Title
ABS-CBN Corp. vs. National Telecommunications Commission
Case
G.R. No. 252119
Decision Date
Aug 25, 2020
ABS-CBN's franchise expired in 2020; NTC issued a cease-and-desist order, upheld by the Supreme Court, ruling no grave abuse of discretion and no provisional authority without a valid franchise.

Case Digest (G.R. No. 91260)
Expanded Legal Reasoning Model

Facts:

  • Petitioner’s legislative franchise and renewal efforts
    • On March 30, 1995, Republic Act No. 7966 granted ABS-CBN Corporation (“petitioner”) a 25-year franchise to construct and operate television and radio stations nationwide, effective May 4, 1995, expiring May 4, 2020.
    • Beginning in 2014 (16th Congress) and throughout the 17th and 18th Congresses, multiple House bills (eleven in the 18th Congress) and two Senate bills were filed to renew or extend petitioner’s franchise. Three House joint resolutions likewise sought extensions pending deliberation.
  • Administrative and executive positions on provisional operations
    • On February 24, 2020, NTC Commissioner Cordoba testified that NTC had historically not withdrawn provisional authority for expired franchises and would follow DOJ advice.
    • On February 26, 2020, DOJ “guidance” observed an equitable practice of allowing continued operations pending renewal and advised NTC may grant provisional authority. The House Committee on Legislative Franchises formally requested a provisional authority. The Senate adopted a resolution urging that ABS-CBN continue operating.
    • On March 16, 2020, in light of COVID-19 quarantine, NTC Memorandum Order automatically renewed subsisting permits expiring during quarantine and extended validity 60 days after quarantine.
  • NTC Cease and Desist Order and judicial proceedings
    • On May 4, 2020, ABS-CBN’s franchise expired. On May 5, 2020, NTC issued a Cease and Desist Order (CDO) directing immediate cessation of ABS-CBN’s radio and TV operations for lack of a valid congressional franchise. ABS-CBN complied.
    • On May 7, 2020, ABS-CBN filed a petition for certiorari and prohibition with urgent applications for TRO/WPI, alleging NTC grave abuse of discretion in issuing the CDO, violation of equal protection, due process, freedom of speech/press, and right to public information.
    • On July 10, 2020, the House Committee on Legislative Franchises denied all pending franchise renewal bills by committee resolution, laying them on the table. The Supreme Court impleaded and later dropped both Houses of Congress as parties.

Issues:

  • Whether the NTC gravely abused its discretion by issuing the CDO directing ABS-CBN to cease operations upon franchise expiration, despite pending renewal bills and prior practice of provisional authority.
  • Whether the CDO violated ABS-CBN’s constitutional rights to equal protection, due process, freedom of speech and of the press, and right to public information.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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