Case Digest (G.R. No. 252119)
Facts:
The case involves ABS-CBN Corporation (Petitioner) and the National Telecommunications Commission (NTC) (Respondent). On March 30, 1995, ABS-CBN was granted a legislative franchise under Republic Act No. 7966, allowing it to operate television and radio broadcasting stations in the Philippines for a term of twenty-five years, expiring on May 4, 2020. In the years leading up to the expiration, multiple bills for the renewal of ABS-CBN's franchise were filed in Congress, including eleven bills in the 18th Congress. On February 26, 2020, a bill was filed to amend the franchise to extend its term while Congress deliberated on the renewal. The NTC's Commissioner, Gamaliel A. Cordoba, indicated during a Senate hearing that the NTC had not previously closed any broadcast company due to an expired franchise pending renewal.
On May 4, 2020, ABS-CBN's franchise expired, and the following day, the NTC issued a cease and desist order (CDO) directing ABS-CBN to stop operati...
Case Digest (G.R. No. 252119)
Facts:
Grant and Expiration of ABS-CBN's Franchise
- On March 30, 1995, ABS-CBN Corporation (ABS-CBN) was granted a legislative franchise under Republic Act No. (RA) 7966 to operate television and radio broadcasting stations in the Philippines. The franchise was valid for 25 years, expiring on May 4, 2020.
Efforts to Renew the Franchise
- Bills for the renewal of ABS-CBN's franchise were filed in the 16th, 17th, and 18th Congresses. In the 18th Congress, 11 bills were submitted to the House Committee on Legislative Franchises, and 2 bills were filed in the Senate Committee on Rules.
- On February 26, 2020, a bill was filed to amend Section 1 of RA 7966 to extend ABS-CBN's franchise while Congress deliberated on its renewal.
- Several resolutions were also filed, including House Resolution No. 639, urging the House Committee on Legislative Franchises to expedite the franchise renewal process, and House Joint Resolution Nos. 28 and 29, seeking to extend ABS-CBN's franchise until June 30, 2022, and May 4, 2021, respectively.
NTC's Position and DOJ's Guidance
- On February 24, 2020, during a Senate hearing, NTC Commissioner Gamaliel A. Cordoba stated that the NTC had not closed any broadcast company due to an expired franchise and would issue a Provisional Authority to ABS-CBN if advised by the Department of Justice (DOJ).
- On February 26, 2020, the DOJ, through Secretary Menardo I. Guevarra, provided guidance to the NTC, noting an "established practice" of allowing broadcast companies to continue operations despite an expired franchise, pending renewal. The DOJ also stated that the NTC could provisionally authorize ABS-CBN to operate.
House Committee's Letter to NTC
- On February 26, 2020, the House Committee on Legislative Franchises sent a letter to the NTC, urging it to grant ABS-CBN a provisional authority to operate effective May 4, 2020, pending Congress' decision on the franchise renewal.
Senate Resolution
- On March 4, 2020, the Senate adopted Resolution No. 40, expressing the sense that ABS-CBN should continue operating pending the final determination of its franchise renewal.
NTC's Cease and Desist Order (CDO)
- On May 4, 2020, ABS-CBN's franchise expired. The following day, the NTC issued a Cease and Desist Order (CDO) directing ABS-CBN to stop operating its radio and television stations. ABS-CBN complied and went off-air.
ABS-CBN's Petition
- On May 7, 2020, ABS-CBN filed a Petition for Certiorari and Prohibition before the Supreme Court, challenging the NTC's CDO. ABS-CBN argued that the NTC gravely abused its discretion by disregarding pending bills for its franchise renewal and violating its rights to equal protection, due process, and freedom of speech and the press.
Incidents After Filing the Petition
- On May 11, 2020, the House of Representatives issued a Show Cause Order to the NTC, requiring it to explain why it should not be cited in contempt for issuing the CDO.
- On May 18, 2020, ABS-CBN filed an Urgent Reiterative Motion for the issuance of a Temporary Restraining Order (TRO) or Writ of Preliminary Injunction (WPI), citing House Bill No. 6732, which sought to grant ABS-CBN a provisional franchise until October 31, 2020.
Issue:
- Whether the NTC committed grave abuse of discretion in issuing the CDO against ABS-CBN despite pending bills for the renewal of its franchise.
- Whether the CDO violated ABS-CBN's rights to equal protection, due process, and freedom of speech and the press.
- Whether the NTC could issue a provisional authority to ABS-CBN pending Congress' decision on its franchise renewal.
Ruling:
The Supreme Court dismissed ABS-CBN's petition, holding that the NTC did not commit grave abuse of discretion in issuing the CDO. The Court ruled that the NTC acted within its authority and in accordance with the law, as ABS-CBN's franchise had expired, and the NTC could not issue a provisional authority without a valid franchise.
Ratio:
- Grave Abuse of Discretion: The NTC did not act with grave abuse of discretion in issuing the CDO. The expiration of ABS-CBN's franchise rendered its operations illegal, and the NTC was bound by law to enforce the CDO.
- Equal Protection and Due Process: The CDO did not violate ABS-CBN's rights to equal protection and due process. The NTC's actions were based on the expiration of the franchise, and there was no evidence of arbitrary or discriminatory treatment.
- Provisional Authority: The NTC could not issue a provisional authority to ABS-CBN without a valid franchise. The power to grant or renew a franchise lies exclusively with Congress, and the NTC had no authority to bypass this constitutional mandate.