the relevant markets, the PCC chief said. He maintained that the PCC’s mandate to review mergers and acquisitions is centered on protecting consumers from transactions that may result in unchecked market power.
“Mergers and acquisitions often mean fewer choices for consumers. Lack of competition may lead to higher prices or lower quality products and services, all to the disadvantage of consumers,” Bernabe stressed.
Meanwhile, SAGIP partylist representative Rodante Marcoleta has sought a congressional probe on the deal, claiming it may be an attempt to circumvent the law.
Marcoleta, a staunch critic of ABS-CBN, said that aside from the PCC, the deal should also be investigated by the National Telecommunications Commission for possible violation of the anti-trust law.
“What I see is some kind of circumvention of the law in this sudden joint venture between ABS-CBN and TV5,” he said in a radio interview on Wednesday.
“TV5, that’s big, as well as ABS-CBN. The (media) industry would be monopolized. Does the Philippine Competition Commission have any say on this? This shouldn’t be the case,” said Marcoleta.
The NTC should also investigate ABS-CBN’s possible violations and impose concomitant administrative fines because of such violations.
AND RAFFY AYENG
@tribunephl_mish @tribunephl_raf