ABS-CBN answers quo warranto case at Supreme Court

As its executives faced the Senate for a franchise hearing, ABS-CBN on Monday answered Solicitor General Jose Calida's petition seeking the revocation of the network's license to operate.

The broadcast company also filed its comment to the Office of the Solicitor General's (OSG) motion for a gag order prohibiting the parties from publicly discussing the merits of the case.

Government lawyers earlier asked the high court to forfeit ABS-CBN's franchise due to its alleged "highly abusive practices."

The OSG alleged that ABS-CBN has been operating a pay-per-view channel, the Kapamilya Box Office (KBO) channel, on free-to-air signals without a permit from the National Telecommunications Commission (NTC).

It also claimed the network issued Philippine Depositary Receipts to foreigners and alleged that ABS-CBN Convergence, Inc. resorted to an "ingenious corporate layering scheme" to transfer its franchise "without the necessary Congressional approval."

In its first statement after the filing, ABS-CBN claimed it did not violate the law.

In a subsequent filing, the OSG asked the court to bar the parties from discussing the case, saying reports made by ABS-CBN on the petition amounted to propaganda and violated the sub judice rule.

The sub judice rule restricts parties from publicly commenting on pending cases to avoid their prejudging. —KBK, GMA News