'Audiovisual services' directive is likely to get European Parliament culture committee's approval

The culture and education committee at the European Parliament is gearing up to adopt its position on Tuesday 25 April, for a revision of the directive on audiovisual media services.

The compromise amendments seen by EUROPE are expected to help the member states introduce stricter rules on publicity during prime time listening and to compel VOD platforms to financially contribute to the creation of content.

It should be pointed out that in May 2016, the Commission presented a draft directive to create a fairer regulatory environment for traditional and video on demand (VOD) services. The text also proposed greater flexibility for rules governing advertising and supporting creativity in Europe by way of obligations to promote European content (see EUROPE 11558).

What the vote might look like

The compromise amendments dated 20 April are as follows:

• Advertising: the compromise amendments maintain the proposal for a “daily” 20% limit to replace the current “limit” (which is also 20%). To avoid viewers being subject to a barrage of evening advertising, the compromise amendments will allow member states to define a prime time window, the duration of which shall not exceed a period of four consecutive hours. They also explain that a film will not be able to be interrupted more than once every 30 minutes (as opposed to the 20 minutes proposed by the Commission). At the same time, compromise amendments ban advertising for electronic cigarettes and avoid advertising for alcoholic drinks being deliberately aimed at young people.
• Promotion of European content: the compromise amendments include the idea of obliging VOD services to provide and promote European content. During the vote, MEPs will be called on to give their positions on a 30% to quota. If this is rejected, another amendment not containing any figure on this occasion, will be put to a vote.
• Financial participation: similarly to the Commission proposal, compromise amendments will enable the member states to contribute financially to European VOD productions such as Netflix, which is covered within their scope or not covered within the respective territories that target their viewers. It should be pointed out that the most recent version of the compromise amendments abandons the idea of providing too much detailed regulation on the sharing of responsibilities between member states in the field involving service providers who make their editorial decisions in a country that is not the same as where their company HQ is based.
• Video sharing platforms: the compromise amendments bolster obligations of video sharing platform providers in the advertising field, whilst clearly opposing ex ante content control or screening during downloading. It obliges them to respect media chronology and encourage co-regulation and self-regulation.

Despite the 300 pages making up the voting list, there is a significant chance that the CULT committee will support the co-rapporteurs’ (Petra Kammerevert (S&D) and Sabine Verheyen (PPE)) opinion, insofar as the latter are from the two main political groups of European Parliament. In total, EPP and S&D members account for 17 of the 31 members on the CULT committee.

Stakeholders’ position

The, European Broadcasting Union (EBU) supports the majority of compromise amendments, particularly on facilitating the access to content for its members and citizens, as well as a new clause protecting the integrity of content. With regard to the video sharing platforms, the EBU believes that the provisions proposed by the Commission will be improved by way of a more flexible definition of these platforms, which will help them adapt to changes and apply the qualitative criteria on advertising and sponsoring in the directive on these platforms. Wouter Gekiere, an adviser in European affairs at the EBU explained that their organisation would have preferred, “an hourly limit to a daily limit on television advertising”.

Private radio broadcasters support the compromise amendments whilst suggesting that the country of origin principle within it is strengthened (as suggested by the ALDE and ECR groups). As it is had already indicated at the end of last February (see EUROPE 11734), the Association of Commercial Television in Europe (ACT) is opposed to the introduction of quotas on the promotion of European content and claims that this would be in opposition to the principle of on demand services. The association also rejects any kind of taxation that would replace the country of origin principle with the country of destination. The director-general of the ACT, Grégoire Polad, explained, “an additional entry tax on VOD services would slow down the expansion of these services and particularly affect small member states”. He concluded that this would lead to operators, “looking twice before establishing and maintaining a service there”.

The European Consumers’ Organisation (BEUC) has warned against any watering down in existing rules and calls for stricter measures to help limit children’s exposure to advertising of unhealthy food. Johannes Kleis, Director of Communications, said that if it were adopted as it stood, the Commission’s legislative proposal would weaken current rules on advertising and product placement. He also said that consumers should be protected against excessive, hidden or inappropriate advertising and that this was even more important when it involved children.

Next steps

At the end of the vote, the co-rapporteurs are expected to call on their colleagues to grant them a negotiating brief. Under the terms of the new internal regulation of the parliament, a 10th of all MEPs will therefore be able to request, at the beginning of the plenary session, this decision to be put to a vote. If they do not do this, the co-rapporteurs will be able to begin negotiations with the Council as soon as the latter has reached its position. So far, three questions are still pending: extending the scope (whether to include social media), the jurisdiction and cooperation procedures, as well as quotas on European content and financial contributions. The Committee of Permanent Representatives to the EU is expected to tackle these questions on 26 April next, in view of reaching an agreement during the Culture Council on 23 May. (Original version in French by Sophie Petitjean)