Business

Anti-trust body raises competition concerns after ABS-CBN shutdown

The Philippine Competition Commission has raised serious concerns about the future of the broadcasting industry, fearing the denial of ABS-CBN Corp.’s franchise application may stifle competition and raise prices for consumers.

The Philippine Competition Commission has raised serious concerns about the future of the broadcasting industry, fearing the denial of ABS-CBN Corp.’s franchise application may stifle competition and raise prices for consumers.

Benjamin Radoc Jr., PCC director for Economics, said there was a risk that the exit of ABS-CBN could result in higher commercial prices and low quality services.

“At this point, what we need to be wary about in terms of the exit of ABS-CBN, would be on the behavior of the large market players that are remaining. With the exit of a major market player, there might be a tendency for commercial fees, for example, be higher or quality could be compromised,” he said.

At present, the industry is dominated by GMA Network Inc., which enjoyed an audience share of 63% in January to July, according to Nielsen.

The exit of ABS-CBN is seen to lead to a market monopoly of GMA, led by the Gozon-Duavit-jimenez triumvirate.

The main role of the PCC is to level the playing field and ensure efficient and fair market competition in the economy.

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