3 November 2014 ‘Strengthening Media Freedom’ – Working visit by a delegation from the Republic of Serbia

2. VRM – Presentation Flemish Regulatory for the Media 1.State reform in Belgium and broadcasting competences 2.Tasks and organisation of the VRM 3.Regulation of commercial communication 4. Monitoring of commercial communication 5. Media ownership

3. VRM – Presentation Flemish Regulatory for the Media 1.State reform in Belgium and broadcasting competences The federal State is responsible for defense, justice, social security, home affairs, foreign affairs, monetary policy, fiscal policy, prices and incomes policy, antitrust, commercial, corporate and labor law. Belgium has three Communities: the Flemish Community, French Community and German-speaking Community. The Communities are responsible for culture, education and so-called personal matters. These personal matters are all closely linked to the language. In addition, Belgium has also three regions: the Flemish Region, the Walloon Region and the Brussels Capital Region. The Regions are responsible for a number of policy issues of economic nature, such as spatial planning, environment, housing, public works and transportation.

4. VRM – Presentation Flemish Regulatory for the Media Where can the responsibility for broadcasting be situated within this perspective? To understand this we must first briefly outline the historical context: First, we have to refer to the articles 127 and 130 of the Belgian Constitution, which stipulate that the Communities are responsible for cultural affairs. Radio and television broadcasting has to be considered as a cultural affair. This means that radio and television broadcasting is a competence of the Communities. Note: Telecommunication is not a cultural competence and remains at the federal level.

5. VRM – Presentation Flemish Regulatory for the Media In short: The federal government responsible for: Telecommunications and airwave police Press and film Broadcasting in the Brussels Capital Region as far it concerns the two Communities Services for information society Copyrights The Communities are responsible for: radio and television broadcasting

6. VRM – Presentation Flemish Regulatory for the Media 2. Tasks and organisation of the VRM The Flemish Regulator for the Media is an agency which has to enforce the media regulations within the Flemish Community, settle disputes related to the media regulations and issue media licences. In practice: -supervision of compliance with and restriction of violations on the provisions of the Media Act (basically commercial communication); -receiving different types of notifications of broadcasters; -identifying enterprises with considerable market power and enforcing obligations; - mapping concentrations in the Flemish media sector; -supervision of compliance by the public broadcaster of the Flemish Community’s management agreement and annual reporting on this subject to the Flemish Government.; -calculating the coverage of regional broadcasters and the according contributions service providers have to pay.

7. VRM – Presentation Flemish Regulatory for the Media But also: -Settling disputes that have arisen following the broadcast of programs which might seriously affect the physical, mental or moral development of minors; -Settling disputes concerning programs that encourage hatred for reasons of race, sex, religion or nationality or programs with discrimination between different ideological or philosophical ideas. Remark: this competence does not include journalistic ethics

Organisation Chart (The VRM has 19 members of staff) 8. VRM – Presentation Flemish Regulatory for the Media

9. VRM – Presentation Flemish Regulatory for the Media Management: highest level: Board (3 Members under which the CEO) (concludes the management agreement with the competent Minister, establishes the budget and redistributes the budgetary funds) Content: 2 Chambers: - General Chamber (5 members) (is in charge of most provisions of the Media Act and makes sure they are upheld by broadcasting companies) - Chamber for impartiality and protection of minors (13 members) (is in charge of the provisions in the Media Act dealing with impartiality and protection of minors and makes sure they are upheld by broadcasting companies)

10. VRM – Presentation Flemish Regulatory for the Media Funding of the VRM How is the Regulator financed? The Regulator is funded by: A yearly grant: ,- € The registration fees of radio stations: ,- € Total yearly budget: ,- €

11. VRM – Presentation Flemish Regulatory for the Media 3.Regulation of commercial communication -Basis: European Audiovisual Media Service Directive (AVMS) -The AVMS Directive has been transposed into the Flemish Media Act in Several categories of commercial communication with their own definition: Advertising, sponsorship, teleshopping, product placement, -In the Flemish Community: * public broadcaster (television): advertising and teleshopping is not allowed self promotion, sponsorship and product placement are allowed (radio): advertising is allowed * private broadcasters (television): advertising, teleshopping, product placement are allowed (radio): advertising is allowed

Main items: -Commercial communication must be easy to identify as such -Television advertising and teleshopping shall be kept distinct from other parts of the programme by visual and/or acoustic and/or spatial means -Advertising and sponsorship are not the same: * Advertising: related to a trading activity to promote the supply of goods or services in return for payment or similar compensation * Sponsorship: related to a contribution to the financing of broadcasting services or programs, with the aim of raising awareness of its name, trade mark, image, activities or products - The share of television ads and teleshopping ads may not exceed twenty percent per clock hour. -The broadcasts of television films, feature-length films and news programs may be interrupted once per scheduled period of at least thirty minutes for advertising and/or teleshopping., - Product placement is allowed as well for the public broadcaster as for the commercial broadcasters 12. VRM – Presentation Flemish Regulatory for the Media

4.Monitoring of commercial communication How the supervision of commercial communication is organised? The VRM can launch a procedure against a broadcaster: -After a complaint -On its own initiative 13. VRM – Presentation Flemish Regulatory for the Media

Description of the procedure before the VRM - complaint Complaint comes in ↓ The VRM administration asks the broadcaster to submit a copy of the program ↓ The VRM administration investigates the complaint, establishes a report and submits that report to the Chamber ↓ The broadcaster is invited to submit written remarks with its defense ↓ The complainer and defendant are invited at a hearing ↓ After the hearing the Chamber takes a decision: The complaint was well-founded (possible sanction: warning up to fine of 125,000 euros) or unfounded. 14. VRM – Presentation Flemish Regulatory for the Media

Description of the procedure before the VRM – at own initiative The VRM administration decides to investigate the programs which will be broadcast by several broadcasters during a specific timeframe on a specific day (sampling) ↓ We work with an external company (Nielsen) which is asked to provide us these recordings ↓ The external company provides the recordings ↓ The investigation department of the VRM investigates the recordings, establishes a report and submits that report to the Chamber ↓ The Chamber decides whether a procedure will be launched or not ↓ If so, the broadcaster is invited to submit written remarks with its defense ↓ The broadcaster is invited at a hearing ↓ After the hearing the Chamber takes a decision: The complaint was well-founded (possible sanction: warning up to fine of 125,000 euros) or unfounded. 15. VRM – Presentation Flemish Regulatory for the Media

5.Media ownership Main tendencies: Radio: (1 public broadcaster, 3 regional broadcasters and 294 local broadcasters) -There are few radios that can be heard throughout Flanders and there is a strong tendency towards grouping of local radio stations. Television: (1 public broadcaster, 2 major commercial broadcasters and 25 other commercial broadcasters) -The most popular programs are made by a variety of independent TV production companies. -The broadcasting companies are far more concentrated. The market is dominated by 3 major broadcasting companies. It is difficult for new players to achieve a large market share. Television distribution: (7 service providers) -Very few players are active in this market. Written press: (2 newspaper publishers) - There are only 2 newspaper publishers in the Flemish Community. The market for magazines is less concentrated. Internet: -It is difficult to demarcate the “Flemish” Internet sector. Many of the most popular internet sites controlled by foreign providers. 16. VRM – Presentation Flemish Regulatory for the Media

Media ownership General conclusion: The Flemish media sector as a whole is not dominated by a specific actor. 17. VRM – Presentation Flemish Regulatory for the Media

Thank you for your attention