The lawmakers in the House of Representatives are exploring an amendment to the Public Service Act that would require social media platforms to obtain a legislative franchise to operate in the Philippines. This move aims to address the spread of online disinformation while also ensuring these platforms comply with existing laws and tax regulations. However, Senate President Chiz Escudero has raised constitutional concerns regarding the proposal, emphasizing that it must withstand legal scrutiny to avoid violating fundamental freedoms.
A Legislative Franchise for Social Media
During the House Tri-Committee’s second hearing on 18 February 2025, Surigao del Norte Representative Robert Ace Barbers proposed that social media companies should secure a franchise from Congress, similar to television and radio stations, as well as public utilities such as water and electricity providers. He argued that such a requirement would make these platforms more accountable.
Abang Lingkod party-list Representative Joseph Stephen Paduano echoed this sentiment, suggesting an amendment to the Public Service Act to categorize social media platforms as public services. The National Telecommunications Commission (NTC), however, clarified that these platforms are not currently classified as public utilities since they do not have a physical presence in the country.
The House panel is also looking into policies in countries like Singapore and Brazil that regulate online content, though rights groups have raised concerns about potential infringements on free speech and data privacy.
Escudero: Proposal Must Pass Constitutional Test
Senate President Chiz Escudero has weighed in on the issue, stressing that any law requiring social media platforms to secure a franchise must comply with constitutional provisions on free speech and press freedom.
He pointed out that the Constitution explicitly prohibits prior restraint and laws that abridge freedom of speech, expression, or the press. “That phrase — speech, expression, and press — already has a different meaning given the internet. It will have to stand constitutional scrutiny if the proposed law moves forward,” Escudero said.
While he acknowledged the dangers of misinformation, he also expressed confidence in the public’s ability to discern credible information from fake news. He warned against underestimating Filipinos’ media literacy and urged lawmakers to consider alternative solutions that do not infringe on constitutional rights.
Addressing Taxation & Content Regulation
A key issue raised during the hearing was the difficulty in taxing digital platforms operating outside the country. Yves Gonzalez, Google Philippines’ head of government affairs and public policy, explained that advertising revenue from platforms like YouTube goes directly to Google LLC, which is based abroad, making it challenging for the Bureau of Internal Revenue (BIR) to collect taxes.
The BIR representative at the hearing admitted that the agency relies on the “voluntary declaration” of online personalities when assessing their tax obligations, highlighting the difficulty in tracking revenue earned from foreign companies.
Meanwhile, Rep. Jose Aquino II called on the Kapisanan ng mga Brodkaster ng Pilipinas (KBP) and the Movie and Television Review and Classification Board (MTRCB) to strengthen their oversight of online video content, noting that broadcasting standards must evolve alongside digital media.
Concerns Over Free Speech & State Overreach
The proposal to require social media platforms to obtain a franchise has drawn criticism from media experts and rights advocates, who warn that such a measure could be used to suppress free speech.
Some argue that misinformation thrives due to algorithmic incentives, political networks, and low media literacy rather than weak regulation while some expressed concerns that legislative franchises could be “weaponized,” citing the non-renewal of ABS-CBN’s franchise in 2020 as an example.
Next Steps for the House Tri-Committee
The House Tri-Committee, composed of the Committees on Public Order and Safety, Public Information, and Information and Communications Technology, is set to draft a regulatory framework for social media platforms. This may include requiring a congressional franchise and imposing stricter content regulations.
Lawmakers have also issued show-cause orders to the Philippine representatives of Facebook and TikTok after the companies failed to attend the latest hearing. The panel seeks to determine how best to regulate digital platforms without infringing on fundamental rights.
While proponents argue that requiring a legislative franchise for social media platforms will promote accountability and tax compliance, critics — including Senate President Escudero — warn that it could lead to censorship and state overreach. The debate continues as lawmakers weigh the potential benefits and risks of increased regulation in the digital space.