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PROPOSED LAW NO. 215 /X

PL 210/2005

2008.06.19

Exhibition of Motives

In the constitutional framework of protecting the freedom of the press, it is imperative of the State

ensuring the independence of the media organs in the face of political power and

economic and prevent the concentration of the holding companies of general information bodies.

It further determines the fundamental text that the law ensures, with a generic character, the

disclosure of the title and means of financing the media organs

(n. 3 and 4 of Article 38 and (4) b) and c) of Article 39 (1) of the Constitution of the

Portuguese Republic).

Also the Program of the XVII Constitutional Government recognizes that " In no

circumstance the freedom of information can be held hostage to economic or political interests. The

concentration of the property of the media may call into question the effective pluralism and independence of the service

public information " . Attentive to the need for legislative intervention in this matter, the

Government has then taken over the commitment of " to establish limits to horizontal, vertical and

multimedia ", though " without prejudice to the desirable existence of Portuguese media groups that better

face the challenges of internationalisation and modernisation of the sector ", being for so much needed

confer " a relevant role to the media regulator in the definition of the situations of

significant market and in the determination of the safeguards to be applied in such cases " .

In this framework, the present proposed law, departing from the finding that the

segment of the media, fundamental to the operation of the

democracy, does not constitute a merely economic market, lacking a

autonomous and complementary legislative approach in the face of the laws of competition, takes as

central objective the defence and promotion of pluralism of expression and independence in the

mass media in the face of political and economic power.

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For so much, and in such a way as to ensure the transparency of the ownership of the means of

media, the publicising obligations of its entitlement are strengthened and

provided for specific reporting obligations as to the holding of shareholdings

qualified-here deemed to be those representing the detention of 5%, or more, of the

social capital or voting rights in the participating society. Thus, in addition to whether

subjecting companies pursuing social media activities to information

subsequent to the Regulatory Entity for Social Communication (ERC) of the content of the

acts of registration referring to their title, practiced with the competent entities,

the obligation of annual publication of the list of holders and holders of shareholdings is expected

social, including the identification of the entire chain of entities to whom it should be imputed

a qualified participation. In the same sense, and the similarity of what already succeeding

to societies with the capital open to public investment, it is proposed that the holders

of qualifying stakes in companies pursuing communication activities

social informs the ERC when they exceed certain participation highs, or

when they reduce their holdings below such highs.

In the field of restrictions of a subjective nature to the exercise of activities of

media, prevent, for the first time, outside the framework of the provision of the service

public radio or television, or of the provision by news agencies of services

informations of public interest, which the State, the Autonomous Regions, the authorities

places and their associations, as well as the remaining public entities to proceed, directly

or through state or regional public companies, municipal companies,

municipalized or intermunicipal, media activities.

This restriction is balized, allowing these entities to be holders of

communication bodies of an institutional or scientific nature, taking into account the willing

in the applicable sectoral legislation.

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For their shift, the political parties or associations, the trade union organisations, employers or

professionals, as well as professional public associations cannot exercise or

fund, directly or indirectly, media activities, and may, in the

however, to be holders or to subsidise social media bodies that review nature

doctrinaire, institutional or scientific. Already the State, the Autonomous Regions, the authorities

places or their associations, as well as the remaining public entities can support organs from

media as long as respected the principles of advertising, objectivity and not

discrimination.

The only restrictions on the target property provided for in this proposal of

law respect the impediment of horizontal concentrations in the radio or the

television. Thus, on the one hand, no natural or legal person can exercise dominance

about more than a radio operator, or about more than a television operator,

responsible for the organization of licensed or authorized program services for the

same coverage area. On the other hand, no natural or legal person can

hold, directly or indirectly, a number of programme service licences

radiophones or local-scope television sets greater than 30% of the total number of licences

assigned on the set of the national territory.

It is incumbent on the ERC to ensure the non-concentration of the title of the media

social, its independence in the face of political and economic power and the possibility of

expression and confrontation of the various currents of opinion (Article 39 of the Constitution). To

both, competes " to participate, in articulation with the Competition Authority, in the

determination of economically relevant markets in the media sector;

have a comment, under the law, on the acquisitions of ownership or practices of

concertation of the entities pursuing social media activities; proceed to

identification of the powers of influence on public opinion, in the perspective of defence of the

pluralism and diversity, and may adopt the necessary measures to their safeguard; "

(points. o) , p) and q) of Article 24 (3) of the Statutes of the ERC approved by the Law

n. 53/2005, of November 8).

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For this purpose, it is the aim of this proposed law to clarify, on the one hand, the form of

articulation of the regulator media with the competition regulator, and determine, by

another, the way in which it can intervene autonomously for the exercise of the said

competencies.

Thus, being the intervention of the mandatory ERC, by way of opinion, in the framework of the

subjects subject to intervention by the Competition Authority involving companies of

media, inter alia, in the assessment of prohibited practices or in the control of

concentration operations, it should orient itself to the appreciation of its impact on the

pluralism and the independence of the respective means. For so much, the ERC should not only

proceed to ascertain the compliance, by the companies involved, of their obligations

legal in the matter of pluralism and independence, as ponder, according to the area

geographical and the characteristics of the products or media services there

made available, a set of legal indicators liable to afer the risk of the operation

of concentration, or of a prohibited practice, when justifiable, for pluralism or

independence. In case of identification of such a risk, and only in that case, the opinion of the

ERC will be binding.

The ERC can, in addition to intervening, accessorally with a view to the defence of pluralism and

independence in the evaluation of relevant practices or operations for the purpose of the competition,

ascertain autonomously the exercise, on the part of the companies of media , of powers of

influence on public opinion. It is not now about apharming the risk that determined

abusive practices, mergers or acquisitions of companies can launch on pluralism and

independence from the media, but rather to weigh the consequences of the

eventual concentration of audiences around one single communication group.

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The intervention of the regulator of media find yourself here, once again, perfectly

balled: after registering, according to recognised benchmarking instruments in the

half, obtaining, by a same company, and in a period of six months, of quotas of

circulation or audience equal to or greater than 50% in a given reference universe

(taxactively, the reference universe of the general information periodicals, from

national scope and the reference universes of radiophonic program services or

televisions, generalists and informative thematics, of national and regional scope), or equal

or higher than 30% in more than one of these universes, the ERC starts a procedure

of enquiries. This can understand, in summary, three phases: a) notification of the company

to show, wanting, on the basis of legal indicators, and notwithstanding obtaining

of the said quotas, the non-existence of danger to pluralism or independence; b)

notification of the company so that it presents, wanting, proposal to fill the

indicators of pluralism and independence whose absence has been pointed out by the entity

regulator and form of its implementation; c) implementation of the measures to safeguard pluralism

and of the independence listed in the law, such as the ban on the acquisition of new organs from

media or the ban on applications to new titles enabled for the

exercise of radio or television activities.

The autonomous intervention of the ERC in defence headquarters of pluralism and independence

it is thus based on two key ideas: participation, as it assumes the

collaboration of the media operators in achieving a suitable solution

for the risk situation detected; and respect for property and initiative rights

private, as at no time is it required to divest from shareholdings or

assets for the satisfaction of the demands for pluralism and independence in the means of

media.

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In matters of informational independence, they resume and develop now the

fundamental principles already verted in the Status of Journalist: the orientation of the organs of

social communication should be defined in a generic way through the editorial status,

staying vetted the intervention or meddling of a person who does not exercise managerial or

direction in the area of information in the contents of an informative nature of the organ or in the

form of your presentation.

Finally, recognizing that the high degree of sector mutation does not commiserate with

the dogmatic establishment of concrete limits to the concentration of the means of

media, and knowing that the European Commission has recently launched a study

on indicators of pluralism that may have an impact on this matter, the prediction is proposed

expressed from a standard that, without prejudice to the legislative changes that are warranted,

impose a weighting, at three years, on the need for the revision of the legal regime

proposed.

The governing bodies of the Autonomous Regions, the Association, were heard

National of Portuguese Municipalities, the National Association of Freguesies, the Entity

Regulator for Social Communication, the Union of Journalists and the Confederation

Portuguese of the Media.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

CHAPTER I

General provisions

Article 1.

Object and purpose

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1-A-This Law promotes pluralism, independence in the face of political power and

economic, the disclosure of the title and the non-concentration in the means of

media.

2-The legal regime established in this Law shall be without prejudice to:

a) The application of the legal regime of competition, specifically in relation to

control of concentration operations, agreements or concerted practices between

companies, of abuse of a dominant position, of abuse of economic dependence and

of State aid, by the competition regulator;

b) The application of the legal regime of electronic communication networks and services,

specifically in relation to the imposition of regulatory duties by the

regulatory authority of communications, following procedures of

analysis of relevant markets;

c) The implementation of the social participations transparency regime of the societies

with the capital open to the investment of the public, specifically as to the

communication duties, provided for in the Securities Code;

d) The verification, at all time, by the Regulatory Entity for Communication

Social (ERC), the fulfilment of the obligations of pluralism and independence

own from the public service media, established in the

respective legal regime;

e) The adoption of procedures by the ERC, within the framework of its competences and in the

terms of the respective statutes, with a view to the promotion and defence of pluralism.

Article 2.

Definitions

1-For the purposes of this Law, it is understood by:

a) "Companies pursuing social communication activities", the entities that

regularly make available to the public periodical publications, services of

radiophonic programmes, services of TV programmes or other content

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subjected to editorial treatment and organized as a coherent whole, from

free or costly mode, regardless of distribution support or the

means of diffusion used, or a set of such entities when, although

legally distinct, constitute an economic unit or maintain between

si ties of interdependence or subordination;

b) "Social Communication bodies of a doctrinaire nature", those that target

predominantly disclose any ideology or religious creed;

c) "Institutional media of an institutional nature", those that target

predominantly disclose the activities of any legal persons,

when pursued by these or under their responsibility, without character

publicist;

d) "Scientific media bodies of a scientific nature", those who target

predominantly disseminate research and scientific or academic studies,

as well as those that are predominantly aimed at education and dissemination

of subjects of manifest interest in the scientific, technological or cultural area;

e) "Domain" means the existing relationship between a natural or a legal person and a

company when, regardless of whether the domicile or the head office is located in

Portugal or abroad, the one may exercise on this, direct or

indirectly, a dominant influence. It is considered to exist domain when

a natural or legal person:

i) Holds a majority stake in the social capital or the majority of

voting rights;

ii) May exercise the majority of the voting rights, in accordance with the terms of agreement

parassocial; or

iii) May appoint or remove the majority of the holders of the organs of

administration or surveillance.

f) "Qualified participation", the detention, direct or indirect, isolated or joint, of

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5%, or more, of the social capital or voting rights of the participating entity.

2-For the calculation of the qualifying holdings, the voting rights are considered:

a) Directly held by the participant;

b) Held by the participant in the title of usufruct;

c) Held by third parties on their own behalf, but on account of the participant;

d) Held by society that with the participant find themselves in domain relation

or group;

e) Held by holders of the right to vote with which the participant has

concluded agreement for your exercise, save if by the same agreement is

linked to following third-party instructions;

f) Held by the members of their bodies of administration or surveillance,

when the participant is a legal person;

g) That the participant may come to acquire, by virtue of agreement already entered into with the

respective holders;

h) Inherent in holdings held in guarantee by the participant or by this

administered or before you deposited, if the voting rights have been given to you

assigned;

i) Held by holders of the right to vote who have conferred on the participant

discretionary powers for their exercise;

j) Held by persons who have entered into some agreement with the participant who

vision to acquire the domain of the society or to frustrate the domain change or that,

Otherwise, constitute an instrument of concerted exercise of influence

about the participating society;

l) Attributable to any of the persons referred to in one of the previous paragraphs by

application, with due adaptations, of constant criterion of some of the other

points (.

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3-For verification of the existence of domain, they are considered, with the necessary

adaptations, the voting rights referred to in the various paragraphs of the preceding paragraph.

4-For the purposes of the j) of paragraph 2, shall be presumed to be an instrument of concerted exercise

of influence the agreements on the transmissibility of representative shareholdings

of the social capital of the participating company, unless it proves, in the face of the ERC, that the relationship

established with the participant is independent of the influence, effective or potential,

about the participating society.

Article 3.

Scope of application

1-Are subject to the rules set out in this Law the companies that are continuing

media activities and the holders of social shareholdings in those

companies, specifically:

a) The news agencies;

b) Natural or legal persons who edit periodical publications,

regardless of the distribution support they use;

c) The radio and television operators, regarding programme services

that they disseminate or the complementary content they provide, under their

editorial responsibility, by any means, including by electronic means;

d) Natural or legal persons making available to the public, by means of

electronic communication networks, radio programme services or

television, in so far as it kayaks them to decide on their selection and aggregation;

e) Natural or legal persons who make available to the public on a regular basis,

via electronic communication networks, contents submitted to

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editorial treatment and organized as a coherent whole;

f) The holding companies of social shareholdings in any of the entities

referred to in points a) a e) .

2-They are not subject to the rules laid down in this Law the entities referred to in paragraph f)

of the preceding paragraph when the shareholdings per se held result from:

a) First acquisition arising from special insolvency proceedings, during a

maximum period of three years;

b) Acquisition arising from special inventory process, when those

constitute the only inventoried heritage and the heir shall not be direct holder

or indirect from another means of social communication;

c) Delivery by third party, in the title of guarantee of any obligations, when not

they have been conferred voting rights or discretionary powers for the

your exercise.

3-Unless the provisions of Article 13, the scheme provided for in this Law shall not apply to the

media bodies of a doctrinaire, institutional or scientific nature.

CHAPTER II

Disclosure of the title

Article 4.

Mandatory nominativity of shares

The representative shares of the social capital of the companies holding bodies of

social communication are compulsorily nominative.

Article 5.

Public disclosure of the title

1-A the relationship of holders and holders of shareholdings in the social capital of companies that

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pursue social media activities, with the discrimination of their respective

percentages of participation, as well as the indication of the media organs

that to those they belong to, is made public annually, in the six months after the

term of the economic exercise, in the respective electronic site and on the electronic site of the

ERC.

2-A ratio of holders and holders mentioned in the preceding paragraph shall identify

the entire chain of entities to whom a qualified participation should be charged to us

terms of Article 2 (2), including holders and holders of shareholdings in

societies holding social participations.

3-Companies pursuing social media activities should also,

annually, make public the management report and the balance sheet and demonstration of the

net results, in the six months after the end of the economic exercise, in the

respective electronic site, without prejudice to the fulfilment of shorter time limits to which

find themselves legally obliged.

Article 6.

Duty of subsequent communication

1-All registrants relating to the title of the undertakings continuing

media activities become subject to subsequent communication to the ERC

which should include information on:

a) The identification of the shareholdings and the respective complete characteristics,

specifically, rights especially included or excluded and the value

nominal or percent;

b) The identification of the holder and, in the case of contitiality, of the common representative;

c) The identification of the applicant of the act of registration;

d) The identification of the beneficiary of the act of registration;

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e) The description of the facts that substantiated the duty to be subject to registration,

specifically, the constitution, modification or extinction of rights of

property, usufruct, pawn, arrest, penhora or any other situation

legal which affects social shareholdings or the purposeful of legal actions or

arbitrations relating to the registered rights or the registration itself, as well as the

respective decisions.

2-A ERC approves the subsequent communication model for the effects of the number

previous.

Article 7.

Special information duties

1-Who achieves or exceeds 5%, 10%, 20%, 1/3, 50%, 2/3 and 90% of the social capital or

of the voting rights of companies pursuing social media activities, and

who reduces their participation to lower value to any of those limits, must, in the

period of seven working days counted from the occurrence of the fact:

a) To inform the ERC and the participating entity;

b) Giving knowledge to the entities referred to in the previous paragraph of the situations which

determine the imputation to the voting rights participant, pursuant to paragraph 2

of Article 2 para.

2-A communication carried out in the terms of the preceding paragraph shall include:

a) The identification of the entire chain of entities to whom the qualified participation is

imputed to us in accordance with Article 2 (2);

b) The percentage of voting rights attributable to the holder of the participation

qualified, the share of social capital and the number of shares

correspondents.

3-The duty of identification of the imputation chain links any entity that detains

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qualified participations in companies pursuing communication activities

social in Portuguese territory, regardless of their subjection to foreign law.

4-Should the duty of communication be entrusted to more than one participant, one can be made a

only communication that exonerates the remaining ones, to the extent that that respects all

the requirements demanded.

5-In the case of commercial companies by quotas, in the collective name or in the scheme of

commanded, is only dispensed with communication to the participating entity provided for in the

present article.

6-The holders of qualified participation in companies pursuing activities of

media subject to the Portuguese law must provide to the ERC, at the request of this,

information on the origin of the funds used in the acquisition or reinforcement of that

participation.

Article 8.

Disclosure

1-A Participated entity shall, within three working days, publish the information received

in the terms of paragraph 1 of the previous article in the respective electronic site.

2-A ERC shall also carry out the publication of the information referred to in paragraph 1 of the article

previous in its electronic site.

3-A The participating entity and the holders of its social bodies must inform the ERC

when they have knowledge or fundata evidence of non-compliance with the duties of

information provided for in the previous article.

4-In the case of commercial companies by quotas, in the collective name or in the scheme of

commanded, is waived the publication provided for in paragraph 1.

Article 9.

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Absence of transparency

1-In the absence of the communication provided for in Article 7, in the case that the latter does not identify any

the chain of entities to whom the qualified participation is to be charged or if, in

any case, there are founded doubts about the identity of the persons to whom

the voting rights relating to a qualified participation may be charged,

or on the full compliance with the communication duties, the ERC notifies this fact

those interested, the organs of administration and surveillance and the chair of the table of the

general assembly of the company pursuing social media activities.

2-Up to 30 working days after the notification, may those interested to present proof intended

clarifying the aspects raised in the ERC notification, or take action with a view

to ensure the transparency of the title of the qualifying shareholdings.

3-If the elements are fertilised or the measures taken by the interested parties do not put an end to the

situation, the ERC publicizes the lack of transparency as to the entitlement of the shareholdings

qualified in question, specifically in one of the first pages of two papers of

general and nationwide information, in body of easy reading and normally

used for news texts, without prejudice to the corresponding procedure against-

ordering.

4-In the case of companies open to the investment of the public, the advertiicitation referred to in the

previous number is preceded by hearing of the Stock Market Commission

Securities.

Article 10.

Parassocial agreements

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1-The parassocial agreements that aim to acquire, maintain or strengthen a stake

qualified in a company pursuing social media activities are

reported to the ERC, within three working days after its celebration.

2-A ERC may publish or order the publication, by the persons that of them are parties, of the

full text or of excerpts of the said parassocial agreements, depending on the degree of

confidentiality of the information contained in them, to the extent that they are

relevant for the purposes of disclosure of the title and the means of financing the

media organs.

3-The social deliberations taken on the basis of votes cast in execution of agreements

not communicated or not published in the terms of the preceding paragraphs are nullable,

unless it is proved that deliberation would have been adopted without those votes.

Article 11.

Extension

The duties provided for in this Chapter are extendable, with due adaptations, the

legal persons in a non-societtal form, specifically associations, cooperatives or

foundations, which pursue social media activities.

CHAPTER III

From access to activity

Article 12.

Principle of specialty

Companies pursuing social media activities that consist of the

organization of services of generalist programs, informative thematics or in the editing of

periodical publications of general information have as their main object the exercise of these

activities.

Article 13.

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Restrictions on access

1-The media activities may not be exercised or financed, direct

or indirectly, by:

a) Political parties or associations;

b) Trade union organisations, employers or professionals;

c) Professional public associations.

2-The restrictions set out in the preceding paragraph shall not prevent the entities referred to therein from

being holders or of subsidizing media of a doctrinaire nature,

institutional or scientific, taking into account the provisions of the sectoral legislation.

3-The State, Autonomous Regions, local authorities and their associations, or other

public entities may not proceed, directly or through public companies

state or regional, municipal, inter-municipal or metropolitan enterprises,

media activities.

4-Except for the provisions of the preceding paragraph the pursuit of activities of

social communication, in the constitutional terms, through:

a) Entities enabled for the provision of the public television service;

b) Entities enabled for the provision of public radio service;

c) Entities holding news agencies news providers of interest services

public.

5-A The restriction provided for in paragraph 3 does not preclude the entities in it from being holders of

media bodies of an institutional or scientific nature, taking into account the

provisions of sectoral legislation.

6-A The granting of public supports to media bodies must comply with the

principles of advertising, objectivity and non-discrimination.

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Article 14.

Conditions for the allocation of licences

1-The principles of pluralism, diversity and non-concentration in the means of

social communication should be especially considered, attests to the characteristics of

each market, in the identification of the conditions of admission and the graduation criteria

of applications for public tenders for the allocation of licences for the exercise of the

radio and television activities, in addition to those provided for in the sectoral legislation,

specifically:

a) In the competitions for the allocation of licences for the organisation of services of

television programmes;

b) In the competitions for the allocation of licences for the selection and aggregation of

services of television programmes;

c) In the competitions for the allocation of licences for the organisation of services of

radiophonic programs.

2-In any case, no natural or legal person may hold, direct or

indirectly:

a) A number of services licences of local-level TV programmes

greater than 30% of the total number of licences assigned in the territory's set

national;

b) A number of services licences of local-scope radiophonic programs

greater than 30% of the total number of licences assigned in the territory's set

national.

CHAPTER IV

From non-concentration

Section I

General provisions

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Article 15.

Prohibition of domain

1-No natural or legal person may exercise mastery over more than one

television operator responsible for the organisation of programme services,

licensed or authorized for the same area of coverage.

2-No natural or legal person may exercise mastery over more than one

radio operator responsible for the organisation of programme services, graduates

or authorized for the same area of coverage.

3-Without prejudice to the corresponding counterordinational process, business is void

legal notice concluded in violation of the provisions of the preceding paragraphs.

Article 16.

Legal independence

The companies that carry out the distribution, without character of exclusivity, of publications or

of programme services compulsorily constitute separate legal persons from those that

are holders of the products or services per se distributed.

Article 17.

Limits on distribution

1-The abusive exploitation of a dominant position in the market of distribution is prohibited

of products or services provided by companies pursuing activities of

media, as well as any agreements or concerted practices that have

as a result to prevent or hinder, in an unwarranted manner, the access of products or

competing services to the same distribution networks, or access by distributors

competitors to such products or services, under the terms provided for in the legal regime of the

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competition.

2-A ERC notifies the competition regulatory authority when, within the framework of its

assignments, please check, officiously or at the request of any person concerned, exist

evidence of the occurrence of the behaviors referred to in the preceding paragraph, to which

this authority starts the proper process.

Section II

From the intervention of ERC in the context of competition

Article 18.

Binding opinion

1-The decisions of the Competition Regulatory Authority relating to matters of its

competence involving companies pursuing communication activities

social are subject to prior advice from the ERC, which is only binding when you check

exist founded risk for pluralism or independence in the face of power

political or economic.

2-For the purposes of the provisions of the preceding paragraph, the ERC carries out the verification of the

compliance with legal obligations, where applicable, of pluralism and of

independence by the companies concerned, specifically:

a) Existence of expression and confrontation of the various currents of opinion;

b) Respect for the right to constitute drafting boards or by other

legitimate forms of intervention by journalists in the respective editorial orientation;

c) Existence of mechanisms to safeguard the independence of journalists and

directors;

d) Respect for the exercise of the right of reply or rectification.

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3-For the purposes of at-risk of the risk referred to in paragraph 1, the ERC proceeds, according to

the geographical area and characteristics of the products or media services there

made available, to the verification of the following indicators, without prejudice to those who come to

be adopted by Community law:

a) Existence of different media organs, ownership of different

companies or business groups;

b) Diversity of the editorial orientations of the different communication bodies

social;

c) Provision of access to distribution networks to the different organs of

media;

d) Provision of the services of programmes, publications or other content

subject to editorial processing to the different distribution networks;

e) Accessibility of sources of funding, specifically through revenue

advertisement, for the different media bodies;

f) Accessibility of the employment market for journalists.

4-A ERC may also, for the afferition of the risk to pluralism or independence

in the face of political or economic power, take into account geographical areas and products or

services related to those considered in the terms of the preceding paragraph, if the links between

them to allow a company to increase, by leverage, its power of influence.

5-Additionally and still for the purposes referred to in paragraphs 2 a to 4, the ERC may have in

account for the antecedents of the companies concerned, in respect of respect for pluralism and

of maintenance of independence in the face of political and economic power.

6-The prior opinion is delivered within 30 working days counted from the date of notification

to ERC, under penalty of presuming favorable.

7-The time frame referred to in the preceding paragraphs is automatically suspended by the deadline

maximum of 15 working days whenever ERC notifies the interested or any other

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entities for the provision of information, delivery of documents or opinions.

8-The deadlines to be met by the competition regulator, as per

established in the legal regime of the competition, automatically stay suspended

from the date of the dispatch of the application for the opinion of that authority to the ERC, to the date of the

receipt of the opinion of this entity or, failing that, up to the expiration date of the

respective deadline.

Section III

From the autonomous intervention of the ERC

Article 19.

Universes of reference

1-For the purpose of identification of powers of influence on public opinion, they are

fixed as reference universes:

a) Periodical publications of general information of national scope;

b) Generalist radiophonic program services and informative thematics of

regional and national scope;

c) Generalist TV programme services and informative thematic programmes of scope

regional and national.

2-The audiences of the services of radiophonic and television programmes of local scope, in the

measure in which these proceed, through the frequencies that are allocated to them, to the mere

relaying of other services from national or regional scope programs, are,

when asores, accounted for as audiences of these programme services in the

respective reference universes.

Article 20.

Enquiries of powers of influence

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ERC starts an administrative fact-finding procedure, when it takes notice

of one of the following situations:

a) A company that pursuits social media activities holds, in a

determined universe of reference, taking into account the average value of each

semester and in accordance with recognized benchmarking instruments in the middle, 50% or

more:

i) of the average circulation per edition, in the case of the press;

ii) of the audiences, in the case of radio or television;

or

b) A company that pursuits, simultaneously, media activities

in more than one reference universe holds, taking into account the average value of

each semester and in accordance with recognized benchmarking instruments in the middle,

30% or more:

i) of the average circulation per edition, in the case of the press;

ii) of the audiences, in the case of radio or television,

in any reference universe other than the most significant universe in

circulation or hearing.

Article 21.

Demonstration of the inexistence of risk for pluralism and independence

1-After finding, officious or at the request of any interested person, of any of the

situations provided for in the previous article, the ERC notifies the fact to the company concerned, the

which has the faculty to demonstrate, within 20 working days, that:

a) There is no check on any of the situations provided for in the previous article; or

24

b) Notwithstanding the existence of some of those situations, they are safeguarded the

pluralism and the independence of the respective media bodies.

2-For the purposes of the provisions of the b) from the previous number, the company demonstrates the

compliance with legal obligations relating to pluralism and independence,

particularly:

a) Existence of expression and confrontation of the various currents of opinion;

b) Respect for the right to constitute drafting boards or by other

legitimate forms of intervention by journalists in the respective editorial orientation;

c) Existence of mechanisms to safeguard the independence of journalists and

directors;

d) Respect for the exercise of the right of reply or rectification.

3-Still for the purposes of the provisions of the paragraph b) of paragraph 1, the company in question demonstrates

the filling of the following indicators of pluralism and independence, without

injury to those who come to be adopted by Community law:

a) Diversity of the editorial guidelines of the media bodies by you

held;

b) Existence of self-regulatory instruments, such as style books, codes

of conduct, providers of the readers, listeners, viewers, or others;

c) Provision of specific space or time of programming to minorities.

4-For the purpose of the above-mentioned demonstration, the company concerned may additionally

invoke its antecedents in respect of pluralism and maintenance

of independence in the face of political and economic power.

5-A ERC analyzes the elements presented by the company concerned or, should this not

use the faculty conferred on it by the n. 1, only those who are from your

knowledge, deciding by the filing of the process when it checks:

25

a) The thresholds set out in the previous article have not been achieved; or

b) Being safeguarded, in the light of the legal obligations and the indicators referred to

in paragraph 3, the pluralism and independence of the respective bodies of communication

social.

Article 22.

Draft decision

1-When it occurs that there is founded risk for pluralism and independence of organs

of social communication in the face of political and economic power, the ERC draws up a project

of decision, within 30 working days counted from the submission of the pronunciation by the

entity notified or, in its absence, counted from the expiry of the period provided for in paragraph 1

of the previous article.

2-The draft decision must be substantiated by reference to compliance or the

fulfillment, respectively, of the legal obligations and generality of the

indicators referred to in paragraph 3 of the preceding article, when applicable, and shall identify,

of among the safeguard measures provided for in Article 24, those that show

necessary, appropriate and proportionate to the defence of pluralism and independence vis-à-vis the

political and economic power.

3-Notification of the draft decision, the companies concerned may, within 15 days

useful:

a) To deduce opposition to the draft decision; or

b) Present to the ERC proposal to fill the indicators of pluralism and

of independence whose absence has been pointed out in the draft decision,

identifying the conditions and terms of the respective implementation, including the deadline of the

its adoption, which may not exceed three months from the date of the notification

of the final decision.

26

Article 23.

Final decision

1-A ERC proffers final decision within 20 working days counted from the presentation, by the

company concerned, from the opposition to the draft decision, of the communication of the proposal

provided for in paragraph b) of paragraph 3 of the preceding Article or, in its absence, of the term of the term

legal for the purpose.

2-Verified the existence of founded risk for pluralism and independence in the face of

political and economic power, the final decision establishes, in accordance with the principles of

need, suitability and proportionality, the safeguard measures to be implemented, of

between those provided for in Article 24 para.

3-In the case of a proposal submission under the terms set out in paragraph b) of paragraph 3 of the

previous article and of the ERC consider that the same allows you to ward off the risk to the

pluralism and independence, the final decision sets out its compliance, and since

soon determines the safeguard measures to be applied in the event of default.

4-When the recipient companies of the safeguard measures offer networks and

electronic communications services, the final decision of the ERC should be preceded by

opinion mandatory, but not binding, on the part of the regulatory authority of the

communications.

5-The opinion referred to in the preceding paragraph shall be delivered within 10 working days, counted

of the date of the notification to the regulatory authority of the communications, under penalty of whether

assume favorable.

6-The deadlines to be met by the ERC are automatically suspended between the date of

notification to the regulatory authority of communications and the date of issuance of opinion

or, failing that, the expiration date of the respective deadline.

Article 24.

Safeguard measures

27

1-To ensure pluralism and independence in the media,

may be applied, cumulatively or alternatively, the following measures of

safeguard:

a) Prohibition of acquisition or merger of companies pursuing activities of

media, even if it is not the subject of subject concentration operations

prior notification pursuant to the legal regime of the competition, approved

by Law No. 18/2003 of June 11;

b) Ban on the acquisition of media organs, yet it is not the case

concentration operations subject to prior notification under the terms of the scheme

legal competition, approved by Law No 18/2003 of June 11;

c) Impediment of access to licence award contests for the exercise of the

radio and television activity;

d) Impediment of submission of applications for authorisation for the exercise of the

radio and television activity;

e) Non-renewal of licences or permits for the exercise of the activity of

radio and television.

2-The measures referred to in the preceding paragraph fall on the companies and still on the

natural or legal persons who on them exercise domain or who by them are

dominated and vigorously invigorate during the time when any of the situations occur

provided for in points a) and b) of Article 20 para.

3-A safeguard measure provided for in paragraph e) of paragraph 1 can only be applied to companies

enabled with more than one licence or authorisation for the exercise of the activity

of radio or television and only in relation to that which corresponds to the service of

underage programs.

28

4-Are void the legal acts or business practiced in violation of the decision that has

determined the application of the safeguard measures referred to in ( a) and b) of paragraph 1.

5-In the case of the implementation of the safeguard measures provided for in points c) , d) and e) of paragraph 1,

the ERC informs the regulatory authority of the communications, referring to it, for the

effect, copy of the final decision.

Article 25.

Entitlement through non-societtal form

Legal persons in a non-societtal manner, specifically, associations, cooperatives

or foundations that pursue social media activities, are subject to,

necessary adaptations, to the provisions of this Chapter.

CHAPTER V

OF THE EXERCISE OF TITLE

Article 26.

Prohibition of interference in editorial guidance

1-A The orientation of the media bodies should be defined in a generic way,

through the approval, under the law, of an editorial status, becoming vetted to

any person who does not exercise direction or managerial in the area of information, the

issue of directives, instructions or any kind of meddling that is incited on the

contents of a vehicular informative nature or about the form of its presentation.

2-Except for the provisions of the preceding paragraph the guidelines aiming at the strict

acatament of legal prescriptions, the default of which originates civil liability,

criminal or counter-ordinance by the companies pursuing activities of

media.

3-A violation of the provisions of paragraph 1 constitutes counterordinance punishable by the fine

29

provided for in paragraph c) of Article 20 (1) of the Law No 1/99 of January 13, amended

by Law No. 64/2007 of November 6.

Article 27.

Temporal constraint

1-A practice of legal acts involving the change of the field of undertakings which

pursue social media activities upon empowering leave for the

exercise of radio and television activity can only occur three years after the

original assignment of the licence, or one year after the last renewal, and shall be subject to

authorization from the ERC.

2-A ERC decides, heard the stakeholders, within 30 working days, after verification and

weighting of the initial conditions that were determinant for the assignment of the title and

of the interests of the potential auditorium of the provided program services, ensuring

safeguarding the conditions that they have enabled to decide on the original project or on

subsequent changes.

3-A ERC permission is without prejudice to the competences assigned to the authority

communications regulator, in relation to the rights of use of frequencies, in the

terms of the law.

4-The provisions of this Article shall apply, with the necessary adaptations, to persons

collective non-society-form, specifically associations, cooperatives or

foundations, which pursue social media activities.

CHAPTER VI

Of the responsibility

Section I

From the illicit of mere social ordering

Article 28.

30

Counter-very serious counterorders

1-Constituts very serious counterordinations:

a) Non-subjective to the nominative form of the representative shares of the social capital

of the holding companies of social media bodies, as imposed by the

article 4;

b) The non-publication of the relationship of holders and holders of stakes in the capital

social media of companies pursuing social media activities, with the

discrimination of the respective percentages of participation, the indication of the

media organs that those belong to, and the non-identification of

the entire chain of entities to whom a stake is to be charged

qualified, as required in paragraph 5 and 2 of Article 5;

c) The non-publication of the management report and the balance sheet and demonstration of the

net results, as required in Article 5 (3);

d) The concealment of holding qualified stakes in companies that

pursue social media activities, with the intention of avoiding the

compliance with the special information duties provided for in paragraph 1 of the article

7.

e) Non-communication to the ERC or the participating entity of obtaining, overtaking

or reduction of a qualified participation, in accordance with the terms set out in paragraphs 1 and 2

of Article 7;

f) The non-communication of the parassocial agreements that they aim to acquire, maintain or

strengthen a qualified participation in a company pursuing activities of

social communication, as imposed by Article 10 (1);

g) The pursuit of social media activity that consists in the organisation

of generalist or thematic program services or in the editing of

periodical publications of general information by companies that do not have as

31

object the main purpose of its exercise, as required by Article 12;

h) The pursuit or financing of social media activities, direct

or indirectly, by any of the entities provided for in Article 13 (1),

without prejudice to the exception provided for in paragraph 2 of the same article;

i) The pursuit of social media activities by any of the entities

referred to in Article 13 (3), without prejudice to the exceptions provided for in paragraph 4 and

5 of the same article;

j) The detention, direct or indirect, by a natural person or legal person of a

number of services licences of television or radiophonic programmes of

local scope higher than the limit set out in Article 14 (2);

l) The exercise of dominance over more than one television operator, or operator of

radio, responsible for the organization of licensed programs or

authoritations for the same area of coverage, in violation of the prohibitions provided for

in Article 15 (1) and (2), regardless of whether that exercise results, or not,

of legal business;

m) The distribution of publications or programme services in violation of the

provisions of Article 16;

n) The non-acatation of ERC decision imposing the safeguard measures to

that aludes the points a) and b) of Article 24 (1);

o) The practice of legal acts involving the change in the field of business

that pursue social media activities upon empowering leave,

without authorization from the ERC, as required by Article 27 para.

2-The counter-ordinations provided for in the preceding paragraph are punishable with fine

€ 15,000.00 a € 75,000.00, when committed by natural person, and from € 75,000.00 a

€ 375,000.00, when committed by legal person.

3-The counter-ordinations provided for in points j) and l) may give way to the application of the sanction

32

suspension accessory of the licence or authorization of the programme services

provided by the offenders for a period of not more than 30 days, taking into account the

gravity of the illicit.

4-A counter-ordinance provided for in the paragraph o) of paragraph 1 determines the revocation of the licence of the

program services of the company whose domain has been changed.

5-The counter-ordinations provided for in paragraph 1 are punishable by way of negligence, with

reduction to 2/3 of the minimum and maximum limits.

Article 29.

Serious counterorders

1-Constituts serious counterordinations:

a) The lack of subsequent communication or incomplete communication of acts

registrands referring to the title of the companies pursuing activities of

social communication, in the terms provided for in Article 6 (1);

b) The lack of publication, by the participating entity, of the information received on the

obtaining, exceeding or reducing a qualified participation, in the terms

provided for in Article 8 (1);

c) The lack of information to the ERC, by the participating entity or by the holders of its

social organs, when they have knowledge of the non-compliance with the duties of

information on the part of holders of qualified shareholdings, pursuant to

provided for in Article 8 (3)

2-The counter-ordinations provided for in the preceding paragraph are punishable with fine

€ 10,000.00 a € 37,500.00, when committed by natural person, and from € 50,000.00 a

€ 250,000.00, when committed by legal person.

3-The serious counterordinances are punishable by negligence, with a reduction to 2/3

33

of the minimum and maximum limits.

Article 30.

Light counterorders

1-Constituts lightweight counterordinations:

a) The lack of provision of information or delivery of documents, on the deadline

referred to in Article 18 (7);

b) The lack of delivery of documents or provision of relevant information to

the characterization of the media and for the evaluation of the

need for corresponding normative suitability, within the time specified in the terms

of Article 32 (2)

2-The counter-ordinations provided for in the preceding paragraph are punishable with fine

€ 2,000.00 a € 12,500.00, when committed by natural person, and from € 25,000.00 a

€ 125,000.00, when committed by legal person.

3-Light counterorders are punishable by way of negligence, with a reduction to 2/3 of the

minimum and maximum limits.

Article 31.

Competence and sanctionatory procedures

1-Compete the ERC prosecute and punish the practice of the counter-ordinations provided for in the

present law.

2-If the same fact constitutes counterordinance sanctioned by this Law and by

sectoral legislation of the media, the targeted sanction regime prevails

in that sectoral legislation.

3-The sanctionatory procedures shall be governed by the provisions of the illegitimate regime of mere

34

social ordinance and, secondarily, by the provisions of the Code of Criminal Procedure.

4-The product of the fines reverses in 60% to the state and in 40% to the ERC.

CHAPTER VII

From the evaluation of legislative implementation

Article 32.

Follow-up

1-A ERC proceeds to the annual collection of relevant information for the characterization of the

media in the perspective of the defence of pluralism, independence

and of its non-concentration and for the evaluation of the need for the corresponding

normative suitability.

2-The entities notified for the purpose of delivery of documents or provision of the

information referred to in the preceding paragraph refers you to the ERC in time to be fixed by

this one, between five and 30 working days, with no benefit of any extension period.

3-A ERC sends to the Assembly of the Republic a report on the assessment referred to in

n. 1, up to the May 31 of each year.

4-The report referred to in the preceding paragraph is published on the ERC's electronic website.

Article 33.

Evaluation

Three years elapsed on the entry into force of this Law, the Assembly of the Republic

appreciates the need to proceed to your review.

CHAPTER VII

Of the final and transitional provisions

Article 34.

Articulation with sectoral regulatory authorities

The competition regulator and the national regulatory authority of the

communications actively collaborate with the ERC in the application of this Law, owing

35

conclude a cooperation protocol that establishes the necessary procedures.

Article 35.

Subsidiary law

The administrative procedures provided for in this Law are to be subsidized

applicable the standards of the Administrative Procedure Code.

Article 36.

Amendment to Law No. 2/99 of January 13

Article 35 of Law No. 2/99 of January 13, as amended by Law No. 18/2003, of 11 of

June, it shall be replaced by the following:

" Article 35.

[...]

1-[...]:

a) From 498.80 a to € 2493.99, the failure to comply with the provisions of paragraphs 2 and 3

of Article 15, paragraph 2 (2), in Article 19 (2) and 3 and 3

in Article 26 (1);

b) [...];

c) [...];

d) [...].

2-[...].

3-[...].

4-[...].

5-[...].

6-[...].

7-[...]. "

Article 37.

Amendment to Law No. 4/2001 of February 23

Articles 68 and 69 of Law No 4/2001 of February 23, amended by Laws

36

n ° 33/2003 of August 22, and No. 7/2006 of March 3, go on to have the following

wording:

" Article 68.

[...]

[...]:

a) [...];

b) [...];

c) [...];

d) From € 9,975.96 a € 99.759.58, the failure to comply with the provisions of the n. 1

and 2 of Article 19, in Article 30, in Article 35 (1) and 2, para.

articles 39 and 40, in Article 41 (1), in Article 71 (3), para.

denigration of the right provided for in Article 59 (1), as well as the

violation of the maximum emission power limits set in the

respective acts of technical licensing.

Article 69.

[...]

1-The repeated disrespect of the conditions and terms of the approved project, the

violation of the rules on thematic program service associations and

non-compliance with obligations relating to the production and diffusion of services

news, as well as the repeated inobservance of the transmission of the number

mandatory hours of issue or own schedule in the cases not

covered by the forecast of the point d) of Article 70, may give way, attentive to

gravity of the illicit, to the ancillary sanction of suspension of the licence or

authorization for the performance of the activity for a period not exceeding three

months.

2-[...].

3-[...].

37

4-[...].

5-[...].

6-[...]. "

Article 38.

Abrogation standard

They are revoked:

a) Paragraphs 2, 3 and 4 of Article 4 and Article 16 of Law No 2/99 of January 13,

amended by Law No. 18/2003 of June 11.

b) Articles 7, 8, 18 and 18 c) of Article 70 of Law No 4/2001 of 23 of

February, amended by the Laws No. 33/2003 of August 22, and No. 7/2006, of 3 of

March.

Article 39.

Entry into force

This Law shall come into force 30 days after the date of its publication.

Seen and approved in Council of Ministers of June 19, 2008

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs

38