Title
GMA Network Inc. vs. ABS-CBN Broadcasting Corp.
Case
G.R. No. 160703
Decision Date
Sep 23, 2005
GMA sued ABS-CBN and cable firms for unfair competition over signal re-channeling; SC ruled NTC has primary jurisdiction, dismissing GMA's claims.

Case Digest (G.R. No. 160703)

Facts:

GMA Network, Inc. v. ABS-CBN Broadcasting Corporation, et al., G.R. No. 160703, September 23, 2005, the Supreme Court First Division, Ynares‑Santiago, J., writing for the Court. Petitioner GMA Network, Inc. (GMA) filed on May 6, 2003 a complaint for damages in the Regional Trial Court (RTC) of Quezon City, Branch 97 (Civil Case No. Q03‑49500), against respondents ABS‑CBN Broadcasting Corporation (ABS‑CBN), Central CATV, Inc. (SkyCable), Philippine Home Cable Holdings, Inc. (Home Cable) and Pilipino Cable Corporation (Sun Cable). GMA alleged that on February 1, 2003 the cable companies arbitrarily re‑channeled GMA’s cable broadcast (from Channel 12 to Channel 14) and deliberately degraded its audio and video signals, causing viewer complaints and harm to GMA’s ratings and commercial revenues; GMA sought P10 million in actual and compensatory damages.

GMA pleaded that the re‑channeling and signal degradation were made possible by common ownership and interlocking interests among the cable operators—SkyCable and Sun Cable as Sky Vision subsidiaries and Home Cable as a Unilink/Mediaquest/PLDT Group affiliate—consolidated under a Master Consolidation Agreement forming a holding company “Beyond Cable,” allegedly giving respondents at least 71% of Mega Manila’s cable market and enabling market manipulation. GMA also alleged that adverse effects on ratings were particularly damaging because people‑meter panels are partly located in cable households.

On July 15, 2003 SkyCable and Sun Cable moved to dismiss, invoking litis pendentia/forum‑shopping and asserting primary jurisdiction of the National Telecommunications Commission (NTC) because a substantially similar administrative case—GMA Network, Inc. v. Central CATV, Inc., Philippine Home Cable Holdings, Inc., and Pilipino Cable Corporation, NTC ADM Case No. 2003‑085—was pending before the NTC; they also contended GMA had no cause of action against ABS‑CBN and had not exhausted administrative remedies. Home Cable and ABS‑CBN filed answers with compulsory counterclaims and raised like defenses. GMA opposed the motions and filed replies; the RTC conducted a preliminary hearing on jurisdictional and related defenses.

The RTC issued the challenged resolution (October 30, 2003) dismissing GMA’s complaint. The trial court concluded that resolution of the factual and technical issues (signal carriage, degradation, and market/ownership regulation) fell within the primary and exclusive competence of the NTC, and that GMA’s complaint failed to state a cau...(Subscriber-Only)

Issues:

  • Did the trial court err in ruling that the NTC has primary jurisdiction over petitioner’s complaint for damages?
  • Did the trial court err in ruling that petitioner’s complaint states no cause of action against respo...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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