The court has ruled that the commission must restore the company’s certificate of incorporation.
In an order from the Court of Appeals (CA), it voided the 2022 memorandum of the Securities and Exchange Commission (SEC) declaring Rappler Holdings Corporation as non-compliant to the 100% Filipino-ownership rule.
The CA Special 7th Division said in its decision that “[t]he Securities and Exchange Commission is ordered to restore the Certificate of Incorporation of Rappler, Inc. and Rappler Holdings Corporation in its records and system and withdraw all its issuances and actions made pursuant to its illegal revocation of the same.”
The same court also found that Rappler’s parent firm is wholly-owned by Filipinos, thus is operating in accordance to the Constitution that restricts media ownership in the country to its citizens.
Rappler, in its statement, said that the CA decision is “a vindication after a tortuous eight years of harassment.”
“The CA was unequivocal in its rejection of the SEC’s 2018 shutdown order, declaring it “illegal” and a “grave abuse of discretion,” the media company added.
Moreover, the court win “brings us [Rappler] relief and joy that the CA is standing with us — and with journalism. This inspires us to do more, do better.”
Rappler also sought the “speedy dismissal of our remaining two cases: the cyber libel case at the Supreme Court and the anti-dummy case at a Pasig court.”
“This court decision, the latest in a string of court victories for Rappler, is a much-needed reminder that the mission of journalism can thrive even in the line of fire: to speak truth to power, to hold the line, to build a better world,” the news organization ended their statement.
Rappler’s debacle at the SEC began in January 2018 after the commission’s en banc decided to cancel the media company’s certificate of incorporation after a probe into the issuance of Philippine Depositary Receipts (PDRs) to Omidyar Network — a fund by eBay founder Pierre Omidyar.
SEC en banc, at that time, said that the “Foreign Equity Restriction is very clear. Anything less than 100 percent Filipino control is a violation.”
In June 2022, the SEC upheld the 2018 decision, which threatened the very existence of Rappler.
On the PDRs, CA said that the terms of the parties clearly indicated that Rappler Holdings, a 100% Filipino-owned firm, continued to have the full ownership of the media company.