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. 252119)

Facts:

ABS-CBN Corporation v. National Telecommunications Commission, G.R. No. 252119, August 25, 2020, the Supreme Court En Banc, Perlas-Bernabe, J., writing for the Court.

Petitioner ABS-CBN Corporation held a legislative franchise under Republic Act No. 7966 that became effective May 4, 1995 for a term of twenty‑five years and therefore expired on May 4, 2020. Beginning in 2014 and during successive Congresses, multiple bills for renewal of ABS‑CBN's franchise were filed in the House and, later, in the Senate; during the 18th Congress numerous House bills and two Senate bills addressing renewal were pending. Various House and Senate resolutions urged that ABS‑CBN be allowed to operate pending congressional action. The Department of Justice (DOJ) issued a nonbinding “guidance” noting an equitable practice of allowing continued operation pending renewal and that the National Telecommunications Commission (NTC) may provisionally authorize operation; NTC memoranda during the COVID‑19 quarantine also extended certain permits.

On May 5, 2020, however, the NTC issued an administrative Cease and Desist Order (CDO) directing ABS‑CBN to immediately cease operation of enumerated radio and television stations because RA 7966 had expired; ABS‑CBN complied and went off‑air. Prior to issuance, the Solicitor General publicly warned NTC against granting provisional authority; NTC commissioners had earlier indicated they would follow DOJ advice, but the CDO relied solely on franchise expiration. ABS‑CBN promptly filed a Petition for Certiorari and Prohibition with urgent applications for a Temporary Restraining Order and/or Writ of Preliminary Injunction before this Court, alleging grave abuse of discretion by the NTC and asserting violations of equal protection, due process, and freedom of the press/right to public information.

Following the petition, the House issued a Show Cause to the NTC and the NTC answered that it could not grant provisional authority because doing so would encroach on Congress’s exclusive power to grant franchises. The Supreme Court, by Resolution dated May 19, 2020, required the NTC to comment and impleaded the House of Representatives and the Senate to be heard. The NTC filed a Comment and omnibus motion seeking discharge of the two Houses as parties; the Senate and the House later filed pleadings likewise seeking to be discharged. While the case was pending, on July 10, 2020 the House Committee on Legislative Franchises, adopting the recommendation of its Technical Working Gro...(Subscriber-Only)

Issues:

  • Is the petition justiciable, or has it become moot and academic in view of intervening congressional action?
  • Did the NTC commit grave abuse of discretion in issuing the May 5, 2020 Cease and Desist Order against ABS‑CBN?
  • Did the CDO violate ABS‑CBN’s rights to equal protection, due process, and freedom of the press/ri...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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