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media expert
Media organizations have insisted, for a number of years now, on the adoption of some modifications to the Audiovisual Code that would disclose the real owners of media companies. These amendments were approved. In consequence the strong concentration of the press in the hands of one person that also controls the advertising market was identified.
A number of questions for the BCC
Let us come back to the amendments made to the Audiovisual Code and their immediate effects. General Media Group Corp. and Radio Media Group Inc., with Vladimir Plahotniuc as their single owner, hold four television stations and three radio stations that the controversial businessman has hidden along the years, behind a number of offshore companies. We’re talking here about TV channels: Publika TV, Prime TV, Canal 2 and Canal 3, but also radio stations Publika FM, Muz FM and Maestro FM. Even if the law stipulates, in its Art. 66, paragraph 3 that ”a legal entity or individual can hold up to five broadcast licenses in one and the same territorial-administrative unit or area without the possibility to enjoy exclusiveness”, the BCC does not see this fact as an issue and refers to paragraph 4, which stipulates that „a legal entity or individual from inside the country or from abroad the country, may be a majority investor or shareholder, directly or indirectly to at least 2 radio broadcasters of various types”. The matter only refers here to the definition of radio broadcaster offered by the Audiovisual code. So how many licenses can one person hold—2 according to the law or 10, as the BCC interprets?
Let’s clarify one thing. The modification of Article 66 of the Audiovisual Code was aiming at avoiding a monopoly of the press and the disclosure of the media institutions’ final beneficiaries. And I want to underline, repeatedly, of media institutions and not radio broadcasters.
Under point I – Privately owned radio broadcasters can be created by individuals and legal entities, (Art.66 paragraph (2) amended through PL 28 of 05.03.15, Official Gazette 105-109/01.05.15, Art.179; entered into force on 01.11.15) the law stipulates that a radio broadcaster may be created by an individual or legal entity, separately or through association, organizing themselves in turn as a third party legal entity. Simply put, this article of the law specifies who the founders of a private radio broadcaster may be. The law limits nobody at this point. Under point 3 – An individual or legal entity can hold at most five broadcast licenses in the same territorial administrative unit or area, without the possibility of enjoying exclusiveness. Through this article, the Audiovisual Code aims at the highest allowable limits to avoid the concentration of frequencies in the hands of one single individual or legal entity. We must specify that the law makes no difference between radio and TV, so the number of licenses, regardless of activity level cannot exceed 5. Because an individual cannot hold a broadcast license, the Code apparently produces an error, however, the supposed gaffe makes an exact reference to the danger of broadcast frequencies concentration and directly indicates that the final beneficiary may be one individual forming a number of legal entities. How many legal entities may an individual establish? An infinite number. And then… each of them can hold 5 broadcast licenses? The spirit of the law, as well as the law itself says NO. The final beneficiary may only hold 5 broadcast licenses. The attempt by the BCC to argument this through the fact that the holder of the broadcast license is exclusively a legal entity represents legal illiteracy and a voluntary interpretation of the Audiovisual Code. The legal entity has an owner and the owner admitted to owning 100 percent of its assets. Paragraph (4) of the Audiovisual Code – An individual or legal entity, inside the country or abroad, may be an investor or majority shareholder, directly or indirectly, in at least 2 radio broadcaster of various types – obliges the BCC to regard this article from a totally different perspective, or, if you wish, from the spirit of the law perspective. What would this mean? It is simple: an individual may create one or two legal entities that will apply for broadcast licenses, and the individual that created them through a direct or INDIRECT participation, through legal entities created can also hold insignificant percentage shares in the creation of 3 other radio broadcasters. 5 in total. But what we must remember from this point 4 of Art. 66 is that NOBODY, AS SOLE OWNER, CAN HOLD MORE THAN 2 LICENSES.
The entire media market of the Republic of Moldova must be revisited, but this is another problem of the press moguls. Unfortunately, the audiovisual will continue to be a political affair and the citizen will have to look for other sources of information, education and entertainment.
The article was published within the Advocacy Campaigns Aimed at Improving Transparency of Media Ownership, Access to Information and promotion of EU values and integration project, implemented by the IJC, which is, in its turn, part of the Moldova Partnerships for Sustainable Civil Society project, implemented by FHI 360.This article is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The content are the responsibility of author and do not necessarily reflect the views of USAID or the United States Government.
