‘reasonable grounds’ to probe DITO’s complaints vs. telcos
By Nidz Godino
“The PCC Enforcement Office ,CEO will look into allegations in complaints for possible violations of Section 15 of the Philippine Competition Act pertaining to abuse of dominance… CEO will also study whether other violations of PCA pertaining to anti-competitive agreements have been committed,” Philippine Competition Commission (PCC) would start preliminary inquiry into anti-competitive complaints filed by DITO Telecommunity Corp. against Smart Communications Inc. and Globe Telecom Inc.
In a statement as regards DITO’s complaints, antitrust watchdog “found reasonable grounds to open preliminary inquiry.”
Earlier, DITO filed complaints before PCC, citing interconnection issues with Smart and Globe and accusing the two companies of abuse of dominance.
“As it proceeds with investigation, PCC will coordinate and consult with National Telecommunications Commission and other relevant authorities for regulatory and technical considerations,” it stressed.
The PCC took complaints of anti-competitive behavior “very seriously.”
“Without prejudging outcome of the CEO’s investigation, the PCC reminds players with substantial market power, not only in the telecommunications industry but across sectors, of their responsibility to compete fairly and to adhere to the principles of competition,” it said.
Globe and Smart have fired back against DITO accusing the new major telco of avoiding to payment of penalties which resulted from fraudulent calls or international simple resale (ISR) calls identified as international in origin but masked as local calls placed through DITO’s network and bypassing proper voice traffic channels.
DITO has since denied that ISR calls are not made by the company but were fraudulent calls made by third parties.
Globe and Smart welcomed inquiry by PCC.
“While we have yet to receive copy of DITO’s complaint before PCC, as a publicly-listed company, Globe maintains that fair and healthy competitive environment is necessary to promote consumer welfare,” Globe said.
“Specifically, Globe welcomes opportunity to present to PCC how DITO violated terms and conditions of its Interconnection Agreement with us which prompted filing of previous case with NTC…likewise, we reiterate our view that this is clear case of forum shopping since similar case for the same issues is pending with NTC,” the Ayala-led telco said.
Smart, likewise, “welcomes opportunity to reaffirm before PCC its commitment to fostering healthy competition in the telecom sector, and affirms its willingness to assist and cooperate in preliminary inquiry that the PCC’s Competition Enforcement Office has announced in relation to reported DITO Telecommunity Corporation complaint.”
Smart pointed out “DITO must first address serious and continuing deficiencies in its own network that have allowed criminals to abuse interconnection facilities by fraudulently masking international calls as domestic, thereby prejudicing Smart subscribers who are victimized by scams, and depriving government of tax revenue, and Smart of toll income.”
“Smart is confident that PCC will, in due course, clear it of any wrongdoing in respect of DITO’s reported complaint,” the Pangilinan-led telco said.
In response to PCC’s opening of probe, DITO chief administrative officer Adel Tamano said telco welcomed “PCC finding reasonable grounds to move forward with DITO’s complaint against Globe and Smart for their abuse of dominant position, which undermines competition.”
“From onset this case has not been about mere commercial terms but rather is about public interest in interconnection between telco players and fostering genuine competition in the industry,” Tamano concluded.
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