SolGen Calida ready to defend SEC’s ‘sound’ decision vs. Rappler

Solicitor General Jose Calida on Monday praised the Securities and Exchange Commission's decision to revoke the incorporation papers of news website Rappler for supposedly violating foreign ownership restrictions for mass media.

"I applaud the SEC for revoking Rappler’s certificate of incorporation. This decision demonstrates that even influential media outfits cannot skirt the restrictions set forth in the Constitution," Calida said in a statement.

Calida added that his office is ready to defend the "sound" decision in any forum even as he urged Rappler to challenge the same before the courts.

In its ruling, the SEC cited the Foreign Equity Restriction of the Philippine Constitution, which states that "[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."

According to the SEC, Rappler welcomed Omidyar Network—which the media organization said is "the fund created by eBay founder and entrepreneur Pierre Omidyar and his wife Pam—as an investor in the online mass media outlet.

Rappler questioned the timing of the decision, labeling it as harassment. The media outfit also said it will contest the decision. — BM, GMA News