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[av_heading tag=’h3′ padding=’10’ heading=’News website Rappler’s license to operate revoked’ color=” style=’blockquote modern-quote’ custom_font=” size=” subheading_active=’subheading_below’ subheading_size=’15’ custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][/av_heading]
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January 15, 2018
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MANILA – The Securities and Exchange Commission revoked the online news organization Rappler’s license to operate.
Rappler, Inc. and its controlling shareholder, Rappler Holdings Corp., violated “the constitutional and statutory Foreign Equity Restrictions in Mass Media enforceable through rules and laws within the mandate of the Commission,” the SEC en banc said.
According to the commission, the news organization was getting foreign funding from Pierre Omidyar, founder and chairman of online marketplace eBay.
“The foreign equity restriction is very clear. Anything less than 100 percent Filipino control is a violation,” the SEC said in a Jan. 11 resolution. “Conversely, anything more than exactly zero percent foreign control is a violation.”
The SEC also declared “void” the Philippine depositary receipts issued to Omidyar and cited this as a “fraudulent” transaction under the Securities Regulation Code.
‘HARASSMENT’
Rappler regarded the SEC ruling as “pure and simple harassment.”
Since its founding in 2012, Rappler said, it has fully complied with all SEC regulations “even at the risk of exposing our corporate data to irresponsible hands with an agenda.”
The organization plans to contest the SEC decision “through all legal processes available to us.”
Rappler denied the SEC’s claim that Omidyar Network, a fund created by Omidyar, controlled its operations.
“Philippine depositary receipts do not indicate ownership,” it said. “This means our foreign investors, Omidyar Network and North Base Media, do not own Rappler.” (Prince Golez/PN)
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