Globe asks NTC to junk predatory pricing charges

Globe Telecom has asked the National Telecommunications Commission (NTC) to dismiss the charges for predatory pricing filed by Pilipino Telephone Corp. (Piltel) against the Ayala-owned phone firm.

In a filing with the NTC, Globe said the two letter-complaints of Piltel filed last July contained exactly the same allegations, involve the same parties, subject matters and issues. Thus, Piltel violated the rules against forum-shopping and splitting a single cause of action, said Globe.

“Where there is one direct or wrong, there is but a single cause of action regardless of the number of rights violated belonging to one person. All such rights should be alleged in a single complaint; otherwise they are barred forever,” Globe said.

In its complaint, Piltel said Globe was engaged in predatory pricing when it replaced its ‘Unlimitxt’ pricing scheme last February.

‘Unlimitxt’ was replaced with All-Day Unlimited Texting (P20 for one day, P40 for two days and P80 for four days); Daytime Unlimited Texting (P15 for one day, P30 for two days); Nighttime Unlimited Texting (P10 for one day, P20 for two days); and Unlimited Texting Plus Discounted Inter-carrier SMS Rate or TXTPLUS (plus P25 for one day, plus P50 for two days).

Piltel said the cellular firm effectively increased the text-messaging rates and asked the NTC to order Globe to reinstate its ‘Unlimitxt’ rates priced at  P15 for one day, P25 for two days and P50 for five days.

“This is clearly a violation of NTC 2002 circular. The fact that (Globe) unilaterally ceased offering its “Unlimitxt’ after a short period of time and replaced it with promotional offerings with marked higher prices prima facie establishes that (Globe) engaged in predatory pricing,” said Piltel.

But Globe had asked the NTC to dismiss Piltel’s complaint.  Two weeks ago, however, the NTC denied Globe’s motion to dismiss and granted Piltel’s motion for judgment on the pleadings. In issuing the order, the NTC reasoned that there could be no forum-shopping on the part of Piltel because there is only one forum involved, which in this case is the NTC. And, in granting Piltel’s motion, a NTC hearing officer declared that Globe can no longer be allowed to file a supplemental answer.

Piltel argued that there is no forum shopping since the cases were filed in one and the same forum. “Piltel is not shopping for a favorable forum because the cases were filed in only one forum, the NTC,” it said.

When Piltel filed its motion to intervene last July 20, Globe was asked by the NTC on Aug. 7 to comment on a verified complaint by Piltel against Globe, which complaint is incidentally dated also as July 20.

“While Globe insists that the prayer is the same, this can only be based on the fact that Globe has the propensity to violate the rules of the NTC against predatory pricing and unfair trade competition. Clearly, the allegations in these complaints refer to two different promos of Globe, which violate the same administrative proscription,” Piltel had said.

But according to Globe, this is “fallacious reasoning,” because the law does not quantify that the other action should be in another or separate court, tribunal or quasi-judicial  agency.

“Piltel cannot escape   liability  from the sanctions provided for by the rules against forum shopping and splitting a cause of action as the same are applicable to motions to intervene such as the one now in issue and filed by Piltel,” Globe said.