Philippine Court Suspends Contentious Internet Law

“We respect and will abide by it,” Justice Secretary Leila de Lima wrote in a text message to reporters on Tuesday, referring to the court’s unanimous decision to suspend enforcement of the law for 120 days. “Our advocacy for a safe cyberspace and interdiction of organized crime will continue.”

Fifteen petitions were filed with the court opposing the law, the Cybercrime Prevention Act of 2012, which took effect Oct. 3. A spokeswoman for the high court, Maria Victoria Gleoresty Guerra, said the government had 10 days to file an initial response to the petitions. Oral arguments are scheduled for Jan. 15, she said.

The law establishes penalties for various computer-related crimes, including child pornography, identity theft, online fraud and illegally accessing computer networks. It also makes online libel punishable by imprisonment, which critics said could result in the criminalization of common activities like sharing Facebook and Twitter posts.

Critics also said that the law gave the government wide-ranging powers to amass information on Internet users and to block Web sites. The passage of the law was followed by a public outcry, including street protests, social media campaigns and the hacking of government Web sites.

Senator Edgardo J. Angara, the author of the legislation in the Senate, said he welcomed the suspension so that the law could be publicly debated and better understood.

“What the Cybercrime Prevention Act does is only to regulate socially destructive acts,” Mr. Angara said, “because you cannot enjoy your right fully and confidently if others have an equal right to interfere with your right.”

Others pledged to fight until the law is repealed or struck down by the Supreme Court.

“A temporary restraining order, unanimously issued, is the first victory in our battle to defend our freedom and right of expression,” said Senator Teofisto D. Guingona III, who voted against the measure. “For a court to issue a T.R.O. unanimously is a strong message of its belief that the dangers and fears of the people are real and must be addressed.”

Human Rights Watch called Tuesday for the high court to strike down the law and for any new Internet legislation to be debated openly.

“All provisions in Philippine law that allow for imprisonment for peaceful expression should be repealed,” said Brad Adams, the organization’s Asia director.

Telefónica Suspends 2012 Dividend and Cuts Compensation

The company, which made the announcement late Wednesday, had maintained a dividend payment despite a slump in domestic earnings since the start of the crisis. It said it would resume dividend payments in 2013, but at half of the €1.50, or $1.80, a share that had been foreseen for 2012.

Analysts had long called for Telefónica to cut or scrap its dividend payments, especially after recent credit rating downgrades by Standard & Poor’s and Moody’s Investors Service that have raised the cost for the company to refinance debt. Telefónica’s net debt stood at €58.3 billion at the end of June.

The company also canceled a share buyback program and released its latest earnings early. Profit for the first half of the year was down 34 percent, to €2.075 billion, the company said.

Telefónica said it decided to shelve its dividend and buyback plans after examining “the prevailing economic situation and financial environment which, for reasons beyond the company’s control, are proving highly unstable.”

It said suspending the dividend would save €6.8 billion.

In another move designed to save cash, Telefónica said it would reduce board members’ compensation by 20 percent and cut senior executives’ pay by 30 percent.

The company also has sizable operations in Latin America that provided almost half of its revenue in the first six months of the year.

After expanding aggressively in Britain, Brazil and elsewhere, Telefónica is now working to divest assets. Among the Spanish assets marked for sale is Rumbo, an online travel company, and Atento, a call center operator.

A year ago, Telefónica called off an initial public offering of Atento, citing volatile market conditions. In May, Telefónica’s board approved plans to sell shares in another subsidiary, 02 Germany, a wireless operator, as well as some of its Latin American telephone businesses.

Telefónica shares fell 5 percent in morning trading Thursday in Madrid but rebounded to close 3.4 percent higher at €8.95.

Telefónica Suspends 2012 Dividend and Cuts Compensation

The company, which made the announcement late Wednesday, had maintained a dividend payment despite a slump in domestic earnings since the start of the crisis. It said it would resume dividend payments in 2013, but at half of the €1.50, or $1.80, a share that had been foreseen for 2012.

Analysts had long called for Telefónica to cut or scrap its dividend payments, especially after recent credit rating downgrades by Standard & Poor’s and Moody’s Investors Service that have raised the cost for the company to refinance debt. Telefónica’s net debt stood at €58.3 billion at the end of June.

The company also canceled a share buyback program and released its latest earnings early. Profit for the first half of the year was down 34 percent, to €2.075 billion, the company said.

Telefónica said it decided to shelve its dividend and buyback plans after examining “the prevailing economic situation and financial environment which, for reasons beyond the company’s control, are proving highly unstable.”

It said suspending the dividend would save €6.8 billion.

In another move designed to save cash, Telefónica said it would reduce board members’ compensation by 20 percent and cut senior executives’ pay by 30 percent.

The company also has sizable operations in Latin America that provided almost half of its revenue in the first six months of the year.

After expanding aggressively in Britain, Brazil and elsewhere, Telefónica is now working to divest assets. Among the Spanish assets marked for sale is Rumbo, an online travel company, and Atento, a call center operator.

A year ago, Telefónica called off an initial public offering of Atento, citing volatile market conditions. In May, Telefónica’s board approved plans to sell shares in another subsidiary, 02 Germany, a wireless operator, as well as some of its Latin American telephone businesses.

Telefónica shares fell 5 percent in morning trading Thursday in Madrid but rebounded to close 3.4 percent higher at €8.95.