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Challenges of Concentrated Ownership in Media Industry

Explore the dangers of concentrated ownership in media, such as reduced diversity of content and centralization of power. Learn about drafting and enforcing rules to prevent dominance, and restrictions on foreign ownership. Contact Michael Karanicolas at michael@law-democracy.org for more information.

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Challenges of Concentrated Ownership in Media Industry

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  1. ` Concentration of Ownership Prepared by Michael Karanicolas Legal Officer Centre for Law and Democracy

  2. Dangers of Concentrated Ownership • Undermines diversity of content • Reduces local flavour of media • Economies of scale can be harmful to smaller competitors • Leads of uniformity of opinions on major issues • Centralises power

  3. Drafting the Rules • Rules against overall dominance • Rules against local dominance, which often operate on a sliding scale based on market size • Rules against cross-media dominance

  4. Enforcing the Rules • Denying or refusing to renew licenses • Preventing mergers • Through broader anti-trust legislation • Forced divestment • Mandates for editorial independence or more stringent transparency rules can also be applied as mitigating forces

  5. Restrictions on Foreign Ownership • Can be legitimate, particularly in poorer countries where there is a threat of domination by wealthier outside interests. • But these must be applied with the public interest in mind, and in recognition of the positive impact that foreign investment can play in the media sector.

  6. Thank you for listening! Michael Karanicolas michael@law-democracy.org @RTI_Law www.law-democracy.org

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