CA ruling proves Rappler’s case not press freedom issue: Palace

MANILA – The decision of the Court of Appeals (CA) to deny the petition of online news site Rappler proves that the case does not involve press freedom, Malacañang said Friday.

Presidential Spokesperson Harry Roque said the CA’s ruling affirmed that the Securities and Exchange Commission (SEC) was correct to revoke the certificate of incorporation of Rappler, Inc. and Rappler Holdings Corp. (RHC) allegedly for violating the Constitution and foreign equity restrictions in mass media.

“The decision likewise supports the Palace stance that this case does not involve press freedom, but the regulatory powers of the SEC,” Roque said in a press statement.

The CA dismissed the petition filed by Rappler after finding no grave abuse of discretion on the part of the SEC.

The appellate court, however, directed the SEC to conduct “an evaluation of the legal effect of the alleged supervising donation” made by Omidyar Network of all its Philippine Depositary Receipts to the staff of Rappler.

The CA also ruled there was no denial of administrative due process since notice and hearing were afforded to Rappler.

“We are confident that the SEC will be able to resolve the case with the same competence and objectivity as before,” Roque said.

The SEC had earlier cancelled the registration of Rappler, Inc. and RHC for “existing for no other purpose than to effect a deceptive scheme to circumvent the Constitution.”

The Omidyar Network, Inc. and North Base Media, both American companies, reportedly made substantial investments in Rappler in 2015.

The Constitution provides that the “ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations or associations wholly owned and managed by such citizens”. (Jelly Musico/PNA)

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