On 10 August 2021 There were protests in defence of free media across Poland. On the next day in the Sejm there was a vote on the so-called Media Act or "Lex TVN" – in favour of the bill they voted 228 Members against 216, 10 abstained and did not vote 6. What exactly is the proposal for a bill that creates great emotions on both sides of the political conflict?
The Media Act (or ‘Lex TVN’) is a colloquially defined parliamentary bill to amend the Broadcasting Act (print 1389). In a small but significant way it changes the sound Article 35 Act of 29 December 1992 about radio and television (i.e. Journal of Laws of 2020, item 805), which will affect the award of the concession. If the bill is passed, section 2 point 1 This provision will read as follows:
A concession for a company with direct or indirect foreign participation may be granted if: ...
- the direct or indirect participation of foreign persons in the company or the direct or indirect participation of foreign persons in the share capital of a limited liability company or a public limited liability company and, in the case of a simple public limited liability company, in the total number of shares of that company, does not exceed 49%.
This doesn't end with change. It will also be changed Article 35(3) The Broadcasting Act. Its proposed wording is:
The concession may also be granted to a foreign person whose registered office or permanent residence is in a Member State of the European Economic Area, provided that such person is not dependent, within the meaning of the Commercial Companies Code, on a foreign person whose registered office or permanent residence is in a non-member State of the European Economic Area.
Also added section 4:
For use section 2 and 3 foreign persons whose registered office or permanent residence is in a Member State of the European Economic Area and who are non-subsidiaries, within the meaning of the Commercial Companies Code, of a foreign person whose registered office or permanent residence is in a non-member State of the European Economic Area shall be treated as Polish entities. Application section 1-3 must not lead to discrimination against Polish entities against foreign persons.
In addition, the draft law states that entities not complying with the conditions referred to in section 2 and section 2 are obliged to adapt their capital structure and their contracts and statutes. They'll have it. 6 months after the entry into force of the Act.
What does this mean?
As we can read in the explanatory memorandum of the project and on the Sejm's website, the idea is to clarify regulations that enable the National Broadcasting Council to effectively counter the possibility of any non-EU actors taking control of RTV broadcasters, including entities from countries that pose a significant threat to State security.
In this way companies based in Poland and companies based in the European Economic Area countries will have the same status in the light of the Broadcasting Act.
According to the justification for the project, "The proposed solution is to ensure legal security for potential and current concessionaires, while protecting the public interest in the field of radio and television and guaranteeing equality of rights and obligations for Polish and foreign companies".
Targets seem to be most noble. Another sentence is the Management Board of TVN S.A., which, in a statement, emphasises that the decision of the Sejm on the above draft law is directly directed at TVN and is an attack on freedom of speech and media independence[1]. Is this a legitimate accusation?
This is not the right place for political declarations and all the more so to present sympathy and antipathy, but it is interesting that the bill in its current form can actually lead to problems with TVN's concession24, owned by American company Discovery. However, the commonly used name "Lex TVN" did not come out of nowhere.
Soon the project will be directed to the Senate. Meanwhile, Marek Suski announced that an additional amendment would be tabled. Undoubtedly, the media bill creates great emotions, the more we cannot be sure of the fate that ultimately awaits him.
Michał Zdanowski
Tax consultant in Russell Bedford Poland. Graduate of the Faculty of Law and Administration
University of Warsaw, Graduate of the Postgraduate Tax and Tax Law Study of the University of Warsaw, Graduate of the Postgraduate Accounting and Finance Studies of the Warsaw School of Economics. By
the period of study gained experience in law and tax law firms. Since September 2013 He is associated with Russell Bedford Poland. It specialises in documenting transactions between related parties.
[1] See the above statement on the Facebook page of TVN.