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EPC news - May 2005

The monthly update on EU media issues

Media concentration

Television without frontiers

Rome II

Advertising

Audiovisual

Media concentration

Media pluralism campaign goes up a gear: EPC braces itself for another fight

The debate on media concentration in Europe began in the 1980s when liberalisation triggered fierce competition in the media market. A wide-ranging Commission consultation concluded in 1994 that Member States should be primarily responsible for maintaining media pluralism and diversity. A further attempt by then Internal Market Commissioner Mario Monti to introduce a new law was twice rejected by the College of Commissioners in 1997.

The European Publishers Council (EPC) is now set to campaign against renewed efforts by MEPs, and national governments in some instances, to establish new EU rules on media concentration.

The EPC argues that new EU laws on media pluralism would fall far beyond the legal competence of the EU.

Commission representative Mr Colosanti (DG Info/Media) said at a recent debate on the issue that EU merger regulation already provides protection and that Member States can block merger deals to protect pluralism.

The EPC is concerned, however, that backdoor legislation on media pluralism may be introduced via the revision of the Television Without Frontiers (TVWF) directive, the debate on which is coming to a close in the next few weeks. The Commission seems likely to opt for a new style "Content Directive" that would aim to be technologically neutral, providing a level playing field for all media across the board. Although the Commission and some Member States are primarily concerned about how to preserve and promote indigenous production of film and TV programmes when consumers start sourcing their films from online broadband services and Pay-TV, other issues will be handled in a Content Directive that give rise to concerns to publishers, including any rules which might impose regulation of online editorial content or advertising.

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Television without frontiers

Revision to include new media

Discussions on the revision of the TV Without Frontiers Directive are due to conclude in the next few weeks. Commissioner Viviane Reding has stressed the need for a revision to the directive to embrace new technologies.

Without this revision, EU policy will no longer cover most of the media, causing a distortion in competition and making traditional television less relevant, she says.

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Rome II

Rome II legislation goes to European Parliament for vote

Discussions on this controversial legislation on non-contractual obligations, will come to a head on 24 May when it goes before the European Parliament for a vote. The EPC, together with other industry associations, has succeeded in persuading all three political groups to table amendments to ROME II which would establish the applicable law in the event of any disputes as the law of the country for which the publication or broadcasting service is mainly intended, or in cases where this is not clear, the law of the country in which the editorial decision is taken.

This is 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.

Amendments that dismiss the country of origin principle will also be tabled – notably by the Civil Liberties committee. The EPC will continue to argue that the media needs the legal certainty that the country of origin principle currently provides.

The revision of this directive is due to be completed by June at which point it will go to member states for agreement.

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Advertising

Kyprianou calls for new code of conduct

Mr Kyprianou is considering calling for an EU code of conduct on the advertising of alcoholic drinks and is also considering how the drinks industry might actively promote sensible drinking.

Industry proactively devises new codes to keep up with new advertising and marketing media

In the meantime, industry continues to develop its own self-regulatory codes in line with the latest technological developments. The International Chamber of Commerce (ICC) has published new guidelines on the use of new marketing tools such as telephone, SMS/MMS, digital radio and television as new marketing in order to:

• increase public confidence that marketing and advertising material provided over the new interactive systems is legal, decent and honest;

• safeguard and optimum freedom of expression for advertisers and marketers;

• provide practical and flexible solutions;

• minimise the need for governmental and/or inter-governmental legislation;

• meet reasonable consumer privacy expectations.

Details include:

• responsible advertising to children

• respect for public groups

• data collection

• unsolicited commercial communications

• respect for the potential sensitivities of a global audience

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Audiovisual

Public Service Broadcasters brought into line over misuse of licence fee

Following a Commission investigation, France, Italy and Spain have agreed to ensure they do not cross-subsidise commercial business with licence fee money. Germany, Ireland, Netherlands, Flanders and Austria are still under investigation for violations to EU laws that forbid use of licence fees to subsidise profit-making activities.

Commissioner outlines 2010 initiative

Commissioner Reding is calling for the switchover from analogue to digital television by 2010. Apparently, EU Member States are moving at vastly different speeds in drafting rules or pushing broadcasters to use digital TV but Mrs Reding wants analogue frequencies freed up as soon as possible for other uses.

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