Legal regulation of media ownership in Hungary Judit Bayer

Legal Framework Competition Act Competition Act Act on Radio and Television Act on Radio and Television rules on electronic mediarules on electronic media cross-ownershipcross-ownership No specific rules for the printed media No specific rules for the printed media

Ownership A terrestrial broadcasting television company owner may possess not more than 49% of the votes in the company. A terrestrial broadcasting television company owner may possess not more than 49% of the votes in the company. SBS Broadcasting Rt: Ownership ratio: 81 Ownership ratio: 81 Voting ration: 49% Voting ration: 49%

II. Influential owner (more than 25%) of a national terrestrial broadcaster Influential owner (more than 25%) of a national terrestrial broadcaster must not own any other broadcaster (more than 25% of it)

Concentration of channels A broadcaster may not broadcast 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.: specialized programme broadcasters, but: limit the time of advertisements

regional, local A regional or local broadcaster may not have influential ownership in another regional or local broadcaster of the same region. Exc: the regions are covered not more than 20% broadcasting time is left after a tender, while a new tender is published

cross-ownership The owner (influential ownership, publisher, founder) of a national daily paper may not acquire of a national daily paper may not acquire influential ownership (25%+1 of the votes) in a national broadcaster. exc.: cable. The owner (influential ownership, publisher, founder) of a national weekly paper may not acquire majority ownership (50%+1 of the votes) in a national broadcaster, exc. cable.

regional cross-ownership The owner (influential owner, publisher, founder) of a non-national daily paper, which reaches copies, may not acquire majority of votes in a broadcaster, whose region covers 80% of the area of the daily paper, and the reverse.

Competition Act: A company must ask for permission for a fusion, - if its net income or turnover exceeds 10 Mrd. HUF (40 M Euro), - so that both companies’ income or turnover alone exceed M. HUF ( 2 M Euros), - or if an earlier fusion has taken place in the past two years.

public authorities The main public authorities, are not allowed to get broadcasting licence. These include among others (examples) members of government, other public dignities, members of government, other public dignities, administrative bodies, judges, prosecutors, administrative bodies, judges, prosecutors, mayors, and similar local governors, or mayors, and similar local governors, or a political party – etc. a political party – etc. state-owned company, state-owned company, directly or indirectly.

At least 26% of the votes in a national broadcaster must be owned by At least 26% of the votes in a national broadcaster must be owned by or a Hungarian citizen, or a natural person living in Hungary, or a natural person living in Hungary, or a company seated in Hungary. company 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 revenue.

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