Media companies in the Philippines
Social networking sites are effective tools to reach a wider audience or maintain a certain “following” of people. They promote freedom of speech, of expression, and of the press not only of media companies but also of ordinary citizens given the interactive means in which these networking sites operate. This is a basic right guaranteed by our Constitution.[1]
Their use also supports the right to information on matters of public concern.[2] People are provided with timely and easy access to news and information on matters concerning public interests. Social networking sties play an important role in shaping public opinion, promoting awareness and advocacies on political and social issues, mobilizing resources, and enhancing capacities of our people during natural calamities and disasters.
However, the use of facebook or twitter can be subject to certain prohibitions and restrictions. Under the Philippine Constitution, the State preserves its right to regulate or prohibit monopolies when the public so requires, or prohibit combinations in restraint of trade and other unfair trade practices.[3] The Revised Penal Code penalizes fraudulent acts in restraint of trade or commerce, including acts which prevent by artificial means or, in combination with other persons, monopolize merchandises or objects, alter the price, and restrain free competition in the market.[4] The Civil Code likewise allows an injured person to collect civil damages arising from unfair competition or abuses of dominant positions through monopolies. Special laws such as the Corporation Code, Revised Securities Act, and the Intellectual Property Code also govern the various aspects of competition, trade, and business practices, defining and penalizing certain acts as illegal to protect consumers and safeguard public order.
Our laws follow those of the United States’ competition rules. The Sherman Act, which regulates dominant firms holding 50-60% of the market, provides that a person who shall monopolize, or attempt to monopolize or combine or conspire with any other person or persons to monopolize any part of trade or commerce, shall be deemed guilty of a felony. Using the so called “rule of reason approach,” the law finds illegal, acts which tend to abuse a dominant position and power in the market, and not dominance alone. Other laws such as the Clayton Act and the Robinson-Patman Act provide that acts that pertain to price determination and tying explicitly are illegal. [5]
The European Union (EU) has the same competition laws forbidding cartels, abuse of dominant position, and mergers and acquisitions that restrict free competition. Such practices are governed by the EU competition laws, particularly, the 1957 Treaty of Rome. Enforcement however is different in that the EU system is only administrative, not both criminal and administrative in character compared with the US
At this point, I find the American system more applicable in the Philippines Philippines
Given this, media companies may continually be allowed to use ICT advances to promote a common good, provided that they are kept within the boundaries set by law. Philippine laws do not specifically restrict media companies from using social networking sites such as facebook and twitter to advertise their broadcast. An information and communication system which allows an account holder to choose his or her domain, following, or “friends,” including the right to disregard, delete, block, or “spam” certain information or data messages from his or her own account protects the consumer’s right to privacy and fair deal.
More importantly, we should not lose sight of the possible abuse of dominant position e.g., by infringement when the persistent use of such advertisements is without proper representation or authority from these sites. Advertising is basically a form of marketing and media remains, in this sense, a business created for profit. The free and unauthorized use of social networking sites not for personal but for commercial purposes borders on being abusive because they ride on the popularity of these sites for their own business advantage.
Disclaimer: The opinions expressed are personal and do not provide professional legal advice.
[1] Section 4, Article III Bill of Rights, Philippine Constitution.
[2] Section 7, Article III Bill of Rights, Philippine Constitution.
[3] Section 19, Article XII, National Economy and Patrimony, Philippine Constitution.
[4] Article 186, Chapter III of the Revised Penal Code.
[5] Brouwer, Maria. US and EU Competition Policy on Abuse of Dominance in High Tech Industries. University of Amsterdam Department of Economics. 2011.
[6] Brouwer. 2011 and Pereira, Miguel. 2002. EU Competition Law, Convergence, and the Media Industry. European Commission. Media and Music Publishing Unit.
