House panel rejects ABS-CBN franchise application

(UPDATED) The House of Representatives committee on legislative franchises, voting 70-11 on Friday, July 10, 2020, denied the application of ABS-CBN Corporation for a new 25-year franchise.

ABS-CBN may file a motion for reconsideration or re-file its application as long as bills seeking to renew its franchise are filed.

The committee voted on the recommendation of the technical working group (TWG) tasked to study the application following 12 marathon hearings.

The group, composed of Cebu 3rd District Representative Pablo John Garcia, Camiguin Rep. Xavier Jesus Romualdo and Marikina Rep. Stella Quimbo, recommended that the application be rejected based on the following:

• The American citizenship and doubtful Filipino citizenship and allegiance to the Philippines of ABS-CBN chairman emeritus Eugenio “Gabby” Lopez III;
• ABS-CBN’s possible violation of the constitutional prohibition against ownership and management of mass media by foreigners;
• ABS-CBN’s numerous violations of the terms of its legislative franchise;
• questionable and unjust, if not immoral, tax avoidance schemes;
• apparent use of a dummy; and
• less than exemplary labor practices.