SC junks quo warranto complaint vs ABS-CBN
Published Jun 23, 2020 12:00 am
By Rey Panaligan
The Supreme Court (SC) on Tuesday (June 23) declared moot and dismissed the quo warranto case filed by the Office of the Solicitor General (OSG) against television network ABS-CBN Corporation.
This view shows the ABS-CBN network headquarters in Quezon City in the Metro Manila area on May 5, 2020. (Photo by Maria TAN / AFP / MANILA BULLETIN)
However, the SC decided to retain for further study and resolution the case against the television firm’s affiliate, ABS-CBN Convergence, Inc.
The reason for the staying of the quo warranto case against ABS-CBN Convergence was not known immediately as the SC has yet to release its resolution that was issued during its Tuesday’s full court session.
SC Spokesperson Atty. Brian Keith F. Hosaka confirmed the dismissal of the quo warranto case against ABS-CBN and the retention of the case against the television firm’s affiliate. He did not elaborate on the SC’s actions.
ABS-CBN’s 25-year old franchise expired last May 4. The franchise of its affiliate expired last March 17.
Last May 5, ABS-CBN halted its nationwide broadcast hours after the National Telecommunications Commission (NTC) issued a cease and desist order (CDO).
ABS-CBN challenged NTC’s CDO and twice pleaded for a temporary restraining order (TRO). Chief Justice Diosdado M. Peralta said over a week ago that the firm’s petition will be tackled anew on July 13.
Last February or about three months before the expiration of the franchise, Solicitor General Jose C. Calida filed the quo warranto case to forfeit the legislative franchises of ABS-CBN and its subsidiary. The SC acted on the petition by requiring the television firm and its subsidiary to file their comments.
Among other things, the OSG cited the television company’s alleged “highly abusive practices… benefitting a greedy few at the expense of millions of its loyal subscribers.”
It alleged that “ABS-CBN has been broadcasting for a fee, which is beyond the scope of its legislative franchise.”
Also, the OSG said “the media giant, hiding behind an ‘elaborately crafted corporate veil,’ has been allowing foreign investors to take part in the ownership of Philippine mass media entity, in gross violation of the foreign interest restriction of mass media provided under Section 11, Article XVI of the Constitution.”
ABS-CBN denied all the OSG’s allegations as it pointed out that it fully complies with all the pertinent laws and regulations governing its franchise. It pleaded for the dismissal of the quo warranto case.
Since 2016, ABS-CBN has sought the renewal of its franchise through several bills filed in the House of Representatives. The bills have not been acted upon by the legislators.
On NTC’s CDO, ABS-CBN said in its petition that the order was issued “without any prior notice or hearing in violation of the firm’s right to due process.”
“There is no urgent or paramount necessity for the issuance of a CDO. On the contrary, it is the closure of ABS-CBN that will cause serious and irreparable damage not only to ABS-CBN but, more importantly, to public interest,” it said.
Among other things, the television firm it has more than 11,000 employees, from 2016 to 2019 more than P14.3 billion in income taxes have been paid to the government, and the public needs the television firm’s services as the country grapples with coronavirus disease (COVID-19).
“The closure of ABS-CBN would, therefore, deprive the public of one of the leading sources of news and entertainment, and would impair the people’s constitutional right to information on matters of public concern,’ it said.
NTC, on the other hand, sought the dismissal of ABS-CBN’s petition against the CDO.
Filed by the OSG, NTC said that the petition did not comply with the rule on verification and certification against forum shopping.
On the substantive issues, the comment stated that the NTC is empowered to halt the broadcast operations of ABS-CBN with the expiration of its legislative franchise.
It stated that the laws require a congressional franchise and a license issued by the NTC for ABS-CBN to resume its broadcast operations.
At the same time, the NTC said that “the issuance of the CDO did not curtail ABS-CBN's right to freedom of speech and of the press; and neither did it deprive the public of its right to information."
"Thus, the petitioner's alleged right to freedom of speech and of the press in relation to its broadcast operations becomes irrelevant because it had already lost its privilege to use the State's frequency for such purposes," it added.
This view shows the ABS-CBN network headquarters in Quezon City in the Metro Manila area on May 5, 2020. (Photo by Maria TAN / AFP / MANILA BULLETIN)
However, the SC decided to retain for further study and resolution the case against the television firm’s affiliate, ABS-CBN Convergence, Inc.
The reason for the staying of the quo warranto case against ABS-CBN Convergence was not known immediately as the SC has yet to release its resolution that was issued during its Tuesday’s full court session.
SC Spokesperson Atty. Brian Keith F. Hosaka confirmed the dismissal of the quo warranto case against ABS-CBN and the retention of the case against the television firm’s affiliate. He did not elaborate on the SC’s actions.
ABS-CBN’s 25-year old franchise expired last May 4. The franchise of its affiliate expired last March 17.
Last May 5, ABS-CBN halted its nationwide broadcast hours after the National Telecommunications Commission (NTC) issued a cease and desist order (CDO).
ABS-CBN challenged NTC’s CDO and twice pleaded for a temporary restraining order (TRO). Chief Justice Diosdado M. Peralta said over a week ago that the firm’s petition will be tackled anew on July 13.
Last February or about three months before the expiration of the franchise, Solicitor General Jose C. Calida filed the quo warranto case to forfeit the legislative franchises of ABS-CBN and its subsidiary. The SC acted on the petition by requiring the television firm and its subsidiary to file their comments.
Among other things, the OSG cited the television company’s alleged “highly abusive practices… benefitting a greedy few at the expense of millions of its loyal subscribers.”
It alleged that “ABS-CBN has been broadcasting for a fee, which is beyond the scope of its legislative franchise.”
Also, the OSG said “the media giant, hiding behind an ‘elaborately crafted corporate veil,’ has been allowing foreign investors to take part in the ownership of Philippine mass media entity, in gross violation of the foreign interest restriction of mass media provided under Section 11, Article XVI of the Constitution.”
ABS-CBN denied all the OSG’s allegations as it pointed out that it fully complies with all the pertinent laws and regulations governing its franchise. It pleaded for the dismissal of the quo warranto case.
Since 2016, ABS-CBN has sought the renewal of its franchise through several bills filed in the House of Representatives. The bills have not been acted upon by the legislators.
On NTC’s CDO, ABS-CBN said in its petition that the order was issued “without any prior notice or hearing in violation of the firm’s right to due process.”
“There is no urgent or paramount necessity for the issuance of a CDO. On the contrary, it is the closure of ABS-CBN that will cause serious and irreparable damage not only to ABS-CBN but, more importantly, to public interest,” it said.
Among other things, the television firm it has more than 11,000 employees, from 2016 to 2019 more than P14.3 billion in income taxes have been paid to the government, and the public needs the television firm’s services as the country grapples with coronavirus disease (COVID-19).
“The closure of ABS-CBN would, therefore, deprive the public of one of the leading sources of news and entertainment, and would impair the people’s constitutional right to information on matters of public concern,’ it said.
NTC, on the other hand, sought the dismissal of ABS-CBN’s petition against the CDO.
Filed by the OSG, NTC said that the petition did not comply with the rule on verification and certification against forum shopping.
On the substantive issues, the comment stated that the NTC is empowered to halt the broadcast operations of ABS-CBN with the expiration of its legislative franchise.
It stated that the laws require a congressional franchise and a license issued by the NTC for ABS-CBN to resume its broadcast operations.
At the same time, the NTC said that “the issuance of the CDO did not curtail ABS-CBN's right to freedom of speech and of the press; and neither did it deprive the public of its right to information."
"Thus, the petitioner's alleged right to freedom of speech and of the press in relation to its broadcast operations becomes irrelevant because it had already lost its privilege to use the State's frequency for such purposes," it added.