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EPC news - April 2005

The monthly update on EU media issues

Media affairs co-ordination within the Commission welcomed by EPC members

Media concentration

Country of origin creeps back onto one table at least

News in brief

Media affairs co-ordination within the Commission welcomed by EPC members

A major new initiative to co-ordinate EU policy making that directly or indirectly impacts on the media industry sector is being launched within the European Commission. Commissioner Viviane Reding is working on the formation of its new Task Force on the Co-ordination of Media Affairs, designed to co-ordinate policy making across the cabinets to screen the impact of all proposals on the media industry; to provide a dedicated point of contact for representatives of the sector, and to develop the capacity to analyse the economic impact on media industries of any proposals.

To ensure the involvement of her fellow Commissioners, Mrs Reding is requesting that every Cabinet elect a media industry contact.

The Task Force will have the following roles:

• to scrutinise the Commission’s work plan in order to identify policy initiatives at service level with the potential to affect the media;
• to act as a sounding board for all services during the early stages of preparing any policy initiative to avoid the media being unintentionally affected by a measure without the service in question being aware;
• to develop an economic research role in order to upgrade the Commission’s understanding of publishing industries in line with its understanding of the audiovisual sector;
• to provide an entry point for media companies and organisations with media enquiries or points that they wish to discuss. This part of the initiative is intended to benefit other, smaller players lacking the resources of the big players. It is intended to help transparency and extend the diversity of our interaction with industry and civil society on media matters.

This initiative coincides with an amendment to the Motion for a Resolution on the Lisbon Strategy adopted by the European Parliament in March that reads: "Observes that creative industries are about to become a most promising sector in our economy and that huge employment potentials exist in the area of new media and digital culture".

Contact persons:

Mr Christophe Forax (member of Mrs Reding’s cabinet)
Mr Adam Watson Brown (Task Force "co-ordination of media affairs" – DG INFSO and Media)
Mr Giovanni Rodondi (Task Force "co-ordination of media affairs" – DG INFSO and Media).

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Media concentration

MEPs give low priority to Media Concentration debate

Not a single MEP turned up to the first debate of the newly-formed European Parliament group looking at press freedom issues. Whether this is because they all agree with the EPC that media pluralism is better left to market forces and existing competition regulation, is probably up for more debate than the one that took place. However, another meeting has been set for 14 April to which the EPC has been invited.

The EPC has always argued that Competition regulation already exists to curb media concentration. A current example is the European Commission’s enquiry into the German public broadcasters’ use of licence fee money to fund its Internet and other Services. German public broadcasters ARD and ZDF are accused of using illegal subsidies. The Irish and Dutch public service broadcasters are also under scrutiny.

Media concentration is also under the Council of Europe spotlight in its newly-submitted "Draft Action Plan on Cultural Diversity and Media Pluralism and on Human Rights and Regulation of the Media and New Communications Services in the Information Society." Plans to monitor the development of media concentrations in Europe also include the plan to study the legal, financial, technical and other conditions related to public service broadcasters.

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Country of origin creeps back onto one table at least

Commission President José Manuel Barroso has stepped in to cool the political row over the Services Directive, a directive designed to facilitate cross-border trade, facilitate the establishment of businesses cross-border; facilitate the provision of services, temporarily or occasionally; facilitate the movement of temporary workers around the EU; and simplify administrative and bureaucratic requirements that currently pose an obstacle to the proper functioning of the single market.

Up until now it has been largely disagreement over the "country of origin" principle that had held things up. (making the law of the Member State where the trader is established applicable). The revision of this directive is due to be completed by June at which point it will go to member states for agreement. The EPC has lobbied hard for "country of origin" to be safeguarded.

Meanwhile, the EP has adopted the directive on Unfair Commercial Practices, due to be implemented EU-wide by 2007. This seeks to rule against "aggressive or misleading business-to-consumer marketing" including "pressure selling", misleading marketing and false claims about free products. The directive also prohibits adverts that "encourage children to use pester power to make adults buy a product and adverts that directly tell children they must buy a product. MEPs have introduced an amendment that includes the re-introduction of the "country of origin" principle which the Council is unlikely to agree. The text regulating sales promotions is also currently blocked in Council over this apparently controversial principle.

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News in brief

• Women have overtaken men in the take-up of Internet.

• 13/25 member states have agreed to establish a common procedure to handle cross-border complaints relating to spam.

• Commission study on the impact of co- and self-regulation expected by end 2005.

• Commissioner Reding admits that significant increase in Media Programme budget beyond 2006 unlikely.

• In the UK, BBC retains licence fee until 2016 in return for greater commitment to public service broadcasting and for driving the switchover to digital TV services.

• Debate in EP and Council continues on Nutrition and Health Claims proposal: Luxembourg Presidency will aim for June’05 agreement in Council.

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