DICT Backs Franchise Requirement for Social Media Firms

The Department of Information and Communications Technology (DICT) on Monday said it supports Congressional proposals to require social media companies to obtain a franchise to operate in the Philippines. “We fully support the initiative of the Congress (to require) online platforms to obtain a franchise,” DICT Secretary Henry Rhoel R. Aguda told reporters on the sideline of the eGovAI launch. This comes as the House of Representatives moved to defer hearings on the DICT budget over unresolved user-safety issues with Meta Platforms, Inc., the parent company of Facebook. Mr. Aguda said the National Telecommunications Commission is currently studying the possibility of requiring online media platforms to obtain a franchise to operate. “Broadcasters need to obtain a franchise to operate. Aren’t these (platforms) broadcasters? Whether or not they use frequencies, in essence, they are broadcasting. Their reach is wide,” he said. House Bill No. 4786 seeks to amend Commonwealth Act No. 146, or the Public Service Act, by classifying social media platforms as public services that would require a congressional franchise. The proposal would impose a franchise requirement on any platform operating within the Philippines or serving Filipino users, with a user base exceeding a threshold to be determined by the implementing rules and regulations. “These foreign-based platforms often operate with limited physical presence in the Philippines, making it challenging for the government to enforce laws, demand accountability for content moderation failures, address consumer complaints and ensure equitable tax compliance,” according to the bill’s explanatory note. The DICT said it continues to demand concrete action from Meta, citing instances of violence among children allegedly inspired by social-media exposure, online sexual abuse, and the exploitation of children and the proliferation of harmful materials. “The DICT together with the NPC (National Privacy Commission) will issue an advisory to the public that Meta and all other digital platforms should comply with the data privacy laws of the country,” he said. The DICT has issued a compliance order to Meta, Mr. Aguda said. “Meta needs to comply with the privacy requirements of the Philippines. If they do not comply, they will take to another level where NPC might go there and inspect… and eventually (issue a) cease-and-desist order,” he said. Separately, the DICT said it is set to release a tool to help monitor the operations of free Wi-Fi sites amid reports of ghost internet projects. “It is a map of free Wi-Fi with location of all access points, including (status) if it is live or down. We welcome these initiatives,” he said. “The DICT takes seriously the reports of alleged irregularities involving government-funded information technology and connectivity projects currently under investigation by the Office of the Ombudsman,” it said in a statement.