SEC Opinion 21-02: Nationality Rules; Public Utility or Mass Media

In SEC-OGC Opinion No. 21-02 dated February 16, 2021, the Securities and Exchange Commission (“SEC”) was asked whether a corporation which establishes, operates, maintains and/or manages commercial radio and television broadcasting station is a public utility or mass media entity.

The SEC explained that the term “mass media” refers to any medium of communication designed to reach the masses and that tends to set the standards, ideals and aims of the masses. It means the gathering, transmission of news, information, messages, signals, and forms of written, oral and all visual communications, and embraces print medium, radio, television, film, movies, wire and radio communication services. The distinctive feature of any mass media undertaking is the dissemination of information and ideas to the public, or a portion thereof. The citizenship requirement is intended to prevent the use of such facility by aliens to influence public opinion to the detriment of the best interests of the nation. 

Additionally, under the Rules and Regulations for Mass Media in the Philippines adopted by the Media Advisory Council, the term “mass media” embraces means of communication that reach and influence large numbers of people including print media (especially newspapers, periodicals and popular magazines) radio, television, and movies, and involved the gathering, transmission and distribution of news, information, messages, signals and all forms of written, oral and visual communications.

In a previous opinion, the SEC opined that “the activities of live productions, short and full-length television shows and movies, and direct to audience, all constitute the dissemination of information and ideas to the public, and tend to influence the public’s standards, ideals, aims and opinion.”

Thus, a corporation which establishes, operates, maintains and/or manages commercial radio and television broadcasting station is a mass media entity. By maintaining and operating a commercial radio and television broadcasting station, the company will essentially be disseminating information, messages, signals and all forms of written, oral and visual communications to the public which will, or may have an influence on the standards, ideals, aims and opinion of the latter. Accordingly, it falls within the coverage of the constitutional mandate limiting ownership and management of mass media to citizens of the Philippines or wholly owned and managed Philippine corporations.

Although the operation and maintenance of radio and television broadcasting station can be considered “public service” as the same is covered by the phrase “wire or wireless broadcasting stations,” and even assuming that the services of such company may fall under the definition of a “public utility,” the same are still considered mass media entities, for which the Constitution provides a stricter rule.

Hence, the SEC opined that while radio and television broadcasting stations are entities engaged in “Public Service,” the same are considered as engaged in “mass media” activities and are therefore covered by the nationality rules governing mass media. The constitutional provision on mass media is intended to prevent the use of such facility by aliens to influence public opinion to the detriment of the best interest of the nation.