MANILA, Philippines — Malacañang on Monday said it respects the order of the Securities and Exchange Commission (SEC) revoking the license of online news website Rappler, saying that it was not an attack on press freedom.
Calling Rappler a “mass media entity that sold control to foreigners,” the SEC, in a 29-page ruling dated January 11, said that Rappler and its controlling shareholder Rappler Holdings Corp. violated the Foreign Equity Restriction in Article XVI.
The Foreign Equity Restriction in Article XVI, Section 11(1) of the Constitution states that “the ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens.”
“We respect the SEC decision that Rappler contravenes the strict requirements of the law that the ownership and the management of mass media entities must be wholly-owned by Filipinos,” Presidential Spokesperson Harry Roque said.
“The issue at hand is the compliance of 100% Filipino ownership and management of mass media. It is not about infringement on the freedom of the press,” Roque added.
Roque also said that SEC is mandated among others to regulate and to determine the legality of the corporate sector.
Roque further emphasized that Rappler must comply with the decision, saying “no one is above the law.
“The Constitution sets restrictions on the ownership and management of mass media entities to which all must abide,” the spokesman said.
However, Roque said Rappler could exhaust other legal means until the decision becomes final.
Rappler, in a statement posted on its website, said that it “will continue bringing you the news, holding the powerful to account for their actions and decisions, calling attention to government lapses that further disempower the disadvantaged. We will hold the line.”
Despite the decision, the online news site continues to operate after filing motion for reconsideration to the courts.