Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: The Newspaper Publishing Industry

Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries 
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relevant for the democratic functioning of newspapers will largely be left out of the 
discussion. We will rather focus on a brief overview of those policies directly affecting the 
economic position of newspapers and the policy challenges and changes caused by and/or 
affecting the (partial) shift from print to online news provision and the resulting converging 
news markets. A distinction is made between two types of policy measures: legislation and 
regulation (0) and financial measures (paragraph 0). In paragraph 0 the main conclusions are 
summarized.
5.2 
Legislation and regulation 
Two of the main policy areas which are relevant for the economic development of newspaper 
markets are crossmedia ownership regulation, and regulation concerning copyright and 
advertising. 
5.2.1 
Media (cross)ownership regulation
Just like all markets newspaper publishing markets are subject to general competition law. In 
recent years several media companies that publish newspapers have been confronted with 
investigations by the EC DG Competition. Interventions concerned potentially unpermitted 
state aid for a newspaper publisher in difficulty (Greece, 2010), a too large scheme for 
promoting media pluralism and diversity of opinions (Finland, 2008 and Sweden, 2010) and 
too high level of media concentration resulting from the acquisition of another media firm 
(News Corp/BSkyB, 2010). 
Ownership limitations can be effectuated by general competition law, but can also be the 
result of stricter legislation developed specifically for media or newspaper publishing 
markets. General competition law implies limitations on maximum market share following 
mergers or acquisitions, and (ex post) measures against abuse of dominant positions 
(antitrust). In order to secure pluralism and diversity in media outlets, some Member States 
have imposed stricter (ex ante) regulation and try to prevent dominant market positions and 
concentration of so called ‘opinion power’ in one person or company. Policy instruments to 
achieve this are restrictions on media or cross media ownership (ICRI a.o., 2009). Specific (ex 
ante) legislation or regulation for the newspaper market can take on different forms: 
 Limitations to the market share a particular newspaper publisher can have in the 
newspaper market or to the maximum number of daily or weekly newspapers one 
person, company or group can own.
 Limitations to cross media ownership by prohibiting ownership of different media 
simultaneously when a company has reached a certain market share threshold in one 
market (for instance a prohibition for newspaper owners to also possess a TV channel 
in the same geographical market, when they have a market share of 35% or more). 
In a recent study, the Dutch Media Authority (2011) has looked at eight EU Member Sates 
and the way in which they apply media ownership legislation. Of these eight Member States, 
Belgium, Spain, Sweden and the Netherlands do not have (or only have rather limited) 
specific legislation to limit media ownership. Germany, France, Italy and the UK have cross-
ownership regulations for several media markets, such as the television and newspaper 
market. These rules address the combination of ownership of television broadcasting 
organisations (or shares in a broadcasting license holder) and daily newspapers. France and 
Italy defined a specific maximum share for market shares resulting from a merger or 
acquisition within a single media market. In the Netherlands convergence and the difficult 
economic position of newspaper publishers have been reasons to abolish in 2011 earlier cross 
media ownership rules.

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