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== Background ==
== Background ==
Under Philippine law, broadcasting networks require a congressional franchise to operate television and radio stations.<ref name="GR1441092">{{cite court|litigants=ACWS-UBN vs. NTC|reporter=Phil.|vol=445|opinion=621|date=February 17, 2003|url=http://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/47878|access-date=May 7, 2020}}</ref> ABS-CBN, which had been operating since the mid-1960s, had last been granted a 25-year franchise extension on March 30, 1995 by virtue of Republic Act No. 7966 (March 30, 1995). This expired on May 4, 2020 as upheld by the [[Department of Justice (Philippines)|Department of Justice]].<ref>{{Cite web|title=ABS-CBN franchise to expire on May 4, 2020 – DOJ|url=https://cnnphilippines.com/news/2020/2/24/ABS-CBN-franchise-expiration-Senate-hearing.html|website=cnn}}</ref>
Under Philippine law, broadcasting networks require a congressional franchise to operate television and radio stations, which usually last for up to 25 years.<ref name="GR1441092">{{cite court|litigants=ACWS-UBN vs. NTC|reporter=Phil.|vol=445|opinion=621|date=February 17, 2003|url=http://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/47878|access-date=May 7, 2020}}</ref> ABS-CBN, which had been operating since the mid-1960s, had last been granted a 25-year franchise extension on March 30, 1995 by virtue of Republic Act No. 7966 (March 30, 1995). This expired on May 4, 2020 as upheld by the [[Department of Justice (Philippines)|Department of Justice]].<ref>{{Cite web|title=ABS-CBN franchise to expire on May 4, 2020 – DOJ|url=https://cnnphilippines.com/news/2020/2/24/ABS-CBN-franchise-expiration-Senate-hearing.html|website=cnn}}</ref>


== History ==
== History ==

Revision as of 08:07, 7 May 2020

ABS-CBN Broadcasting Center in Quezon City

The ABS-CBN franchise renewal controversy concerns the non-renewal of the congressional franchise of the Philippine broadcast network ABS-CBN,[1][2] which is one of the Philippines' oldest and most influential media networks.[3] This led to the congressional franchise expiring on May 4, 2020 and the network being forced to temporarily stop its broadcast on May 5, 2020,[4] after the Philippines' National Telecommunications Commission issued a cease and desist order relating to the expiration of the franchise.[1]

Since 2014, the network had applied for the renewal of their franchise through house bills which have been pending in the Congress of the Philippines. But these were not acted upon by the 16th, 17th, and 18th congresses of the Philippines.[1][2] Media advocacy groups[2] and the international press[1][4] have flagged the issue as a press freedom concern since Philippine President Rodrigo Duterte, whose allies have a supermajority in both branches of the Philippine legislature,[5][6] has repeatedly expressed displeasure at the network's news coverage,[7] and had previously declared that the network's congressional franchise would not be renewed.[8]

The stoppage marked the first time the network had been off the air since 1986, having been shut down during martial law under Ferdinand Marcos in 1972.[1] The stoppage was also noted to have placed the job security of 11,000 ABS-CBN employees in jeopardy even as the Philippines was facing the COVID-19 pandemic.[1][4]

Background

Under Philippine law, broadcasting networks require a congressional franchise to operate television and radio stations, which usually last for up to 25 years.[9] ABS-CBN, which had been operating since the mid-1960s, had last been granted a 25-year franchise extension on March 30, 1995 by virtue of Republic Act No. 7966 (March 30, 1995). This expired on May 4, 2020 as upheld by the Department of Justice.[10]

History

Early renewal initiatives during the 16th Congress

See also: 16th Congress of the Philippines

In 2014 and 2015, ABS-CBN requested the 16th Congress to tackle the extension of its franchise early, despite the fact that its renewal was not due until six years later, in 2020.[2]

Media sources in the legislature indicated that the network's 2016 initiative was the result of having been "particularly singled out" by supporters President-elect Rodrigo Duterte because of the perception that they "consistently showed him in a negative light".[2] The Philippine Daily Inquirer reported that a member of the House legislative franchise committee said ABS CBN "did not want to risk going through the renewal under an 'unfriendly' administration."[11]

The Inquirer's source also said that the initiative "lacked support from President Benigno Aquino III's allies in the House" because they felt that ABS CBN's criticisms against Aquino were "too personal and offensive and went to the point of nitpicking."[11][2]

ABS-CBN eventually had to withdraw these franchise renewal initiatives due to time constraints.[2]

Ad controversies during the 2016 Philippine presidential campaign

Philippine President Rodrigo Duterte has attributed his objection to the franchise renewal of ABS-CBN to an election ad controversy during the campaign leading up to the 2016 Philippine presidential election. He said that the network's refusal to air his 2016 presidential campaign ads in favor of an advertisement paid by then-vice presidential candidate Antonio Trillanes critical of his remarks on the campaign trail.[12][13] The network's president and CEO Carlo Katigbak has apologized to President Duterte for not airing his political advertisements during his 2016 polls.

Meanwhile, Commission on Elections spokesperson James Jimenez defended the controversial ad as being well within Election Law, under "Partisan Political Activity"[14][15]

Renewal initiatives during the 17th and 18th Congress

Non-renewal assertions by Duterte

Throughout his term, which coincides with the 17th and 18th Congress, President Duterte publicly reiterated that he will oppose the 25-year franchise renewal of ABS-CBN.[8] Opposition lawmakers as well as labor groups objected to Duterte's stand on ABS-CBN as the franchise non-renewal will compromise the employees of the network; stating that the blocking of the franchise renewal had no merit. Opposition groups have also claimed that the non-renewal of the franchise violates press freedom.[citation needed]

17th Congress

In November 2016, Nueva Ecija Representative Micaela Violago filed House Bill 4349 in the 17th Congress to renew the network's franchise.[16][17] The 17th Congress adjourned sine die with no resolution on the matter.[citation needed]

Deliberations during the 18th Congress

In the 18th Congress of the Philippines, at least 12 lawmakers has filed their own versions for a new franchise of the network. House Speaker Alan Peter Cayetano has made assurances that the Congress will tackle the franchise with fairness.[18]

On February 24, 2020, the Congress finally made its decision to tackle their franchise renewal.[19] During a Senate hearing on the same day, public services panel chair Grace Poe stated they were to tackle ABS-CBN's compliance with the terms and conditions of its franchise.[20] The conclusion was that there was no breach of laws or franchise terms. The following is a summary of the findings:

  1. The Bureau of Internal Revenue stated that ABS-CBN had fully complied with the tax requirements of the government. Sir Cabantac Jr., BIR Large Taxpayers Service head stated that the company had paid P14.298 billion from 2016 to 2019. In 2019, ABS-CBN also settled P152.44 million in tax payments with the BIR.[21]
  2. The Department of Labor and Employment cleared the media giant for its compliance with general labor standards, occupational safety and health, and security of tenure. Former ABS-CBN corporate services head Mark Nepomuceno said they also have contributed to mandatory employee benefits such as SSS, Phil-Health, PAG-IBIG. He also stated that ABS-CBN was no longer practicing end-of-contract scheme, as well as giving benefits to independent contributors varying per contract negotiation[21]
  3. Telecommunications Commissioner General Gamaliel Cordoba stated that franchise laws cover "commercial purposes", including pay-per-view service. Section 1 of Republic Act 7908, which allows ABS-CBN Covergence's broadcast operations, states that: "It is hereby granted a franchise to construct, operate, and maintain, for commercial purposes." Even though ABS-CBN introduced the service without NTC guidelines yet, the fine for such violation is a measly P200. Senate President Recto stated that the NTC can just impose a fine on ABS-CBN rather than shutdown.[21]
  4. Securities and Exchange Commission Commissioner Ephyro Amatong clarified that a legal interpretation from 1999 stated that Philippine Depository Receipts were not equivalent to certificates of ownership, which may have evolved in recent years. Senator Poe pointed out that companies should be notified of any changes in the legal interpretation of the investment instrument, as all media companies have to be 100% Filipino-owned. Issuing PDRs is a common practice among Philippine media outfits—including Rappler and GMA. The SEC has not yet conducted a review whether there are violations in ABS-CBN's PDRs, with Amatong saying he "would rather not make a categorical statement at this time" as to whether there are violations in ABS-CBN's PDRs, given the pending case at the Supreme Court, as of May 6, 2020.[21]

Quo warranto petition

In February 2020, Solicitor General of the Philippines Jose Calida filed a quo warranto petition before the Supreme Court of the Philippines seeking to disfranchise ABS-CBN over alleged breaches of its franchise.[22] The network responded to disprove the allegations levelled against it.[23] Within the same month, various congressmen urged the National Telecommunications Commission (NTC) to grant a provisional authority to ABS-CBN to continue operations after the lapse of its current franchise until Congress has made a decision on its franchise application.[24] Having consulted with the Department of Justice (DOJ), the NTC affirmed in March 2020 that it would "likely" issue a provisional authority to ABS-CBN and "let ABS-CBN continue operations based on equity".[25]

May 2020 broadcast stoppage

On May 3, 2020, Calida warned NTC against granting the provisional authority to ABS-CBN, citing a Supreme Court decision in 2014, stating that provisional authority can only be granted after the franchise is secured in the Congress.[24][22] In the same statement, Calida cautioned that the agency would put itself at risk of prosecution under the Anti-Graft and Corrupt Practices Act should they issue the provisional authority without a legal franchise being held by ABS-CBN's operating companies, and that a 1991 DOJ's opinion stating the NTC may issue provisional authority without a legal franchise was turned over by the Supreme Court.[22]

On May 5, 2020, NTC issued a cease and desist order to temporarily stop the network's broadcast, including its radio stations DZMM and MOR, following the expiration of its broadcast franchise the day before.[26][27][28][29][30][31] The cease and desist order covers 42 television stations operated by ABS-CBN across the country, including Channel 2, 10 digital broadcast channels, 18 FM stations, and 5 AM stations. However, ABS-CBN News Channel and its sister cable channels (run by subsidiary Creative Programs), as well as its online properties, were allowed to continue. [32]

The network signed off the air at 7:52 pm (UTC +8) following the news program TV Patrol.[33] ABS-CBN executives Carlo Katigbak and Mark Lopez aired statements appealing the NTC cease and desist order.[34][35] ABS-CBN was also given 10 days to explain why its assigned frequencies should not be recalled.[36]

Reactions

After the broadcast stoppage

Several journalists and celebrities from ABS-CBN and rival GMA Network expressed solidarity with ABS-CBN after it was ordered to cease its radio and TV broadcast.[37][38] The hashtag #NoToABSCBNShutDown topped the local Twitter trending list the same day.[39]

References

  1. ^ a b c d e f Cabato, Regine (May 5, 2020). "Philippines orders its largest broadcaster off the air as nation fights virus". The Washington Post. Retrieved May 6, 2020.
  2. ^ a b c d e f g "Congressional Franchises as a Weapon to Defeat a Free Press". Center for Media Freedom and Responsibility. June 17, 2016. Archived from the original on September 2, 2016. Retrieved May 6, 2020.
  3. ^ Gomez, Jim (May 5, 2020). "Philippines Orders Leading TV Network to Shut Down as Watchdogs Accuse President of Muzzling Independent Media". Time. Retrieved May 7, 2020.
  4. ^ a b c Gutierrez, Jason (May 5, 2020). "Leading Philippine Broadcaster, Target of Duterte's Ire, Forced Off the Air". The New York Times. ISSN 0362-4331. Retrieved May 7, 2020.
  5. ^ Gutierrez, Jason (May 14, 2019). "Philippines Election: Duterte Allies Sweep Senate, Unofficial Results Indicate". The New York Times. ISSN 0362-4331. Retrieved May 7, 2020.
  6. ^ Corrales, Nestor (July 19, 2019). "Palace on impeach raps: Duterte has supermajority in Congress". Retrieved May 7, 2020.
  7. ^ "Philippines' top broadcaster ordered off air". BBC News. May 5, 2020. Retrieved May 7, 2020.
  8. ^ a b Aurelio, Julie M.; Inquirer Research (December 4, 2019). "I'll see to it that you're out, President tells ABS-CBN". Inquirer.net. Retrieved January 25, 2020. "Your franchise will end next year. If you are expecting that it will be renewed, I'm sorry. You're out. I will see to it that you're out," he said, addressing ABS-CBN.
  9. ^ ACWS-UBN vs. NTC, 445 Phil. 621 (February 17, 2003).
  10. ^ "ABS-CBN franchise to expire on May 4, 2020 – DOJ". cnn.
  11. ^ a b Cabacungan, Gil C. (June 11, 2016). "ABS-CBN in a bind over franchise renewal". The Philippine Daily Inquirer. Archived from the original on September 9, 2016. Retrieved May 7, 2020.
  12. ^ Placido, Dharel (November 8, 2018). "Duterte to 'object' to ABS-CBN franchise renewal". ABS-CBN News. Retrieved May 6, 2020.
  13. ^ Rey, Aika. "Bong Go: It's those anti-Duterte ads on ABS-CBN that got the boss' goat". Retrieved May 7, 2020.
  14. ^ "RULES AND REGULATIONS IMPLEMENTING THE FAIR ELECTION ACT - CHAN ROBLES VIRTUAL LAW LIBRARY". www.chanrobles.com. Retrieved May 5, 2020.
  15. ^ News, Pia Gutierrez, ABS-CBN. "Comelec: Negative pol ads allowed by law". ABS-CBN News. Retrieved May 5, 2020. {{cite web}}: |last= has generic name (help)CS1 maint: multiple names: authors list (link)
  16. ^ "House Bill 4349. 17th Congress House of Representatives, Republic of the Philippines" (PDF). Retrieved May 6, 2020.
  17. ^ Esguerra, Christian V. "TIMELINE: Will ABS-CBN get a new broadcast franchise?". ABS-CBN News. Retrieved May 6, 2020.{{cite web}}: CS1 maint: url-status (link)
  18. ^ Luna, Franco. "Cayetano: 'Congress will be fair' on ABS-CBN franchise renewal". philstar.com.
  19. ^ Romero, Paolo (February 24, 2020). "ABS-CBN president apologizes to Duterte". The Philippine Star. Retrieved February 26, 2020.{{cite news}}: CS1 maint: url-status (link)
  20. ^ Rey, Aika. "Poe wants Senate to discuss ABS-CBN's compliance with franchise terms". Rappler. Retrieved May 6, 2020.
  21. ^ a b c d Rey, Aika; Gotinga, J. C. "Senate hearing on ABS-CBN: No breach of laws, franchise terms". Rappler. Retrieved May 5, 2020.
  22. ^ a b c Panaligan, Rey (May 3, 2020). "OSG warns NTC against issuing provisional permits to operate to ABS-CBN, its subsidiary". Manila Bulletin. Retrieved May 7, 2020.{{cite web}}: CS1 maint: url-status (link)
  23. ^ Buan, Lian. "EXPLAINER: ABS-CBN's defense in the Supreme Court quo warranto case". Rappler. Retrieved May 7, 2020.
  24. ^ a b Ramos, Christia Marie. "Calida warns NTC vs granting provisional authority to ABS-CBN". newsinfo.inquirer.net. Retrieved May 7, 2020.
  25. ^ Galvez, Daphne. "NTC: ABS-CBN will be allowed to operate beyond May 4". newsinfo.inquirer.net. Retrieved May 7, 2020.
  26. ^ Adel, Rosette (May 5, 2020). "#NoToABSCBNShutdown plea launched anew after NTC issues cease and desist order vs ABS-CBN". Interaksyon. Retrieved May 5, 2020.
  27. ^ Mercado, Neil Arwin (May 5, 2020). "BREAKING: NTC orders ABS-CBN to stop broadcast operations". Inquirer. Retrieved May 5, 2020.{{cite web}}: CS1 maint: url-status (link)
  28. ^ "ABS-CBN's heart-rending last moments before shutting down". Inquirer.net. May 6, 2020. Retrieved May 5, 2020.
  29. ^ "Philippines orders its largest broadcaster off the air as nation fights virus". The Washington Post. May 6, 2020. Retrieved May 5, 2020.
  30. ^ "Philippines largest TV network ABS-CBN ordered shut". AlJazeera. May 6, 2020. Retrieved May 5, 2020.
  31. ^ "Leading Philippine Broadcaster, Target of Duterte's Ire, Forced Off the Air". The New York Times. May 6, 2020. Retrieved May 5, 2020.
  32. ^ News, ABS-CBN (May 5, 2020). "NTC orders ABS-CBN to stop broadcasting". ABS-CBN News. Retrieved May 5, 2020. {{cite web}}: |last= has generic name (help)CS1 maint: url-status (link)
  33. ^ Gregorio, Xave (May 6, 2020). "ABS-CBN goes off air following NTC order". CNN Philippines. Retrieved May 5, 2020.
  34. ^ "President and CEO Carlo L. Katigbak's message on the cease and desist order issued to ABS-CBN". ABS-CBN News. May 6, 2020. Retrieved May 5, 2020.
  35. ^ "READ: ABS-CBN Chairman Mark L. Lopez's message on the cease and desist order issued to ABS-CBN". ABS-CBN News. May 6, 2020. Retrieved May 5, 2020.
  36. ^ Rivas, Ralf (May 5, 2020). "ABS-CBN goes off-air after NTC order". Rappler. Retrieved May 5, 2020.
  37. ^ Guno, Niña. "GMA stars, journos stand with ABS-CBN in wake of sign-off". INQUIRER.NET. Retrieved May 6, 2020.
  38. ^ "Stars react to ABS-CBN being ordered to close TV, radio operations". ABS-CBN News. May 5, 2020. Retrieved May 6, 2020.
  39. ^ "#NoToABSCBNShutDown tops local Twitter list after NTC issues halt order". ABS-CBN News. May 5, 2020. Retrieved May 6, 2020.


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