Select Committee on European Union Third Report




FOREWORD—What this Report is about

When the Commission published its draft Audiovisual Media Services (AMS) Directive in December 2005, it was met with alarm in many quarters, particularly in the United Kingdom.

The Directive sought to amend the existing 'Television Without Frontiers' (TVWF) Directive, by extending the scope of the Directive to those new services perceived to be competing for audiences and revenue with traditional television. This threatened to introduce burdensome and potentially inappropriate regulation to what was a thriving new media sector in the United Kingdom, with very different business models. There were fears that emerging new media companies may either collapse or relocate outside the European Union.

Since the original draft, a number of changes have been made to the text to attempt to tighten the definition of the services covered to "television-like" services. Whilst this is an improvement, we are still concerned that there is not sufficient legal certainty over precisely what these services are, particularly in a rapidly changing market.

As in other recent single market legislation, the previously accepted basis of a Country of Origin approach to operating across 25 (now 27) Member States, which was contained in the original TVWF Directive, and the original draft AMS Directive, has come under attack. We maintain our view that the Country of Origin approach is the best way to go forward and must be defended.

Whilst we understand the concerns of traditional, "free to air" broadcasters at additional pressures to revenues from new competitors, we firmly reject the idea that regulators should act to preserve the market dominance of established players from new entrants. We are however unconvinced of the need for any quantitative restrictions on advertising in a market which is now clearly open to competition.



 
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