Select Committee on European Union Written Evidence


Memorandum by the Voice of the Listener & Viewer

PROPOSED EXTENDED SCOPE OF THE DIRECTIVE

  1.  Broadly speaking, VLV welcomes the Commission's proposal to extend the scope of the Television without Frontiers Directive to all Audiovisual Media Services. In our view, the Draft Directive has sought to establish a middle way between the relatively tight controls traditionally imposed on television broadcasting services, and the tenets of free speech, which are underpinned by the European Convention on Human Rights. The following points are worthy of note.

    —  The Commission's definition of an audiovisual media service requires any such service to fulfil the following conditions. These are that the service:

      (a)  should be any service as defined by articles 49 and 50 of the (European) Treaty;

      (b)  It's principal purpose is the provision of moving images, with or without sound;

      (c)  which are designed to inform, entertain or educate the general public;

      (d)  by means of an electronic communications network.

    —  Moreover, recitals 13 to 15 of the Draft Directive (which, for some unknown reason the UK Government did not circulate as part of its consultation process) specifically exclude the following:

      (a)  non-economic activities, such as purely private websites;

      (b)  any form of private correspondence, such as e-mails sent to a limited number of recipients;

      (c)  services where the inclusion of audiovisual content is merely incidental to the service and not its principal purpose, such as websites that contain audiovisual elements only in an ancillary manner;

      (d)  animated graphical elements, small advertising spots, or information related to a product or non-audiovisual service; and

      (e)  electronic versions of newspapers and magazines.

  2.  VLV is sure that these uncertainties could be avoided by some redrafting. For the avoidance of doubt therefore, and in order to protect non-commercial free speech on the Internet, VLV proposes that the content of recitals 13 to 15 should be added to the definition of an audiovisual media service in Article 1(a) of the Draft Directive.

  3.  Moreover, given the Decision of the European Court of Justice in the Mediakbel BV judgement, and taking account of the minimal obligations which will be placed upon providers of non-linear audiovisual media services, VLV considers that it is proper to include within the purview of the new directive the categories of audiovisual media services which the UK Government has identified in paragraph 2.15 of its Partial Regulatory Impact Assessment.

  4.  VLV also welcomes the new definition of television broadcasting in the Draft Directive, which again in line with the decision of the European Court of Justice in the Mediakabel BV judgement, covers all types of transmission platform for a television service.

  5.  VLV is especially pleased to observe that the proposed distinction between a linear and a non-linear service makes sense from a consumer's perspective. As defined in article 1(e) of the Draft Directive (which follows the Mediakabel BV judgement of the European Court of Justice), a non-linear service means an audiovisual media service where the user decides upon the moment in time when a specific programme is transmitted on the basis of content provided by the media service provider.

KEY OBLIGATIONS TO BE IMPOSED ON PROVIDERS OF NON-LINEAR AUDIOVISUAL MEDIA SERVICES

  6.  Broadly speaking, VLV considers that the obligations proposed for providers of non-linear audiovisual services are "fit for purpose" for the development of a European Information Society. They fall into four main categories which are designed either to:

    (a)  Prevent the deliberate deception of the consumer (article 3g(a) which prohibits surreptitious audiovisual commercial communication, article 3g(b) which prohibits subliminal techniques, and article 3h(4) which prohibits the use of sponsorship or product placement in news and current affairs programmes, and of product placement in children's or documentary programmes);

    (b)  Require the consumer to be informed about the provenance of a particular service or category of programme, (article 3c on the origin of the audiovisual media service, article 3g(a) on the presence of an audiovisual commercial communication, and article 3h(c) on the presence of a sponsorship agreement); or

    (c)  Prohibit the audiovisual commercial promotion of goods or services deemed to be injurious to public health (articles 3g(d), 3g(3), 3h(2), 3h(3) on the promotion of tobacco products, medicines on prescription and alcoholic beverages, and article 3g(c) on the encouragement of socially or environmentally destructive behaviour)

    (d)  Prohibit the abuse of free speech in line with the restrictions permitted by article 10 of the European Convention on Human Rights.(article 3d on the protection of minors, article 3e on incitement to hatred)

  Given the histrionic claims of some sections of the audiovisual media communications industry about the draconian nature of these proposed restrictions it is worth examining the European Commission's proposed restrictions in more detail.

7.   Preventing the deliberate deception of the consumer

  The proposed definition of surreptitious advertising in article 1(h) of the Draft AVMS Directive, which is the same as that used in article 1(d) the TV Without Frontiers Directive, is extremely tightly drawn. It requires that any such representation is both "intended by the broadcaster to serve advertising" and might "mislead the public as to its nature". This definition has allowed independent producers of television programmes in the European Union to finance their productions by the use of surreptitious advertising, which has, in turn, led EU Member States such as Austria and Spain to allow product placement in these categories of television programmes. This means that although product placement is currently forbidden on UK television services, the UK authorities, such as Ofcom, have been unable to prevent product placement in programmes originating from other EU Member States. Moreover, although article 3g (a) of the Draft Directive prohibits surreptitious audiovisual commercial communication, the definition of surreptitious advertising in draft article 1(h) still requires that the broadcaster (and not the provider of an audiovisual media service) the representation of to serve advertising.

  VLV would therefore like to see the definition of surreptitious advertising (a) to be widened to include all providers of an audiovisual media service; and (b) to make the sole criterion was that of misleading the public as to the nature of the representation.

8.   Requiring the consumer to be informed about the provenance of a particular service or category of programme

  The draft directive, like the TV without Frontiers Directive, is based on the country of origin principle. This means that there are now 25 EU Member States which can authorise a television broadcast or an audiovisual media service, and this number will increase as the EU is enlarged, and in addition, the provisions of the Directive extend to other countries in the European Economic Area. It is therefore imperative that the consumer is properly informed in which Member State, and by which national regulatory authority, a given audiovisual media service has been licensed. There are four reasons for this.

    —  First, the consumer can immediately raise with the appropriate authority any concerns about an alleged infringement of the directive;

    —  Second, the proposed requirement to inform the consumer about the presence of product placement in an audiovisual media service, compensates all viewers in the EU, but especially those in the UK, in regard to the shortcomings in the definition of "surreptitious advertising" which we noted in paragraph 7 (above);

    —  Third, the definition of a "commercial communication" in article 2(f) of the e-Commerce Directive (eCD), , since it exempts "any communications relating to the goods, services or image of the company, organisation or person compiled in an independent manner" from the obligation to provide consumers with the information set out in article 6 eCD, and thus permit the reintroduction of surreptitious advertising, and unannounced product placement into non-linear audiovisual media services;

    —  Fourth, any viewer of a non-domestic television broadcast must be able to exercise a right of reply, or equivalent remedy, under the provisions of article 23 of the Directive. However, the conditions for exercising a right of reply vary widely between different EU Member States, and despite the requirement in article 23(3)—which was introduced in 1997—for Member States to ensure that a sufficient time span was allowed to exercise a right of reply, virtually nothing has been done to ensure that viewers do indeed have sufficient time to exercise that aspect of the directive in relation to transfrontier television broadcasts.

    —  Moreover, although the Draft Directive does require providers of audiovisual media services to provide recipients of the service with information about the provenance of the service (article 3c), and about the existence of a sponsorship agreement or the presence of product placement (article 3h(c)), the draft text contains no guidance to member states about either the placing or the prominence of these pieces of information.

  VLV considers that, while continuing to support the country of origin principle, the European Union should take steps to harmonise the manner in which these categories of information are presented to consumers. To this end, together with its colleagues in the European Alliance of Listeners and Viewers Associations (EURALVA), it is proposing that the national regulatory authorities of all Member States should be instructed to make arrangements to harmonise the manner in which this information is presented, across all EU Member States.

  This could either be done by amending the constitution and membership of the Contact Committee established by article 23 of the Directive, or by establishing a separate committee of national regulatory authorities.

  In addition, VLV would oppose any moves by the UK Government to rely exclusively on the provisions of the e-Commerce directive to regulate non-linear audiovisual media services.

9.   Prohibit the audiovisual commercial promotion of goods or services deemed to be injurious to public health

  In the opinion of VLV, the prohibition on television of advertisements, and the sponsorship of programmes, which promote tobacco products and medicines on prescription have worked well and have now been accepted by most consumers and viewers. The same applies to the irresponsible promotion to young people of the benefits of drinking alcoholic beverages. Moreover, the qualitative prohibitions on television advertising and tele-shopping in article 12 of the Television without Frontiers Directive have also worked well. It therefore seems perfectly sensible to extend all these same prohibitions to audiovisual commercial communications and audiovisual media services in articles 3g and 3h of the Draft Directive. This will not only establish a level playing field between television broadcasters and providers of non-linear audiovisual media, but it will also ensure continuity of regulatory provision, given that, as noted in recital 35 of the draft text, non-linear audiovisual media services have the potential to partially replace linear services.

  VLV therefore supports the continuance and extension of the qualitative prohibitions to both linear and non-linear audiovisual media communication.

  10.   Prohibit the abuse of free speech in line with the restrictions permitted by article 10 of the European Convention on Human Rights.

  Article 3e of the Draft Directive prohibits any incitement to hatred based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation. Some interest groups, such as the Audiovisual Stakeholders (an industrial lobby group which does not include any consumers) have argued that these prohibitions will have a chilling effect on free speech, since they are not [yet] specifically banned in UK law. Moreover, it will be recalled that article 10(2) of the European Convention only permits the restriction of free speech provided that those restrictions are (a) prescribed in law, (b) necessary in a democratic society, and (c) and are enacted [among other things], for reasons of public safety, the prevention of disorder, and the protection of the reputation or the rights of others.

  In the opinion of VLV, the prohibitions on incitement to hatred which are proposed by the European Commission, are indeed necessary in a democratic European society which is increasingly marked by the global ebb and flow of different races, ethnic minorities, people with varying religious beliefs, and attitudes towards age, gender and sexual orientation. Moreover, such a ban would not merely proscribe in law any incitements to hatred in audiovisual media services which threatened the reputation and the rights of other groups in a society, it would also be likely to ensure public safety and prevent public disorder.

  VLV therefore considers that these prohibitions on free speech in audiovisual media services are both timely and proportionate.

THE PLACE OF ESTABLISHMENT OF AUDIOVISUAL MEDIA SERVICES

  11.  The Draft Directive extends the rules of establishment which have traditionally applied to television broadcasting services to all audiovisual media services, with the exception that in determining the appropriate jurisdiction for non-EU media service providers, the Member State with the satellite uplink now takes precedence over the Member State which has the satellite capacity.

  VLV supports these changes.

DEROGATION FROM THE COUNTRY OF ORIGIN PRINCIPLE

  12.  Under Article 2a of the Draft Directive a Member State may only derogate from the Directive (ie block an audiovisual media service from another EU Member State) if it manifestly, seriously and gravely infringes article 22 (the protection of minors) and/or article 3e (incitement to hatred). The former is an area where the UK has traditionally exercised this power in relation to pornographic television broadcasts, and it could be appropriate to exercise the latter in relation to broadcasts from another EU Member State which might incite public disorder.

  VLV therefore continues to support these provisions, although it also recognises that in exercising the latter power, it may be necessary for the UK to demonstrate in law that the exercise of its power to restrict the rights of UK citizens to receive information and ideas from an audiovisual media service based abroad are indeed necessary in a democratic society.

  13.  The "Audiovisual Stakeholders" claim that non-linear audiovisual media services are information society services that are covered by the e-Commerce Directive (eCD), and therefore fall outside the scope of the new Draft Directive. Moreover, the audiovisual stakeholders claim that "[T]he fact that Member States can derogate from eCD has been cited as a justification for extending the TVwF Directive." At this point in time, VLV has been unable to obtain any firm clarification from either Ofcom or from UK civil servants, about the future range and extent of the future overlap between the two directives. At this stage therefore, VLV will only consider the implications for consumers of audiovisual media services of the freedom of the UK to derogate from the two directives, although we would also welcome further investigation into this aspect by the House Lords.

  14.  The first point to emphasise is that the freedom to derogate is a de facto contradiction to the country of origin principle on which both directives are based. In our view therefore, it should be used as sparingly as possible. It would be quite wrong to deny UK users of audiovisual media services the right to use an audiovisual media service that has been approved by another EU Member State. It would also contravene the fundamental principle of free trade between EU Member States.

  15.  The second aspect of derogation is that the power to derogate in the Draft Audiovisual Media Services Directive is tightly limited. [see paragraph. 12 (above)]. However, the e-Commerce Directive offers a Member State a range of several reasons for derogation, including the curious phrase "the protection of consumers, including investors".[eCD, article 3(4)(i)] VLV has failed to discover in what ways investors can be classified as consumers of the services in which they invest.

  16.  The third aspect of derogation is related to the freedom of a Member State, including the UK to delegate its derogated powers to a co-regulatory or a self-regulatory body. The Inter-institutional agreement on better law-making, which was agreed between the European Parliament, the Council of the European Union and the Commission of the European Communities in December 2003, lays down guidelines for the introduction of co-regulation and self-regulation. Crucially, the Inter-institutional agreement envisages the introduction of co-regulation on a national basis (articles 18-21), but limits the introduction of self-regulation to self-regulation at a European level (articles 22-23). However, the UK audiovisual stakeholders claim that self-regulation "would be the most effective way to patrol so-called "non-linear" services." Their argument is that "alternative regulatory mechanisms are more effective in monitoring the fast-moving and disparate "non-linear" industry than state regulation at a European level." [http://www.audiovisualstakeholders.org] Unfortunately, this self-justificatory phrase elides both self-regulation with co-regulation, and state regulation with European level regulation. It fails to recognise the difference between the minimum provisions specified in the draft directive, and the manner in which they are implemented by individual Member States, it also flies in the face of the careful distinctions which were drawn in the European Inter-institutional Agreement between co-regulation and self-regulation. It ignores the fact that EU Member States are allowed to introduce domestic regulations which are more strict than those required in the Draft Directive. It also ignores the fact that properly constituted co-regulatory arrangements can respond just as quickly as self-regulatory mechanisms in the fast-moving and disparate "non-linear" industry.

  17.  Worse, from the consumer's perspective, if every Member State is empowered to derogate its non-linear audiovisual media services from the eCD and then to delegate them to a domestic self-regulatory mechanism, will be the failure of the European Union to establish any semblance of common European standards in matters of public policy, in any of the following areas—the protection of minors and the fight against any incitement to hatred on the grounds of race, sex, religion or nationality, violations of human dignity concerning individual persons, or the protection of public health.

  VLV considers that the requirement in the European Inter-institutional agreement for audiovisual stakeholders to establish self-regulatory arrangements at the European level remains a powerful incentive for those stakeholders to harmonise their self-regulatory arrangements across the whole of the European Union, and it therefore welcomes the preliminary discussions designed to achieve this aim which have already been taking place under the leadership of the European Commission.

GENERAL REQUIREMENTS ON ALL AVMS PROVIDERS

  18.   VLV supports the requirements in article 3d to ensure that providers of audiovisual media services do not make their services available in such a way that might seriously impair the physical, mental or moral development of minors.

  19.   VLV supports the proposal in article 3c to introduce a requirement for every media service provider to provide basic identification requirements and contact details.

  20.   VLV also supports the proposal to prohibit the incitement to hatred based on se, racial or ethnic origin, religion or belief, disability, age or sexual orientation.

  21.   VLV also supports the proposal to extend the right of reply provision to all linear services.

  22.  Moreover, VLV would like to see the right of reply provision extended to a range of non-linear services. From a user's perspective, the exercise of a right of reply empowers the user by enabling her/him to have access to both sides of an accusation about the behaviour or the views of an individual. It is not merely an excuse for an aggrieved person to rebut an accusation. This will be especially important on the so-called social networking services, such as YouTube and MySpace. If used well, these services can enable similarly inclined people to find one another, but if used malignly, they can enable an unscrupulous minority to edit and manipulate audiovisual media material for political propaganda purposes in order to create a mob of partially-informed users. The most obvious example has been the preparation by terrorists of the pre-suicide video for subsequent release. But the potential political abuse of non-linear audiovisual media material has also reached the USA. In the recent primary elections for the American senate, Senator Joseph Lieberman lost the primary election partly because the aides of his political opponent used the Internet to spread repeatedly brief audiovisual clips of Lieberman's gaffes. There is no way of stopping the distribution of audiovisual clips of politically embarrassing moments, particularly on amateur blogs which are anyway excluded from the purview of the draft directive. However, VLV considers that it would strengthen the democratic electoral and political process if the right to reply, or its equivalent, which is allowed on all linear services, were extended, albeit in a modified form, to all licensed non-linear services.

PRODUCT PLACEMENT

  23.  Although product placement is currently banned in the UK, the prohibition on surreptitious advertising in the current TVwF Directive has not prevented some EU Member States such as Austria and Spain from allowing product placement within their TV services. The proposed changes in the new draft directive would remedy this confusion by permitting properly regulated product placement. However, these changes would not require the UK, which currently bans product placement, to allow its introduction into UK services, since an individual Member State would still be allowed to introduce regulations that are stricter than those which are set down in the directive.

  24.  VLV broadly supports the proposed limits on product placement in the directive, namely that:

    —  There shall be no product placement in news or current affairs programmes, or in audiovisual media services from children and documentaries;

    —  Neither the scheduling, nor the editorial content of the programme may be influenced in a manner that affects the editorial independence of the media service provider, nor may it directly encourages purchases; and

    —  Viewers must be clearly informed about the presence of product placement.

    —  However, VLV considers that the UK Government should pay closer attention to the last point. Firstly, even though the UK government's Issue Grid claims that viewers must be clearly informed "at the beginning, during and/or at the end of the programme", the text of the draft directive actually says that programmes containing product placement "must be identified at the start of the programme in order to avoid any confusion on the part of the viewer." The difference is that the formulation in the UK Government's Issue Grid allows the programme maker to choose where and when to inform the viewer, whereas the Commission's formulation requires the notification to be placed at the start of the programme. VLV prefers the formulation of the EU Commission in the Draft Directive.

    —  Indeed, VLV would go further and require the viewer to be clearly informed at the beginning, during, and the end of the programme.

    —  Moreover, VLV supports the proposal put forward by the European Alliance of Listeners and Viewers Associations, for the information about the presence of product placement in a programme to be presented in a standard form in each Member State. This would ensure that UK viewers were properly and clearly informed about the presence of product placement, in an identical manner, regardless of the EU Member State in which the audiovisual media service was licensed. The details could be agreed by a Committee of National Regulatory Authorities, such as that proposed in paragraph 8 (above).

LISTED EVENTS AND SHORT REPORTS

  25.  VLV considers that the provision in article 3a for a Member State to draw up a list of major events which members of the public must be allowed to see on free-to-air television has worked well and should be retained.

  26.  VLV considers that the UK should support the introduction on linear services of a right of access to short news reports of events of high public interest. This right already exists in UK law, but by including it in the new EU Directive it would enable UK broadcasters—and thus all UK viewers—to have access to short reports of such events in all the other Member States of the EU and the European Economic Area.

  VLV therefore supports both of these proposals.

CONCLUSION

  27.  In general, VLV supports most of the proposals in the Draft Directive on Audiovisual Media Services. It considers that all of the duties which will be imposed on non-linear services are reasonable and not unduly burdensome. In general the burdens imposed on linear services such as television broadcasting have been relaxed.

  28.  VLV also recognises that non-linear audiovisual services are developing in a rapid and fast changing manner, but even so it considers that arrangements for co-regulation, as envisaged in the EU's Inter-institutional Agreement, will be able to ensure that the UK is able to guarantee a speedy and flexible regulatory response to a fast-changing audiovisual media world.

  29.  In addition, VLV supports the proposal from the European Alliance of Listeners and Viewers Associations proposing that National Regulatory Authorities should be charged with the responsibility of harmonising the manner in which the regulatory authorities in each EU Member State require users of audiovisual media services and viewers of television broadcasting services to be informed about the country of origin of the service, the existence of product placement, and the manner in which to exercise a right of reply to a transfrontier audiovisual media service.

  30.  Finally, VLV considers that in order to ensure that UK citizens can keep themselves properly informed, the right of reply—or fair treatment—should be extended to all non-linear audiovisual media services.

2 October 2006



 
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