followthemedia.com - a knowledge base for media professionals
Media Rules & Rulers

Everybody And Everything Competes, Rules To Follow

Repurposing rules for the digital age is, at best, a tedious, time consuming job. But necessity is the mother of regulation. The media sector is particularly susceptible to digital anxieties in the midst of competition unforeseen only a few years ago, or moments, as the case seems to be. Those designing new media rules are sensitive to this. Competitive advantage is always suspect, though not well understood.

on your markGripping media and technology-related headlines recently has been the European Commission’s application of State Aid rules. Fundamentally, the European Union (EU) executive looks to keep level the playing field in just about every economic area, requiring Member States to toe the line. The August 30th decision requiring the Irish Republic to recover €13 billion from technology company Apple charged that low corporate tax-rates constitute illegal State Aid. Headlines worldwide were as big as the eleven-digit amount.

Most other State Aid decisions from DG Competition attract far less attention; bank guarantee schemes, wind turbine subsidies, airline supports, diamond trade taxation. “State aid is defined as an advantage in any form whatsoever conferred on a selective basis to undertakings by national public authorities,” says the EC website. DG Competition also looks into mergers, cartels and antitrust. Margrethe Vestager is the EC Competition commissioner, its most public face. In charge of day-to-day details is director general Johannes Laitenberger, one of the EC’s top lawyers.

Recent State Aid cases involving the audiovisual (media) sector are relatively few and far between. Only a handful of antitrust investigations - anticompetitive practices and abuse of dominance - have been pursued in the last three months, allegations that search engine provider Google breached rules being notable. But it’s mergers and acquisitions that keep DG Competition lawyers most busy. Scores of cross-border business deals in every sector go under the microscope each month, big ones and not so big, in search of those that would “significantly weaken effective competition in the market, in particular by creating or strengthening a dominant player.”

DG Competition recently ruled (September 1) that a German tax on audiovisual providers used to support German film production and distribution can be extended to foreign video on demand (VoD) providers and is not prohibited State Aid to domestic providers. Similar tax support for domestic film production and distribution exists elsewhere and the EC thoughtfully provided guidelines in 2013. In the case of German film subsidies, DG Competition cited proposed amendments to the Audiovisual Media Services Directive (AVMS) that “clarify” the country of origin principle and the “right to require providers of on-demand audiovisual media services, targeting audiences in their territories, but established in other Member States, to make such financial contributions.”

Several broadcasters, for example, claim the UK as country of origin while targeting a variety of markets to take advantage of less restrictive UK broadcasting regulation. Repurposing country of origin for targeted market, for purposes of regulatory domain, could have a direct effect. That would only be compounded by a UK exit from the EU.

Other recent media-related State Aid decisions include allowing the French state to directly finance public international media organization France Medias Monde, somewhat controversial in France when proposed leading the government to ask for EC approval. Similarly, Spanish authorities notified the EC of intentions to provide financial aid to privately owned newspapers and periodicals published in the Basque and Valencian languages. The EC did not object. DG Competition’s decision on State Aid to Spanish news agency EFE, presumed an approval, has not been published.

For several years public broadcasters in EU Member States were subjected to claims of illegal State Aid, usually with regard to new media services. The case weight led eventually to the Broadcasting Communication (2009), which clarified the EC’s support for public broadcasting services in the new media realm. More recently DG Competition has ruled on subsidies for digital television transition, finding a Spanish plan to compensate broadcasters for simulcasting, which was never used, “provided a selective advantage to terrestrial broadcasters and platform operators over other available technologies.”


See also in ftm Knowledge

State Aid - Media Rules – new

National authorities have at their disposal a variety of economic measures to stimulate, develop and improve competitive market sectors. Sometimes they miss the big picture or have special circumstances. Within the European Union an executive branch of the European Commission stands ready to clarify the rules of each and every game. State Aid rules are developing as the playing field gets bigger. 35 pages, PDF (September 2016)

Order here

ftm resources



related ftm articles:

Rules Are Meant To Be Changed All The Time
"When an American sees a beautiful sports car on the street he says to himself, I'm going to work hard and get one of those," to paraphrase Australian billionaire media owner, the late Kerry Packer, quoted some thirty years ago. "When a European sees that car he thinks, how am I going to get that guy out of that car." New evidence of this arrives daily.

Beyond Haircut To Extreme Makeover
This century has illustrated boldly the world of media moguls, their ambitions and business practices. Tough, tireless and maybe a little crazy they go after what they want, relishing in the fight. Some of this is admirable. Some of it is a crime, particularly when mixed with the ruthless pursuit of power.

New Rules Welcomed By All, With Fingers Crossed Behind Them
The latest round of the pitched battle between private and public sector media rang to a close as the European Commission issued revised rules on State funding. It’s all in the spirit of reducing uncertainty. But uncertainty remains.


advertisement

ftm Knowledge

Media in Spain - Diverse and Challenged – new

Media in Spain is steeped in tradition. yet challenged by diversity. Publishers hold great influence, broadcasters competing. New media has been slow to rise and business models for all are under stress. Rich in language and culture, Spain's media is reaching into the future and finding more than expected. 123 pages, PDF. January 2018

Order here

The Campaign Is On - Elections and Media

Elections campaigns are big media events. Candidates and issues are presented, analyzed and criticized in broadcast and print. Media is now more of a participant in elections than ever. This ftm Knowledge file reports on news coverage, advertising, endorsements and their effect on democracy at work. 84 pages. PDF (September 2017)

Order here

Fake News, Hate Speech and Propaganda

The institutional threat of fake news, hate speech and propaganda is testing the mettle of those who toil in news media. Those three related evils are not new, by any means, but taken together have put the truth and those reporting it on the back foot. Words matter. This ftm Knowledge file explores that light. 48 pages, PDF (March 2017)

Order here

More ftm Knowledge files here

Become an ftm Individual or Corporate Member to order Knowledge Files at no charge. JOIN HERE!

copyright ©2004-2018 ftm partners, unless otherwise noted Contact UsSponsor ftm