In a major victory for Rappler, the Court of Appeals (CA) has nullified the 2018 shutdown order issued by the Securities and Exchange Commission (SEC) during the Duterte administration, effectively restoring the company’s certificate of incorporation. The ruling, promulgated on July 23, concluded that Rappler and its holding company, Rappler Holdings Corporation, were wholly owned and managed by Filipinos, complying with the constitutional mandate.
The SEC had initially revoked Rappler’s certificate, citing issues with Philippine Depositary Receipts (PDRs) issued to a foreign investor, Omidyar Network. However, Omidyar’s subsequent donation of these PDRs to Rappler’s Filipino managers in 2018 led the CA to question the SEC’s decision, urging a reevaluation that was not adequately addressed.
In a strongly worded decision, the CA criticized the SEC’s actions as biased and procedurally flawed, accusing the commission of “grave abuse of discretion.” The court emphasized that Rappler’s ownership structure remained fully compliant with Philippine laws, dismissing the SEC’s concerns about foreign influence.
Rappler’s legal team and supporters welcomed the decision, viewing it as a significant affirmation of press freedom in the Philippines. The CA ruling also pointed out that PDRs are common financial instruments and should not have been used to undermine the operations of a mass media entity.
With this legal victory, Rappler now faces only two remaining cases, including a cyberlibel conviction being appealed by CEO Maria Ressa and an anti-dummy case linked to the PDR issue.