Monti to rethink media ownership in autumn

Date: 17/07/1997

By Chris Johnstone

INTERNAL Market Commissioner Mario Monti is expected to revive plans to legislate on media ownership in the autumn, even though the dossier appears to have been pushed down his list of priorities.

Sidetracked by his single market action plan presented at last month's Amsterdam summit, Monti has made little progress on rethinking his media strategy following its withdrawal from the agenda of a full Commission meeting in March.

Then, he proposed a combination of audience limits on radio and television broadcasters together with an across-the-board ceiling on media ownership which included newspapers.

The main argument for this approach was that it would tidy up the existing mix of national rules on media ownership and pave the way for a European media industry rivalling that of the US, where companies are allowed to invest across borders, while at the same time protecting diversity and democracy.

At the time, Monti's aides said he would be back after holding talks with fellow Commissioners concerned about the consequences of meddling in such a sensitive issue as limits on the development of radio, television, and newspaper empires.

However, sources close to some of those Commissioners say nothing has been heard from him on the issue in the four months since then.

The media sector itself appears to be the only witness to signs of life from the officials most closely involved in work on the dossier, with representatives of the industry continuing to lobby national and local governments heavily on the basis of the March text.

Industry sources say they have been left with the firm impression that further dilution and flexibility are the only way for Monti to get his plans past Commissioners and sceptical member state governments.

Ironically, this prospect does not fill them with as much joy as might be expected. The industry is worried about a backlash from the European Parliament - which was the original inspiration behind moves towards a media ownership or pluralism directive - if Monti's plans are watered down too much.

Some media watchers suspect the Italian Commissioner could be adopting salami tactics, seeking to get any measure on the statute books, however weak, so that the Commission could come back to the issue after a suitable review period with fresh proposals to reinforce the rules.

Monti began backing down even before the Commission meeting in March where media ownership was last due to be discussed. In the event, the subject was crowded off the agenda and Monti was not tempted to reintroduce it quickly after soundings showed his colleagues had deep reservations.

The March proposal excluded newspapers from the 30&percent; national audience limits applied to television and radio, and offered exemptions for local newspapers and radio stations with a dominant position. Governments were also offered the chance to apply for a 10-year delay in taking action against broadcasters exceeding the 30&percent; threshold.