ABS-CBN Corporation Vs. National Telecommunications Corporation* G.R. No. 252119, August 25, 2020

ABS-CBN Corporation Vs. National Telecommunications Corporation\* G.R. No. 252119, August 25, 2020

Perlas-Bernabe

https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/66326

On May 4, 2020, ABS-CBN's franchise expired. Hence, on May 5, 2020, the NTC issued the CDO directing ABS-CBN to "immediately CEASE and DESIST from operating [the enumerated] radio and television stations." The CDO was based solely on the "expiration of RA 7966." Consequently, on even date, ABS-CBN complied with the CDO and went off-air.

In its Omnibus Motion, the NTC further prayed that the Senate and the House of Representatives should be discharged as parties to the instant case, since they are not real parties-in-interest or indispensable parties herein as no relief has been claimed by ABS-CBN as against them but only as against the NTC.

As the Court's only intention was to accord its co-equal branch of government due process because of the prospect of tackling a delicate constitutional issue, and considering now that the pertinent issue affecting them had already been rendered moot, the Court therefore grants the requests of both Houses to be discharged as parties to this case as prayed for in their submissions. "Parties may be dropped or added by order of the court on motion of any party or on its own initiative at any stage of the action and on such terms as are just."

RESOLUTION

* DENYING THE FRANCHISE APPLICATION OF ABS-CBN CORPORATION TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND BROADCASTING STATIONS IN THE PHILIPPINES

* WHEREAS, Republic Act (RA) No. 7966 granted ABS-CBN Corporation (formerly ABS-CBN Broadcasting Corporation) a franchise to construct, operate and maintain television and radio broadcasting stations throughout the Philippines;
* WHEREAS, prior to expiration of RA No. 7966 on 05 May 2020, several House Bills and House Resolutions were filed including House Bill Nos. 676, 3521, 3713, 3947, 4305, 5608, 5705, 5753, 6052, 6138, 6293 and 6694, and House Resolution Nos. 639 and 853 relative to the grant or renewal of ABS-CBN Corporation's franchise;
* WHEREAS, the Committee on Legislative Franchises sought the position of the stakeholders, relevant government agencies and constituencies on the franchise application of ABS-CBN Corporation;
* WHEREAS, the Committee on Legislative Franchises conducted its initial hearing on March 10, 2020 and the Joint Committees on Legislative Franchises and Good Government and Public Accountability conducted extensive hearings from May 26 to July 9, 2020 to discuss the various issues raised against ABS-CBN Corporation;
* WHEREAS, the Committee on Legislative Franchises created a Technical Working Group (TWG) to discuss the findings and recommend a decision of the Committee on Legislative Franchises on the franchise application of ABS-CBN Corporation;
* WHEREAS, the TWG, after due consideration of the testimonies, documents, submissions and arguments has come up with its findings and recommendations contained in the TWG Report;
* WHEREAS, the TWG recommended to deny the franchise application of ABS-CBN Corporation and the Committee on Legislative Franchises to adopt its recommendation;
* NOW THEREFORE BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the members of the Committee on Legislative Franchises deny the application of ABS-CBN Corporation for a franchise to construct, install, establish, operate and maintain radio and broadcasting stations in the Philippines;
* RESOLVED FURTHER that, pursuant to Section 49 of the 18th Congress Rules of the House of Representatives, all of the House Bills and House Resolutions relative to the grant or renewal of the franchise application of ABS-CBN Corporation are hereby laid on the table; and the authors thereof shall be notified in writing and, as far as practicable, through electronic mail of the action within five (5) days stating the reason(s) thereof.

## Issues

The primordial issue for the Court's resolution is whether or not the NTC gravely abused its discretion in issuing the assailed CDO against ABS-CBN.

At the onset, it is imperative to point out that based on our Constitution and laws, a legislative franchise is both a pre-requisite and a continuing requirement for broadcasting entities to broadcast their programs through television and radio stations in the country.

Broadly speaking, "a franchise is defined to be a special privilege to, do certain things conferred by government on an individual or corporation, and which does not belong to citizens generally of common right."

Indeed, the adoption of the TWG's recommendation by the House Committee on Legislative Franchises is considered as the official expression of the legislative will that has dispelled any previous uncertainty regarding ABS-CBN's franchise status insofar as the pending franchise renewal bills are concerned.

To expound, "[a] case or issue is considered moot and academic when it ceases to present a justiciable controversy by virtue of supervening events, so that an adjudication of the case or a declaration on the issue would be of no practical value or use. In such instance, there is no actual substantial relief which a petitioner would be entitled to, and which would be negated by the dismissal of the petition. Courts generally decline jurisdiction over such case or dismiss it on the ground of mootness. This is because the judgment will not serve any useful purpose or have any practical legal effect because, in the nature of things, it cannot be enforced."

Thus, even if the CDO is annulled as prayed for, ABS-CBN cannot altogether resume its broadcast operations through its radio and television stations because its legislative franchise therefor bad already expired and that, considerh1g the denial of the House Committee on Legislative Franchises, has not been renewed.

The congressional deliberations on pending bills are not equivalent and cannot take the place of a duly enacted law, which requires the entire constitutional process for legislation to take its full course.

In closing, while the Court understands the plight and concerns of ABS-CBN, its employees, and its supporters in general, it wishes to emphasize that the act of granting or renewing legislative franchises is beyond the Court's power. Congress has the sole authority to grant and renew legislative franchises for broadcasting entities, such as ABS-CBN, to legally broadcast their programs through allocated frequencies for the purpose.

## Decisions

**WHEREFORE**, the Court resolves to: (1) **DROP** the House of Representatives and the Senate of the Philippines as parties to this case; and (2) **DISMISS** the petition on the ground of mootness.

## Trivia

\* As per the Court's Resolution dated May 19, 2020, the Senate and the House of Representatives of the Philippines were both impleaded as parties to this case, and consequently, directed to file their respective comments to the petition (see rollo, pp. 320-AA-320-CC). However, for the reasons discussed below, they are dropped as parties to this case; hence, their non-inclusion in the caption.