G.R. No. 252119 , August 25, 2020
ABS-CBN Corporation, Petitioner, vs. National Telecommunications Commission, Respondent.

FACTS

Petitioner ABS-CBN Corporation was granted a 25-year legislative franchise under Republic Act No. 7966 , effective until May 4, 2020. Prior to its expiration, bills for its renewal were filed in the 16th, 17th, and 18th Congress. During Senate hearings in February 2020, the NTC Commissioner stated that, based on past practice and pending advice from the Department of Justice (DOJ), it would issue a Provisional Authority to allow ABS-CBN to continue operating after its franchise expired, pending congressional renewal. The DOJ, in a letter dated February 26, 2020, noted an “established practice” of allowing continued operations under such circumstances and stated the NTC could provisionally authorize operations. On the same date, the House Committee on Legislative Franchises sent a letter to the NTC enjoining it to grant ABS-CBN a provisional authority to operate effective May 4, 2020, pending Congress’s decision. On March 10, 2020, the NTC Commissioner declared it would follow the DOJ’s advice and allow ABS-CBN to continue operations based on equity. However, on May 3, 2020, the Solicitor General warned the NTC against granting a provisional authority, stating it would be unlawful without a franchise. On May 5, 2020, following the expiration of RA 7966 on May 4, 2020, the NTC issued a Cease and Desist Order (CDO) directing ABS-CBN to immediately stop operating its radio and television stations. ABS-CBN complied and went off-air. On May 7, 2020, ABS-CBN filed a Petition for Certiorari and Prohibition, arguing the NTC committed grave abuse of discretion in issuing the CDO.

ISSUE

Whether the National Telecommunications Commission committed grave abuse of discretion amounting to lack or excess of jurisdiction in issuing the Cease and Desist Order dated May 5, 2020, which directed ABS-CBN Corporation to cease and desist from operating its radio and television stations due to the expiration of its legislative franchise.

RULING

The Supreme Court DISMISSED the petition for being moot and academic. The Court found that the core issue—the validity of the CDO based on the expiration of ABS-CBN’s franchise—had been overtaken by subsequent events. The Court noted that on May 13, 2020, House Bill No. 6732 was filed, seeking to grant ABS-CBN a provisional franchise until October 31, 2020. This bill was subsequently passed by the House of Representatives as Republic Act No. 11452 , which lapsed into law on July 3, 2020, granting ABS-CBN a temporary franchise until the end of the 18th Congress. The Court held that with the enactment of this new law, the CDO, which was based solely on the expiration of the old franchise under RA 7966, no longer had any legal effect. Since ABS-CBN’s operations could now be governed by the new temporary franchise, any ruling on the propriety of the CDO would have no practical legal effect. The Court emphasized that judicial power requires an actual case or controversy, and it will not determine moot questions or abstract propositions. Therefore, the petition was dismissed.