Legal regulation of media ownership in Hungary Judit Bayer

Legal regulation of media Legal regulation of media ownership in Hungaryownership in Hungary

Judit BayerJudit Bayer

Legal FrameworkLegal Framework

Competition ActCompetition Act Act on Radio and TelevisionAct on Radio and Television

• rules on electronic mediarules on electronic media• cross-ownershipcross-ownership

No specific rules for the printed No specific rules for the printed mediamedia

OwnershipOwnership

A A terrestrial broadcasting terrestrial broadcasting television television company owner may possess not company owner may possess not more than 49% of the more than 49% of the votes votes in the in the company. company.

SBS Broadcasting Rt: SBS Broadcasting Rt: Ownership ratio: Ownership ratio: 81 81 Voting ration: Voting ration: 49%49%

II.II.

Influential oInfluential owner wner (more than 25%) (more than 25%) of of a a national terrestrial national terrestrial broadcasterbroadcaster

must not must not own own any other any other broadcasterbroadcaster (more than 25% of it)(more than 25% of it)

Concentration of channelsConcentration of channels

A A broadcaster may not broadcaster may not broadcast broadcast more than more than - one national terrestrial program- one national terrestrial program - two regional plus four local programs- two regional plus four local programs - twelwe local programs.- twelwe local programs.

Exc.: sExc.: specialized programme broadcasterspecialized programme broadcasters, , butbut:: limit the time of advertisements limit the time of advertisements

regional, localregional, local

A regional or local broadcaster A regional or local broadcaster may not have influential ownership in may not have influential ownership in another regional or local broadcaster of the another regional or local broadcaster of the

same region. same region.

Exc: Exc: the regions are covered not more than the regions are covered not more than 20%20%broadcasting time is left after a tender, broadcasting time is left after a tender, while a new while a new tendertender is published is published

cross-ownershipcross-ownership

The owner The owner ((influential ownership, publisher, founderinfluential ownership, publisher, founder))

of a of a national national daily daily paper paper may not may not acquire acquire influential ownership influential ownership (25%+1 of the votes) (25%+1 of the votes) in a in a national national broadcasterbroadcaster. e. exc.xc.:: cable. cable.

The oThe ownerwner(influential ownership, publisher, founder) (influential ownership, publisher, founder)

of of a a national national weeklyweekly paperpaper may not may not acquire acquire majority ownership majority ownership (50%+1 of the votes) (50%+1 of the votes) in in a a national national broadcaster, exc. cable. broadcaster, exc. cable.

regional cross-ownershipregional cross-ownership

The owner The owner (i(influential owner, publisher, nfluential owner, publisher, founderfounder))

of a of a non-national daily non-national daily paper, paper, which reaches 10.000. copies, which reaches 10.000. copies, may may not acquire majority of votes in a not acquire majority of votes in a

broadcaster, whose region covers broadcaster, whose region covers 80% of the area of the daily paper, 80% of the area of the daily paper, and the reverse. and the reverse.

CCompetition Actompetition Act::

AA company must ask for permission for company must ask for permission for a a fusion, fusion,

- - if its net income or turnover exceeds if its net income or turnover exceeds 10 Mrd. HUF (40 M Euro), 10 Mrd. HUF (40 M Euro),

- - so that both companies’ income or so that both companies’ income or turnover alone exceed turnover alone exceed

500 000 M. HUF ( 2 M Euros), 500 000 M. HUF ( 2 M Euros), - - or if an earlier fusion has taken place or if an earlier fusion has taken place

in the past two years. in the past two years.

public authoritiespublic authorities

The main public authorities, are not allowed The main public authorities, are not allowed to get broadcasting licence. to get broadcasting licence.

These include among others (examples)These include among others (examples) members of government, other public members of government, other public

dignities, dignities, administrative bodies, judges, prosecutors, administrative bodies, judges, prosecutors, mayors, and similar local governors, or mayors, and similar local governors, or a political partya political party – etc. – etc. state-owned company, state-owned company, directly or indirectly.directly or indirectly.

At least 26% of the votes in a At least 26% of the votes in a national broadcaster national broadcaster must be owned must be owned by by

Hungarian citizen, or a or a natural person living in Hungary, or a natural person living in Hungary, or a company seated in Hungarycompany seated in Hungary..

MTM-SBS Rt. (TV2) 30%MTM-SBS Rt. (TV2) 30% M-RTL Rt. (RTL-Klub) 30%M-RTL Rt. (RTL-Klub) 30%

They together own 90% of advertising They together own 90% of advertising revenue.revenue.

Thank you!Thank you!