SINGAPORE UPDATING MEDIA MARKET CONDUCT CODE

UNCLAS SINGAPORE 000654 SIPDIS STATE FOR AMBASSADOR GROSS STATE PASS USTR FOR DAUSTR JJENSEN JUSTICE FOR SCHEMTOB SIPDIS E.O. 12958: N/A TAGS: ECPS EINT ECON ETRD EINV SN SUBJECT: SINGAPORE UPDATING MEDIA MARKET CONDUCT CODE ¶1. Singapore's Media Development Authority (MDA) plans to extend its regulatory reach beyond traditional broadcasting and print media to encompass new and emerging technologies that are redefining the wider info-communications sector. The proposed changes are part of MDA's first triennial review of the Code of Practice for Market Conduct in the Provision of Mass Media Services, which MDA began implementing in 2003 in an effort to liberalize the print and free-to-air broadcast market. MDA is seeking public comments on draft revisions to the code. Under consideration are amendments to address the growing convergence of media and telecommunications in applications such as Internet protocol television (IPTV) and to encourage more competition. ¶2. Among its new provisions, the code would expand the scope of MDA's regulation to cover the entire media industry, including broadcasting, film, print, and other sectors as determined by the Ministry of Information, Communications, and the Arts (MICA). The existing code applies to only four distinct categories: Free-to-Air TV, Pay-TV, radio, and newspaper publishing services. ¶3. Competition-related enhancements include prohibitions against media service providers "unreasonably" using an affiliate's relative market power in a media or non-media market to engage in practices such as predatory pricing. These provisions largely mirror those found in Singapore's 2005 Competition Act, which does not cover sectors like media where separate (and sometimes less rigorous) competition regulation already exists. Some industry representatives have expressed concerns that the expanded code will result in confusing, cross-sectoral overlaps with areas currently covered by the Competition Act or by another sector's code. One law firm that advises the GOS on implementation of the Competition Act has downplayed this potential problem, arguing that the Competition Act only applies to areas not otherwise covered by specific, standalone competition regulation. ¶4. The revised code would also use a market-based rather than an entities-based approach to designate dominant and non-dominant media service providers. MDA proposes a definition similar the Competition Act's that uses 60 percent of the respective market share as the threshold for dominance. Dominance could be established below this level if MDA determines that other relevant media market participants occupy a considerably weaker position. Among their obligations, dominant firms would be required to provide advertising capacity to other mass media service companies based on non-discriminatory prices, terms, and conditions. ¶5. MDA is seeking public comments on the proposed revisions through May 7, 2007; it expects to begin implementation before the end of the year. Relevant documents may be viewed on MDA's website at www.mda.gov.sg under "Policies and Regulations." Comments should be submitted by post or email to: Ms. Ling Pek Ling Director (Media Policy) Media Development Authority 140 Hill Street #04-01 MICA Building Singapore 179369 Fax: 65-6336 5560 Email: MDA_ROMC_Comments@mda.gov.sg Comment -------------- ¶6. Singapore began implementing the Competition Act in 2005 as part of its obligations under our bilateral FTA. Although we agreed to initial carve-outs for sectors such as telecommunications and energy, in addition to media, Singapore has committed to eventually extending the Act to all parts of its economy. Singapore's efforts to update the media industry's competition code and to align its provisions more closely with those in the Competition Act may constitute a step in the right direction. However, we remain concerned that multiple regulators may issue conflicting decisions that would affect firms operating in different sectors (e.g., media and telecommunications). We will monitor how well the GOS handles this challenge and continue to encourage it to adopt a single, uniform competition code sooner rather than later. FERGIN