MANILA, Philippines - The Securities and Exchange Commission (SEC) revokes license of online news site Rappler for alleged violation of foreign ownership restrictions, the company confirmed on Monday, January 15.
SEC said Rappler violated constitutional restrictions on ownership and control of mass media entities because of funds coming Omidyar Network, a fund created by eBay founder and entrepreneur Pierre Omidyar.
"(t)he 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," statement from SEC decision reads.
Here's the full 29-page document detailing the SEC decision:
Rappler meanwhile said the commission approved the deal with Omidyar in 2015.
"What this means for you, and for us, is that the Commission is ordering us to close shop, to cease telling you stories, to stop speaking truth to power, and to let go of everything that we have built – and created – with you since 2012," the news site said in a statement.
During the SONA of President Rodrigo Duterte in July last year, the highest official threatened to investigate the ownership of Rappler. The company has debunked the allegation and claimed that foreign investors, Omidyar Network and North Base Media, do not own Rappler.
Statement from Malacañang
"The Security and Exchange Commission (SEC) is empowered to determine the legality of corporations.
"We respect the SEC decision that Rappler contravenes the strict requirements of the the law that the ownership and the management of mass media entities must be wholly-owned by Filipinos.
"Rappler may wish to exhaust all available legal remedies until the decision becomes final."
Netizens react
As the company asks to stand with them, supporters and followers pour their views on social media.
Tell us your thoughts on SEC decision to close Rappler.
— The Summit Express
SEC said Rappler violated constitutional restrictions on ownership and control of mass media entities because of funds coming Omidyar Network, a fund created by eBay founder and entrepreneur Pierre Omidyar.
"(t)he 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," statement from SEC decision reads.
Here's the full 29-page document detailing the SEC decision:
Rappler meanwhile said the commission approved the deal with Omidyar in 2015.
"What this means for you, and for us, is that the Commission is ordering us to close shop, to cease telling you stories, to stop speaking truth to power, and to let go of everything that we have built – and created – with you since 2012," the news site said in a statement.
During the SONA of President Rodrigo Duterte in July last year, the highest official threatened to investigate the ownership of Rappler. The company has debunked the allegation and claimed that foreign investors, Omidyar Network and North Base Media, do not own Rappler.
Statement from Malacañang
"The Security and Exchange Commission (SEC) is empowered to determine the legality of corporations.
"We respect the SEC decision that Rappler contravenes the strict requirements of the the law that the ownership and the management of mass media entities must be wholly-owned by Filipinos.
"Rappler may wish to exhaust all available legal remedies until the decision becomes final."
Netizens react
As the company asks to stand with them, supporters and followers pour their views on social media.
To friends worrying if we're shutting down today – no, we aren't. This is not executory at the moment, and we're taking this to court.— Marga Deona (@margadeona) January 15, 2018
Thank you for supporting @rapplerdotcom, for believing in what we stand for.
For now, it's business as usual. Back to work.
A sad day for democracy and press freedom. We at Rappler received the SEC’s kill order revoking our license to operate - the first of its kind in Philippine history. This is a clear, distinct attack on media by govt. We won’t allow it. https://t.co/fOjzA23OPC— Natashya Gutierrez (@natashya_g) January 15, 2018
The revocation of Rappler's registration is pure harassment and a clear attack on press freedom. It is also Marcosian. It's a move straight out of the dictator's playbook. I urge the public and all media practitioners to defend press freedom & the right to speak truth to power.— risa hontiveros (@risahontiveros) January 15, 2018
Did foreigners invest in @rapplerdotcom? Yes. Do foreigners own Rappler? No.— JR CASTILLO (@JRDCastillo24) January 15, 2018
Did the Marcoses invest in Duterte? YES. Who owns Duterte? It’s a shared ownership between the Marcoses and China.
#IStandWithRappler #WeWillHoldTheLine
Lots of love for Rappler online right now, and rightly so.— Manuel L. Quezon III (@mlq3) January 15, 2018
Tell us your thoughts on SEC decision to close Rappler.
— The Summit Express
