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The Online Citizen's (TOC) application to commence judicial review proceedings against the InfoComm Media Development Authority (IMDA) has been dismissed by the High Court

IMDA issued a press release on Dec. 16, which among other things, noted that the High Court's decision confirmed the suspension of TOC's Chinese website and social media accounts.

Background: TOC's failure to declare funding sources

IMDA cancelled TOC's class license on Oct. 15.

According to IMDA, TOC had failed to comply with the requirement to make an annual declaration of its funding sources in respect of TOC’s 2020 Undertaking and Statutory Declaration.

This was despite multiple reminders and extensions of time granted by IMDA.

IMDA suspended TOC’s class licence on Sep. 14, 2021, and gave TOC a final deadline of Sep. 28, 2021 to submit the required information, before its cancellation.

IMDA reiterated that the requirement to declare funding sources annually is to prevent registered Internet Content Providers from being controlled by foreign actors or coming under the influence of foreign entities or funding, to ensure there is no foreign influence in domestic politics.

Class license covers all online services

In its application to commence judicial review proceedings, TOC did not challenge IMDA's suspension of TOC's class license.

Instead, TOC took the position that the suspension of its class license only affects its ability to operate its English websites, and that IMDA could not require TOC to disable its Chinese website or social media accounts.

However, the High Court affirmed that TOC's class license covers their provision of all online services.

Hence, the suspension of the class license applies to all of TOC's online services, including its Chinese website and social media accounts.

In addition, the High Court further noted that TOC had failed to follow the procedure provided by law to appeal to the Minister for Communications and Information (Josephine Teo) under the Broadcasting Act, before applying to commence the judicial review proceedings.

The applicant is expected to exhaust all alternative remedies before applying to the court to commence judicial review proceedings.

TOC's subscription revenue

According to a Facebook post shared on Sep. 7 by TOC's chief editor, Terry Xu, IMDA's issues with TOC's 2019 declarations had been addressed, and the issue of subscription revenue was "the sole reason" for TOC's current non-compliance.

One of TOC's revenue sources is subscription fees from its website's readers, which IMDA said was allowed as a revenue model under its license.

In Xu's Sep. 7 Facebook post, he wrote that TOC has explained "how the subscription model works" to IMDA.

However, IMDA said it repeatedly asked TOC to clarify various elements of its subscription framework, due to concerns over potential foreign influence.

One element of TOC's subscription framework allowed "subscribers" to get specific articles written, in return for "subscription funding" received, IMDA said.

IMDA said that "TOC has insisted for such 'subscriptions' to be excluded from full declaration of funding sources, while refusing to provide further information to clarify its overall subscription framework".

"This is not consistent with full disclosure and transparency," it added.

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Top images via IMDA and Terry Xu's Facebook page (Image taken before Safe Management Measures).

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