Ah, competition rules Hungarian airwaves

When a country signs up for EU membership it accepts the rules of the club. Hungary – and others in the EU 2004/2006 class – had a hard time accepting that Brussels takes this acquis communautaire seriously. The reality check was the summons to appear before the European Court of Justice (ECJ).

The Hungarian government decided, and announced Thursday (July 19), to amend its media law rather than face EC Competition Commissioner Neeley Kroes in court, a sure loser. The penalty for losing an ECJ judgment – fines and funding cuts – is far worse than explaining to those protected how times have changed. Hungary will now remove limits to cable and broadband coverage.

Mrs Kroes smacked down Hungary’s media law in May 2006 as “…depriving cable operators of their right to provide broadcasting transmission services wherever they see fit. This restricts competition both among cable operators and between infrastructures, to the detriment of consumer choice.”

The DG Competition statement Thursday explained, “…such a lack of competition typically leads to higher prices, less innovation and slower take up of these services."

For the (formerly) protected broadcasters, cable operators and telecoms this is horrible news. For them, high prices are good and costly innovation is bad. For politicians raggedly hoping to keep less predictably compliant media at bay it’s worse news.

RTL Media (RTL Klub), SBS/ProSiebenSat (TV2) and Magyar Telekom will face bottom-line pressure from Viasat (MTG) and others willing to chase customers with popular program offerings, more services and lower prices.

Digital TV and radio services will get a boost from the revamped media law, which the National Radio and Television Commission (ORTT) plans to reveal sometime this month. Entrenched providers, including State broadcaster MTV, dominate the first authorized digital multiplex. An auction for as many as four digital multiplexes will take place before the end of the year.

– July 21, 2007

Keywords:Hungarian media,European media law

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