(Eagle News)–The Court of Appeals has denied Rappler Inc.’s and Rappler Holdings Corp.’s motion for it to reconsider its upholding of a Securities and Exchange Commission decision that ruled the two violated constitutional restrictions on foreign ownership of mass media.
In denying the motion for partial reconsideration, the former special twelfth division noted the petitioners did not raise any new matter or issue.
“While there is no denying that a full compliance with the procedure under the 2016 SEC rules was not observed by the SEC, a substantial compliance with the requirements of procedural due process was clearly accorded to the petitioners,” the division said, upholding its July 2018 decision that also ordered the SEC to look into the possible legal effects of Omidyar donating the Philippine Depositary Receipts sold to it by Rappler to Rappler staff, who are all Filipinos, following the controversy.
The SEC had argued Rappler’s sale of the PDRs to the foreign entity was tantamount to giving it control over the media outfit’s corporate decisions, a violation of the Constitution.
In its March decision, however, the division refused to touch on the issue of the donation, which the petitioners had argued had a ”curative” effect on the offense they were being accused of committing by the SEC.
According to the division, this was “so as not to preempt the evaluation and subsequent finding and conclusion to be reached by the SEC.”
“Wherefore, this court resolves to deny the motion for partial reconsideration dated Aug 17, 2018 for lack of merit. The decision dated July 26,2018 stands,” the division said.
