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Los Angeles Times
Los Angeles Times
World
Jessica Meyers

Philippines government orders news site to close amid concerns about the loss of press freedoms

BEIJING _ Rappler, a digital pioneer in the Philippine media scene, won international awards for its critical, unabashed look at President Rodrigo Duterte's deadly drug war.

Now the independent news site is trying to stay alive.

Philippine authorities on Monday ordered Rappler to close, infuriating media rights groups and casting uncertainty on the sanctity of press freedoms in this 3-decade-old democracy.

The Securities and Exchange Commission said Rappler had used a "deceptive scheme" to violate constitutional rules that require media companies to be fully owned by Filipinos. The publication denied the claim and vowed to appeal.

This decision occurs amid a broader questioning of the press' role in society and its continued independence. Hungary's largest opposition newspaper suddenly closed in 2016 under allegations of government pressure. Cambodia shuttered its independent English-language newspaper last year, with the headline on its last article warning "Descent Into Outright Dictatorship."

President Donald Trump regularly targets unfavorable reports as "fake news" and has promised "dishonest and corrupt media of the year" awards this week. But the Philippines case especially worries rights advocates, who fear it signals a further step toward strongman rule.

"The Commission is ordering us to close shop, to cease telling you stories, to stop speaking truth to power, and to let go of everything that we have built _ and created _ with you since 2012," the popular outlet said in a Monday note to its readers.

The SEC did not require Rappler to shut down immediately, and the orange-rimmed website continued to operate Tuesday with its own future presented as the top story.

Regulators claim Rappler broke the rules in its relationship with Redwood City, Calif.-based Omidyar Network, a philanthropic investment company started by eBay founder Pierre Omidyar.

Rappler acknowledged its two foreign investors: Omidyar and North Base Media, a firm that focuses on media companies in emerging markets. But the new site insists investments went through so-called depository receipts that allow Filipino companies to access international funding without ceding ownership.

"This is pure and simple harassment," the outlet said in its note.

Harry Roque, the president's spokesman, told reporters Tuesday that Duterte had nothing to do with the order from the five-person commission. It was made "by individuals who were not his appointees," Roque said. "He could not control the majority of the commissioners."

Other media companies also use depository receipts. But regulators point to a clause in the deal between Rappler and Omidyar that they say could allow the California company to interfere in management decisions.

Omidyar called the ruling "an unfortunate interpretation" and denied any ownership in the news site.

North Base Media also questioned the order. "Revoking a company's license to operate over a contractual clause that the SEC could just as easily have ordered changed seems both extreme and political," Marcus Brauchli, the organization's co-founder and former top editor of the Wall Street Journal and Washington Post, said in an email.

Not everyone sees the decision through the veil of politics. Rappler is "just crying foul over a legal issue," said Eduardo Araral, associate professor at the Lee Kuan Yew School of Public Policy in Singapore, who tracks Philippine contemporary society. "There are so many media critics against Duterte and he's let them be."

The situation adds to tensions that Duterte is abandoning the democratic principles of his predecessor for an approach closer to dictator Ferdinand Marcos, who silenced newspapers and jailed opponents.

Police arrested one of Duterte's toughest critics last year on drug trafficking charges and his vice president has accused him of quashing dissent. Duterte this December extended martial law in the country's south despite lawmaker misgivings. His anti-drug campaign has left at least 7,000 people dead.

The president repeatedly attacks news outlets for their coverage, even using his state of the nation address last year to accuse Rappler of total American ownership.

"My bet is if Rappler hadn't been so critical of the government ... this case wouldn't have come about," said Malcolm Cook, senior fellow at the ISEAS-Yusof Ishak Institute in Singapore, who studies the Philippines.

Filipino journalists, lawmakers, and international rights organizations quickly responded with anger and fear.

Sen. Risa Hontiveros called the decision "Marcosian," on Twitter and "a move straight out of the dictator's playbook."

The Committee to Protect Journalists condemned the order as a "direct assault on freedom of the press." The Foreign Correspondents Assn. of the Philippines said it was "tantamount to killing the online news site."

Rappler _ whose name comes from slang "rap," to discuss, and "ripple," to make waves _ plans to try its luck in court.

"We will continue bringing you the news, holding the powerful to account for their actions and decisions, calling attention to the government lapses that further empower the disadvantaged," the outlet said in its note. "We will hold the line."

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