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Рy11 July 2018
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The provisions of media law on economic concentrations and dominant position in this area could prevail over the provisions of the Law on Competition, according to a draft endorsed on Wednesday, 11 July, by the Parliamentary Committee on Culture, Education, Research, Youth, Sport and Media. The opposition however believes that these rules will not solve the current problems on the Moldovan broadcasting market.
The draft envisages the introduction of a new article in the Law on Competition, which stipulates that if special media laws establish thresholds for the notification of economic concentrations, or quotas that presume the existence of a dominant position other than those established in the Law on Competition, the provisions of the media law shall be applied.
For instance, the Law on Competition stipulates that an undertaking or a group of undertakings is presumed, until proven otherwise, to be holding a dominant position on a relevant market ‘when the aggregate share or the shares on the relevant market, registered for the analyzed period, exceed 50%.’ In this regard, the Draft Code of Audiovisual Media Services establishes that a person holds a dominant position in public opinion formation if ‘the audience weighted share of the audiovisual media services assigned to him/her exceeds 35% of the significant market’. If the Parliament passes both drafts, then the quotas set forth in the Code will be taken into account, rather than those stated the Law on Competition.
Media expert Eugeniu Ribca argues that there is an international practice to have other quotas in the media to determine the existence of a dominant position on the market. ‘The current international standards provide that in mass media the dominant position can be set at a much lower figure than in other areas. This justifies the possibility of establishing a much lower quota. The new article to be introduced in the Law on Competition refers to this possibility of establishing much lower thresholds’, explained the expert for Media-azi.md.
‘This draft aims at offering the possibility to establish special thresholds for assessing the economic concentration and a more efficient cooperation between the Broadcasting Coordination Council and the Competition Council so that the latter has more relevant information in order to detect and fight possible economic concentration in the media’, says the Vice-President of the Competition Council, Emil Gutu.
Opposition MPs, however, doubt that the proposed amendments will combat effectively the economic concentrations on the broadcasting market. ‘It's hard to find it out in cases when a holding has 3-4 official owners, but clearly there is only one owner who has divided the shares among other people. Everyone is aware of this, but you cannot legally prove it. The idea is correct, but I do not know how it will be implemented in practice’, said Liberal MP Lilian Carp.
Different opinions also exist with regard to the Competition Council's proposal for BCC to produce annually, by 1 March, a report on the actual beneficiaries and the level of concentration on the broadcasting market. However, chairman of the specialised Parliamentary Committee, Vladimir Hotineanu, argues that this provision could be amended because BCC cannot be obliged to present such reports.
The draft envisages the introduction of a new article in the Law on Competition, which stipulates that if special media laws establish thresholds for the notification of economic concentrations, or quotas that presume the existence of a dominant position other than those established in the Law on Competition, the provisions of the media law shall be applied.
For instance, the Law on Competition stipulates that an undertaking or a group of undertakings is presumed, until proven otherwise, to be holding a dominant position on a relevant market ‘when the aggregate share or the shares on the relevant market, registered for the analyzed period, exceed 50%.’ In this regard, the Draft Code of Audiovisual Media Services establishes that a person holds a dominant position in public opinion formation if ‘the audience weighted share of the audiovisual media services assigned to him/her exceeds 35% of the significant market’. If the Parliament passes both drafts, then the quotas set forth in the Code will be taken into account, rather than those stated the Law on Competition.
Media expert Eugeniu Ribca argues that there is an international practice to have other quotas in the media to determine the existence of a dominant position on the market. ‘The current international standards provide that in mass media the dominant position can be set at a much lower figure than in other areas. This justifies the possibility of establishing a much lower quota. The new article to be introduced in the Law on Competition refers to this possibility of establishing much lower thresholds’, explained the expert for Media-azi.md.
‘This draft aims at offering the possibility to establish special thresholds for assessing the economic concentration and a more efficient cooperation between the Broadcasting Coordination Council and the Competition Council so that the latter has more relevant information in order to detect and fight possible economic concentration in the media’, says the Vice-President of the Competition Council, Emil Gutu.
Opposition MPs, however, doubt that the proposed amendments will combat effectively the economic concentrations on the broadcasting market. ‘It's hard to find it out in cases when a holding has 3-4 official owners, but clearly there is only one owner who has divided the shares among other people. Everyone is aware of this, but you cannot legally prove it. The idea is correct, but I do not know how it will be implemented in practice’, said Liberal MP Lilian Carp.
Different opinions also exist with regard to the Competition Council's proposal for BCC to produce annually, by 1 March, a report on the actual beneficiaries and the level of concentration on the broadcasting market. However, chairman of the specialised Parliamentary Committee, Vladimir Hotineanu, argues that this provision could be amended because BCC cannot be obliged to present such reports.
