Media Concentration in Western Europe

Why Regulate Media Concentration?
Normative
Basic right
Balance and pluralism
Public sphere
Market issues
Legal certainty
Fair and open competition
Monopolies
Open access

Relevant International Instruments
Charter of Fundamental Human Rights Art. 11. Art. 10 of the European Convention of Human Rights. Art 11 (2) Constitutional Treaty. EC Mergers regulation
Recommendations:
COE (99)1 media pluralism
European Parliament (Resolution 2004)

COE Recommendation (99)1
Stresses the importance of plural and autonomous media outlets
Political and cultural pluralism
Need to have transparency
A framework for maintaining media diversity

Internal and External Pluralism
Internal pluralism
Ensuring diversity of programming
Public service
External pluralism
Ensuring diversity of operators
Guaranteeing open access to markets
Ensuring that citizen has access to broad range of sources

How Countries Regulate for External Pluralism
Range of different national approaches
Different media treated differently
Two main instruments
Competition policy (key today)
Thresholds (ceilings)
Both are reliant on a number of issues
Consistency
Clarity
Independence

Model 1
Italy
Financial (30%)
National licences (20%)
These above provisions being removed by the new Bill
France
Shareholders (capped at 49% of channel with above 2.5% share)
National licences (1 max)
Thresholds for cross-media

Model 2
The Netherlands
No thresholds
Competition policy
Regulators would like to introduce thresholds
UK
Thresholds for cross-media (20% of newspaper market and ITV)
Competition policy
Public interest test for media has replaced all thresholds

Public Interest Test
Triggered where the public interest might be threatened- includes all mass media at the discretion of the DTI and Ofcom
Based on
Sufficient number of operators
Services to end user
Range of standards set out in the 2003 Act

Overview of Approaches (Sample)

Regional Newspaper Market Share of Top Five Groups 2002 (Includes Language Markets)

National Daily Newspaper Market Share 2002 (Includes Regional Titles That Have National Market)

Television Audience Share of Public and Leading Commercial Television Companies 2002/2003

What Does This All Mean?
These are all highly concentrated markets
Very prominent position for the public sector (leaders in nearly all markets)
Growing consolidation of companies in press and TV
External pluralism narrowing- therefore internal pluralism becoming even more important

Internal Pluralism
Public broadcasters are becoming more important in terms of maintaining pluralism
Should provide a wide range of programming as part of their remits
Independent from commercial and state interests

Common Features of Remits
Contribute to a democratic and plural society
Promote local culture
Provide high quality programming
Meet high journalistic standards
Non profit
Universal service

Key issues
Need to provide pluralism for democratic and competition reasons- this is a non negotiable
Pluralism best served by the member states with support of international instruments
Crucial to maintain a balance between the rights of citizens and stability of the sector