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EPC news - October 2002The monthly update on EU media issues
Market abuseSome concessions but journalists bewareA last minute oral amendment introduced by EP Rapporteur Robert Goebbels still leaves the European financial services regulators (CESR) in the driving seat of media regulation. Although the amendment goes some way to recognising media and journalist groups’ concerns that the existing methods of media self-regulation should be taken into account, it leaves the CESR with delegated powers under the Market Abuse directive to impose a whole new layer of unnecessary and unworkable regulation on the media reporting industry. See fact sheet for background. As no doubt intended, this nifty move by the Rapporteur meant that no
other tabled amendments were taken – including the media industry’s
favoured wording for article 6.5 (on fair representation and disclosure
requirements): "This article shall not apply to journalists when
they act in their professional capacity".) Mr. Goebbels insisted that the media would not be unduly affected by this article and that they had protection under the definition of market manipulation in Article 1. The Rapporteur’s amendment reads that Securities market regulators shall take into account the rules, including self-regulation, governing the profession of journalists". This is intended to protect existing regulatory systems in the member states but the reality is that Member State governments will have scope to adopt a more literal interpretation of the directive if they so wish. The provisional date of 7 November has been set for the Plenary vote although this is likely to be brought forward to w/c 21 October if the Rapporteur gets his way. The industry will continue to put the case for more precise wording to avoid unintended regulation for financial journalism. It is thought unlikely that this directive will go to conciliation which means that it could be formally adopted in January or February 2003. There will be an 18-month implementation period. Click here for the CSER report.
Rome IIEPC joins opposition to unpopular RegulationThe EPC has registered its concerns with the European Commission in relation to the current consultation on Rome II (law applicable to non-contractual obligations). In line with the majority of responses from both industry and some Member States, the EPC believes that this is an unnecessary and disproportionate regulation which would make life very difficult for publishers without delivering any of the consumer protection it seeks to provide. Rome II is about which national law should be applied in disputes. For instance, in terms of defamation cases the current Commission approach would permit a French citizen to claim he had been defamed by, or had his privacy invaded by an article published in a UK-based newspaper (if online so much the better) to sue where he feels the damage has been caused - so probably in France, and then according to French law which in the case of privacy laws are much more strict. Actually under current law publishers can already be sued abroad but they can limit their exposure to damages due to small numbers of people reading the hard copies of their papers outside the country of origin and main publication. The Internet makes the potential for "damage" a lot wider although under the proposed Rome II regulation online publishing would be governed by the laws of first publication. The EPC has highlighted the damaging and contradictory situation which may result from the application of different rules online and off-line for defamation and violations of privacy. It also criticises the Commission for failing to present any studies demonstrating a need for such a regulation. The proposal, according to the EPC, neither eliminates nor reduces the problems raised by a potential application of various differing national laws on the same economic activity. The EPC is calling on the Commission to produce concrete research into existing cases and the potential impact before proceeding. The Commission will now publish a Communication based on the results of the consultation. Click here for the Jurisdiction fact sheet.
CopyrightCommission report calls Public Lending Right into questionThe Commission has just published its report on the effectiveness- or in this case ineffectiveness – of the directive on the Rental and Lending Right. Proceedings have been brought against Belgium for the non-implementation of the directive and other Member States have dragged their feet implementing a directive which, according to the report, is in some cases being applied improperly. The directive requires that the authors of books, films and any other copyright works and (at Member States’ discretion) other rightsholders, either have the right to authorise or refuse lending of their works by institutions such as public libraries, or that they be remunerated for such public lending. However, Member States have considerable discretion in determining the level of remuneration to be paid. They can also exempt certain types of lending establishments. The Public Lending Right (PLR) is being applied differently from one Member State to the next: In Denmark, Sweden and Finland, PLP seems to be only granted for national or resident authors (Sweden) or for items published in the national language (Denmark, Finland). Spain, Ireland, Italy, the Netherlands, Portugal, Finland and the UK have exempted so many lending establishments that the PLR, says the Commission, is deprived of adequate effect.
Data protectionCommission reluctant to changeThe Commission expressed the view at a hearing on 30 September that it was reluctant to make any major changes to the directive. It is, however, likely to re-consider aspects of notification and transfers of data to third parties which would be of interest to publishers. The Commission is also considering fixing applicable law as country of origin which would be welcomed by the EPC. Click here for the proposals for amendment.
AdvertisingPharmaceutical companies fear restrictions to advertising and media communicationsPharmaceutical companies are concerned that some amendments passed by the Environment Committee to the pharmaceutical directive will impose over-zealous restrictions on advertising and press communications related to their sector. The European Parliament’s Environment Committee opposes Commission plans to allow the pharmaceutical industry to provide information on medicines to consumers, on the basis, they say, that the industry is incapable of providing impartial information on its medicines. Currently the pharmaceutical industry has the support of the EPP European Parliamentary Party which is tabling compromise amendments to avoid unwarranted restrictions on the advertising of pharmaceutical products. The reports will be on the agenda of the plenary session in Strasbourg on 21 October. The Council is expected to discuss the issue on 2 December.
For more information on any of the following issues, contact Heidi Lambert Communications Tel: +44 1245 476 265. Internet regulation ContactsAngela Mills, Director of EPC: Tel: +32 2 231 1299 (Brussels) or +44 1865 310 732 (UK) angela.mills@epceurope.org. Heidi Lambert Communications: Tel: +44 1245 476 265 heidilambert@hlcltd.demon.co.uk.
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