Title
GMA Network Inc. vs. ABS-CBN Broadcasting Corp.
Case
G.R. No. 160703
Decision Date
Sep 23, 2005
GMA Network Inc. files a complaint against ABS-CBN Broadcasting Corp. for arbitrary re-channeling of its broadcast, but the court rules that the National Telecommunications Commission has primary jurisdiction over the case and GMA's complaint fails to state a cause of action against ABS-CBN.
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Case Digest (G.R. No. 160703)

Facts:

  • On May 6, 2003, GMA Network, Inc. ("GMA") filed a complaint for damages before the Regional Trial Court of Quezon City against ABS-CBN Broadcasting Corporation ("ABS-CBN"), Central CATV, Inc. ("SkyCable"), Philippine Home Cable Holdings, Inc. ("Home Cable"), and Pilipino Cable Corporation ("Sun Cable").
  • The case was docketed as Civil Case No. Q03-49500 and assigned to Branch 97.
  • GMA alleged that the respondents engaged in unfair competition by arbitrarily re-channeling GMA's cable television broadcast on February 1, 2003, resulting in distorted and degraded audio and visual signals.
  • GMA claimed that this re-channeling was intended to damage its business operations and was facilitated through the common ownership and interlocking businesses of the respondent corporations.
  • GMA sought P10 million in damages for business interruptions and injury to its operations.
  • The respondents moved to dismiss the complaint, arguing that the National Telecommunications Commission (NTC) had primary jurisdiction over the issues and that GMA had no cause of action against ABS-CBN.
  • The trial court dismissed the complaint, holding that the NTC had primary jurisdiction and that GMA had no cause of action against ABS-CBN.
  • GMA then filed a petition under Section 2(c), Rule 41 in relation to Rule 45 of the Rules of Court, challenging the trial court's decision.

Issue:

  • (Unlock)

Ruling:

  1. The Supreme Court ruled that the NTC has primary jurisdiction over the issues raised in GMA's complaint.
  2. The Supreme Court affirmed the trial court's ruling that ...(Unlock)

Ratio:

  • The Supreme Court held that the resolution of the issues raised in GMA's complaint required the determination of highly technical, factual issues related to the operations and ownership of the cable companies, which fall under the NTC's jurisdiction.
  • The NTC, created by Executive Order No. 546, is empowered to regulate the broadcasting and cable television industry, including the issuance of certificates of public convenience, establishment of areas of operation, and regulation of ownership and operation.
  • The Court emphasized that the NTC has the expertise and specializ...continue reading

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