a. Upcoming Commission Communication on VAT
b. Revision of Data Protection Directive
c. Competition issues
d. European Contract Law initiative
e. Consumer Rights Directive
Europe’s magazine media are at the forefront of the digital revolution, providing the recognised value of their brands and content on all digital platforms. The possibility to develop new business models for digital platforms is crucial and the sector continues to invest heavily in digital content for Europe’s citizens. However, there are barriers that pose challenges to fulfilling the huge potential.
EMMA works to raise awareness of these barriers, which include the application of higher VAT rates for online content compared to print; and competition issues which hinder the development of attractive and sustainable content offers.
a) Upcoming Commission Communication on VAT
The initiative:
- Upcoming Commission Communication, following the Commission Green Paper (consultation) on the future of VAT: ‘Towards a simpler, more robust and efficient VAT system’.
Relevance for magazine media:
- Although we have technologically neutral dissemination of the press, in the sense that articles reach their audiences in many different formats, currently Member States have to apply a standard VAT rate to online offerings, while they have the possibility of applying a reduced rate to the written press.
- Excluding electronically supplied services such as online periodicals from reduced VAT rates makes attaining a ‘vibrant digital market’ – one of the Commission’s main goals in its Digital Agenda – harder to achieve.
- By opening up the way for the application of reduced VAT rates for online content of magazines and periodicals, the EU will benefit citizens, businesses and ultimately Member States’ economies across the EU. EMMA calls for the current reduced VAT rates applicable for print magazines and periodicals to be extended to on-line content. As well as making quality editorial content more accessible to Europe’s citizens, the application of the reduced rate would also help provide a much needed boost to the magazine publishing sector.
Further information
- Commission Green Paper on the future of VAT
- Contact person: Amandine Labé – EU Affair Officer –amandine.labe@magazinemedia.eu - +32 (0)2 536 0608
b) Revision of the Data Protection Directive 95/46/EC
The initiative:
- Revision of Directive 95/46/EC on the protection of individuals with regard to the processing of personal data and on the free movement of such data
Relevance for magazine media:
- The current Directive, as well as making provision for the use of personal data for journalistic purposes (Article 9), without which editorial freedom is not possible, is also important insofar as it sets out rules which govern publishers marketing practices, which are vital means of preserving readership.
- Changes to Directive 95/46/EC must not unduly hinder direct marketing. This is essential for enabling the press sector to promote subscriptions, which are indispensable for distribution of the press. Making direct marketing more difficult and reducing possibilities to reach out to readers and potential readers will threaten media diversity and indeed some magazine publishers’ very survival. To help ensure a sustainable press sector we therefore urge the Commission to take a balanced approach in its future legislative proposal on data protection. (See our position paper for further details).
- The fear is that well-intentioned ideas when applied to paper in a proposal for a revised Directive might have the unintended effect of negatively impacting the possibility to safeguard readership or quality press, thereby harming freedom of expression; provision of quality journalism; media diversity; and ultimately democracy.
Further information
- Commission Communication on ‘A comprehensive approach on personal data protection in the European Union’
- Contact person: Catherine Starkie – Senior Legal Adviser – catherine.starkie@magazinemedia.eu - +32 (0)2 536 0602
The initiative:
- Commission investigation into anti-competitive practices impacting publishers. This investigation follows different complaints by search service providers and publishers and will analyse whether Google has abused a dominant market position in online search, placing preferentially its own services in search results compared to the services of its competitors.
Relevance for magazine media:
- Europe’s magazine media are facing a challenging time adapting their businesses to the digital world, which requires a lot of innovation and investment power. In order to provide European readers with reliable and quality journalism not just in print but also on all types of devices, magazine publishers need to benefit from the most appropriate business conditions. This requires notably fair competition as well as more transparency in the digital world.
- The current reality is that the many publishers now initiating new paid-for solutions are faced with technological giants that may want to control the various dimensions of content distribution such as price setting, as well as their valued, direct relationships with readers.
- The outcome of the Commission investigation, which has been requested by different stakeholders, could have consequences for the online businesses of magazine publishers in Europe as it could impact the business practices of the big online players, thus modifying the digital landscape as we know it today and opening opportunities for smaller digital actors.
- The evolution of market practices and the intervention of competition authorities where necessary should prevent the gatekeeping or bottleneck effects that could hamper the development of attractive and sustainable content offers online.
Further information
- The Berlin Declaration on the future of the digital press : www.berlindeclaration.eu
- EU Press Release
- Contact person: Max Abendroth – Executive Director –max.abendroth@magazinemedia.eu - +32 (0)2 536 0604
d) European Contract Law Initiative
The initiative:
- Upcoming Commission proposal for an optional legislative instrument on European Contract Law.
Relevance for magazine media:
- The Commission intends to propose a legal instrument on European Contract Law that is “voluntary and optional”, which “does not replace existing national contract law, but that would exist alongside it.”
- It appears that having the option of such a second regime in Member States would result in a disproportionate burden – both financial and administrative – on businesses having to implement two different systems. At the same time consumers would also be confused and need guidance on which regime they should choose while concluding contracts.
- EMMA believes that while some sort of guidance could potentially be useful, any legislative action in this area would be unsuitable. Before deciding on which steps are the most appropriate, a proper impact assessment is crucial.
Further information
- Commission Green Paper (COM(2010)348)
- Speech by Commissioner Reding “Towards a European Contract Law’ (June 2011)
- Contact person: Catherine Starkie – Senior Legal Adviser – catherine.starkie@magazinemedia.eu - +32 (0)2 536 0602
The initiative:
- Directive on Consumer Rights, which Member States will have to implement once it comes into force following its upcoming publication in the EU’s Official Journal.
Relevance for magazine media:
- The Directive affects the subscriptions models of Europe’s magazine media and their obligations towards consumers.
- It is important that Member States avoid implementing a regime of burdensome confirmation requirements (e.g., which could have the effect of prohibiting contracts made over the telephone without written consent). This will make taking out subscriptions by phone and internet a longer and more complicated process for consumers and threaten publishing businesses;
- It is also important that when implementing the Directive that Member States ensure that publishers are able to be compensated for goods in the case of a consumer withdrawing from a contract (as these cannot be resold due to their perishable and temporary nature).
Further information
- The final text of the Consumer Rights Directive is to be given final approval by the Council on 10 October, following which it will be published in the Official Journal.
- European Parliament final report amending the Commission proposal for the Consumer Rights Directive.
- Contact person: Catherine Starkie – Senior Legal Adviser – catherine.starkie@magazinemedia.eu - +32 (0)2 536 0602