SPECTRUM

Av. HAKAN HANLI
Ankara ve Brüksel Baroları Üyesi Uluslararası ve
Avrupa Ticaret Hukuku Uzmanı
Attorney at the Ankara & Brussels Bars International & European Business Law


"OLYMPIAD-EUROPEAN SPORT BROADCASTING EXCLUSIVE RIGHTS & EUROPEAN COMPETITION LAW"


Introduction: 'EU Sport Broadcasting Industry - European Broadcasting Union (EBU)' The acquisition of exclusive sports broadcasting rights is the main broadcasting issue in the Europe and in the World. In this highly competitive industry, broadcasters attempt to attract maximum audiences. They do so by offering exclusive coverage of a given sport event.

Sponsors and advertisers pay broadcasters more to advertise their products when they believe larger audiences will, in fact, watch an event. This belief, in turn, propels broadcasters to pay more for the right to be the exclusive broadcaster of a given event.

II. Background of the European Sport Broadcasting

1. European Broadcasting Sport Events: 'Advertising'

a. Competition : Major sports events are among the programs that attract the most viewers. Examples include the World & European Cups & the Olympics. There is heavy competition to be the exclusive broadcaster of sport events in a given geographical area. Because, broadcasters want to attract the advertising euros that flow from large viewing audiences. The broadcasting of sport events achieve high figures for viewers with strong buying power, particularly with sixteen to sixty year-old men and women. This target audience is essential for advertisers, because it is a readily identifiable group not easily reached by other programs.

As a result, the demand to advertise on sport events broadcasts has increased, as has the competition for the television & radio right to broadcast those events.

The right to broadcast sport events is granted usually for a given territory, per country, on an exclusive basis. Broadcasters consider exclusivity necessary in order to guarantee the value of a given sports program.

b. The value consideration is in terms of the number of viewers and the amount of advertising euros an event attracts. A sport event's organizer initially owns the broadcasting rights to a given event. The organizer controls access to the premises where the event occurs.

c. Exclusivity: It usually admits only one host broadcaster (i.e. the broadcaster in the country where the event takes place) to produce the television signal. In this way, the organizer controls the broadcasting of the event and guarantees exclusivity. The host broadcaster then must secure broadcast rights from the event organizer to televise the event within its own national territory.

d. Licence : Broadcasters typically try to secure similar exclusive rights to broadcast events within their respective national territories.

They do so either from the host broadcaster or some other owner of the television rights. These rights are either in the form of a license to exploit the material produced by the host broadcaster or an assignment of all rights. In an assignment, the host retains the ability to be the exclusive broadcaster of the event in its own national territory.

Nowadays, organizers have recognized the increased competition for the broadcast rights and, in turn, have increased the broadcast fees. For example, the fees paid in the EU for the right to broadcast the Olympics rose from 100 million Euro for the summer 1992 Barcelona Games to 300 million Euro for the summer 1996 Atlanta Games.

These amounts skyrocketed to 3.5 billion Euros or more for the 2000 Sydney & coming Olympic Games.

OLYMPIAD Games XXVIII (From the 13th to 29th August 2004) Greece was the birthplace of the ancient Olympic Games. The first modern Olympic Games were held in Athens in 1896. In 2004, the Olympic Games will return to their origins when Athens hosts the Games of the XXVIII Olympiad (in 2008 in Beijing).

e. International sport rights agencies also have emerged as players in this game. Sport event organizers maximize revenue by selling broadcast rights for many territories in one bundle to an agency, which then unbundled the rights by selling them to individual broadcasters for the exclusive right to broadcast in their respective national territories.

2. European Broadcasting Union (EBU) & Eurovision System: 'Reciprocity'

The EBU is one of the most important EU players in the broadcasting world. Created in 1950, it is a non-profit-making trade association of public broadcasters, and Eurovision, its system of joint program acquisition and reciprocal exchange of signals. It aims to promote radio and television exchange among its members by all possible means. Because, the EBU has no commercial goal, it does not admit purely commercial broadcasters as members.

Its active members are public mission broadcasters who must satisfy obligations set by national law and practice regarding their programs and audience coverage. Its associate members are broadcasters who otherwise satisfy all of the EBU membership requirements but operate outside of the EBU broadcast area.

EBU members are obligated to cover an entire national population and, in fact, actually must cover a substantial part thereof, while using their best efforts to achieve full coverage. They must provide varied and balanced programming for all sections of the population, including a fair share of programs catering to special (minority) interests, irrespective of the ratio of program cost to audience size.

Eurovision constitutes the main framework for the joint acquisition and cost sharing and the exchange of programs among active members. This system, created in 1954, is organized and coordinated by the EBU. EBU members compete individually against each other and/or private broadcasters for national sport events.

Therefore, Eurovision applies only to international sports events :

a. The Eurovision system is based on 'understanding' that members offer to the other members, on the basis of reciprocity, their news coverage of important events as well as their coverage of current affairs, sport events, and cultural events that are of potential interest to other members.

b. The Eurovision system is based on 'reciprocity'. Whenever one member covers a sport event occurring in its own national territory, it offers coverage free of charge to all other members on the understanding that it will receive corresponding services from other members when events take place in their respective countries.

c. EBU members jointly acquire television rights to an event, and then 'share the rights' and the related fees among themselves. Whenever EBU members from two or more countries want to broadcast a given sport event, they request coordination from the EBU.

A member in whose country the event occurs, or the EBU itself, then conducts negotiations (on behalf of the interested EBU member(s)) with the event's organizer. EBU members may negotiate separately only after joint negotiations fail.

Members who compete with each other for audiences have to agree among themselves on the procedure for attributing priority to one of them. For example, they could agree to alternate transmission of an event. If the parties do not reach agreement, they obtain non-exclusive rights to broadcast the event in their same national territory.

d. Eurovision & Third party non-members: The EBU statutes provide for contractual access to Eurovision for third party non-members. Non-members may gain access for live transmission if no EBU member in the country concerned has reserved its own live transmission of a sport event.

When an EBU member does opt to broadcast an event live in the country concerned, non-members may gain access for deferred transmission at least one hour after the conclusion of an event. The third party and the EBU negotiate the access fees for both the broadcast right and the television signal routing right. If a dispute develops over the access fee, the parties may request arbitration by an independent expert, or, if both parties agree, by three experts.

3. The European Union Competition Law: 'Articles 85 & 86'

Treaty of Rome, Article 3(f) states that 'one of the activities of the European Community is the institution of a system ensuring that competition in the Community is not distorted'.
The fundamental rules on competition are contained in Articles 85 and 86.

Article 85 provides the basis for the following analysis of how EC competition laws reconcile with the granting of exclusive rights to broadcast sports events.

Article 85 prohibits all agreements that may affect trade between the Member States and have as their object or effect the prevention, restriction, or distortion of competition within the common market. Any such agreements are automatically void, although there are certain exceptions to this general rule.

Article 85 prohibitions become inapplicable to an agreement when the agreement otherwise contributes to the promotion of economic progress and only imposes restrictions indispensable to the attainment of the agreement's objectives.

European Council Regulation 17 grants the Commission the power to implement Articles 85 and 86 and, therefore, to grant 85(3) exemptions. Direct parties to an agreement or those persons who otherwise have a sufficient interest may file a complaint to the Commission.

The EC has a number of options: It can dismiss the complaint, provide a negative clearance or comfort letter, or make an examination and decision regarding exemption. Should the Commission decide to grant an exemption, it may issue either an individual or group exemption.

III. EC Competition 'Assessments'

Public and Private Broadcasters: 'Struggling Competition'

The exclusive broadcasting of sport events should be considered in the context of the ongoing struggle between public and private broadcasters. In the past, public television companies dominated the market. There are now, however, many private broadcasters who compete for exclusive rights to broadcast sport events. These companies developed in part through a combination of the deregulation of the television broadcasting industry in some Member States and the introduction of satellite-to-cable and direct satellite television.

The private broadcasters are financed mainly through advertisers and subscription fees. The public broadcasters receive financing mainly through a license fee and some advertisement revenue, subject to restrictions like revenue ceilings and maximum advertising spots per day. In 1950, when the EBU formed, public sector organizations entrusted with the operation of a public service provided most radio and television broadcasting services in Europe. These organizations enjoyed a seeming monopoly over the broadcasting of all television programs, including sport events.

In 1980s, private broadcasters emerged to capitalize on the rising popularity of sport and the related market for viewers and advertising revenue. In Europe, these private broadcasters include a number of all-sport broadcasters, such as EuroSport, Sky Sports, etc... Nowadays, the broadcasting industry is in a state of transition, with private broadcasters expanding their market activities and gaining significant audience shares. They provide technical innovations, offer broader choices for viewers, and create competition that benefits viewers, advertisers, and sport event organizers. As their audience share increases, these commercial broadcasters prove formidable competitors to the traditional public broadcasters in both the advertisement and program procurement markets. The public EBU members compete sometimes at a growing disadvantage against commercial channels, which are in some cases backed by powerful media conglomerates. The EBU members face various constraints arising from their public mission that the private broadcasters do not encounter.

In particular, members face limitations on sponsorship and advertising that often hamper their ability to buy and exploit programs in a commercially viable way. The public and the private broadcasters take different approaches to the broadcasting of sports.

Public broadcasters, by virtue of their public mission, cater to minority, or less popular, sports in addition to major sports events. They tend to cover a broader range of sports events and do so from an event's beginning to end, irrespective of costs and revenue considerations.

In fact, purely commercial broadcasters, with the exception of all-sports channels, are more interested in mass-appeal sports events that attract advertisers and persuade viewers to subscribe to their services. Furthermore, they care less about sport events that require expensive production efforts relative to the broadcasting time and advertisement revenue generated from such an event.

2.EU Competition Law: 'Joint-Acquisition & Distortion'Eurovision's object and effect is greatly to restrict, if not eliminate, competition between EBU members, by allowing for the joint negotiation, acquisition, and sharing of broadcast rights and the exchange of programs, EBU members agree to joint acquisition and sharing of signals instead of competing against each other on an open market for the right to broadcast in a given area.

Eurovision enables EBU members to strengthen their individual market positions to the disadvantage of their competitors. Without Eurovision, EBU members would have less market power and, consequently, less ability to secure exclusive broadcast rights for major sports events.

This is a result of the sport broadcasting industry developing into a rich person's game where broadcasters pay big bucks because they perceive advertisers and viewers as likely to do the same.

Eurovision distorts competition among EBU members and between EBU members and private broadcasters who do not share its rationalization and cost savings. Its effect is to exclude private broadcasters unaffiliated with the EBU from the reciprocal benefits of the joint acquisition and program exchange.

3. EC Competition Law : Article 85(3); 'Individual Exemption'

European Commission concluded that the Eurovision system violated Article 85(1), but issued an 85(3) exemption. It reasoned that Eurovision reduced transaction costs, benefited smaller members, enabled coordination by different channels within countries, and facilitated exchange of programs between countries. In response, certain private broadcasters requested that the Court of First Instance annul the Eurovision decision.

An Analysis of Eurovision: The ECJ should perform a four-factor test applied in Article 85(3) analyses and grant an individual exemption for the Eurovision arrangement: The ECJ should ask and answer four positive & negative questions during its review. If the ECJ answers 'yes' to the first two questions and 'no' to the last two.

IV. EU NonĞMembers Situation

Eurovision does not totally exclude non-members. In fact, the EBU, subsequent to the Eurovision decision, greatly strengthened third party access. Now, non-members may obtain a live transmission if no EBU member broadcasts an event.

They may obtain a deferred transmission if an EBU member does broadcast an event live. In this way, non-members may gain some access even to those events that the EBU has exclusive rights.

V. EU CandidateĞMembers: 'TURKEY situation'

1.State Monopoly to Liberalisation: The monopoly of the Turkish Radio and Television Corporation (TRT) on broadcasts stipulated in the Constitution was broken after 1990 by many radio and television channels which started its broadcasting illegally both at home and abroad. 

After the chaos, which resulted, in radio and television broadcasts in 1990, legal regulations were sought and the amendment of Article 133 in the Constitution which called for an impartial state broadcasting service was put on the agenda. With the enactment of Law No.3913 on 8 July 1993, Article 133 in the Constitution was amended as follows: "Radio and television channels may be freely established and managed within the stipulations to be regulated by law. The independence and the impartiality of the only radio and television institution established by the state as a public corporate body and news agencies aided as public corporate bodies are essential." 

In line with the new Article 133, the monopoly of TRT on television broadcasts as the sole television institution which began operating in 1964 was broken. Thus, the violation of the Constitution by private radio stations and television networks from 1990 onwards was considered invalid. 

The High Audio-Visual Board (RTÜK) was founded on April 13, 1994, under Law No.3984, which determines the regulations to which private radio stations and TV channels and the TRT are required to abide by. 

Functions and conduct of the Radio and Television Supreme Council: Planning, Assignment of Channels, Frequencies and Bands (Permits & licenses), Establishment and Control of Radio and TV Transmitting Stations and Application of Sanctions, Encouragement of Channels to Operate on a Time-Shift Basis, Regulations compliance with the European Convention on Trans-Frontier Television, Surveys & Representation on the International & European platforms. 

2. Audio-Visual Policy: The law adopted in August 2002, a regulation on the 'Language of Radio and Television Broadcasts', entered into force in December 2002. According to the new regulation, broadcasts in different languages and dialects traditionally spoken by Turkish citizens can be made only by the State Radio and Television Company TRT.

The regulation provides for the conclusion of a protocol between the High Audio-Visual Board (RTÜK) and TRT concerning broadcasts in other languages.

According to the regulation, TRT is mandated to carry out nation-wide market research to identify the demands and needs of the different communities.

Turkey is trying to align its legislation with the European acquis on television. RTÜK is working on the new implementing regulations. EC Television without Frontiers Directive and Trans-frontier Television Convention will be taken into account, as the main references in the harmonisation process. This concerns, in particular, issues which have not been properly addressed yet, such as the protection of minors, tele-shopping, advertising and the promotion of European audio-visual works.

Conclusion: ' Pay-for-Play World '

The nature of the sport broadcasting industry in the EU has developed rapidly into a pay-for-play world. In the past, public broadcasters dominated the market and secured exclusive rights to events with the goal of encouraging interest in sports.

Nowadays, private broadcasters have entered the ring with the goal of profiting from the rising popularity of sports and the related popularity of sport on TV & PC screens.

Event organizers have reacted to the growing popularity and interest (from both fans and broadcasters) by charging more money for the exclusive right to broadcast a given event.

The EBU and Eurovision technically may restrain trade, but the ECJ should grant the arrangement an Article 85(3) individual exemption. Eurovision enables EBU members who otherwise would be unable to be players in the rising market for exclusive broadcast rights to compete with private broadcasters who have more resources and unlimited program discretion.

The private broadcasters remain formidable competitors, with each other and with EBU members, because they have extensive financial resources. In effect, Eurovision minimally alters the conditions but still ensures that the game plays on, with teams competing on a more level playing field.




OLİMPİYAT-AVRUPA SPOR YAYINI ÖZEL HAKLARI & AVRUPA REKABET YASASI


I.Giriş - 'AB Spor Yayınları Endüstrisi - Avrupa Yayın Birliği (EBU)' Özel spor yayınları haklarının elde edilmesi Avrupa'da ve Dünya'daki ana yayıncılık konularından biridir. Bu son derece rekabetçi piyasada, yayıncılar en fazla seyirciyi çekmeye çalışmaktadırlar.

II.Avrupa Spor Yayınının Geçmişi 1.Avrupa Yayın Spor Olayları: 'Reklamcılık'.

a. Rekabet: Dünya ve Avrupa Kupası, Olimpiyatlar gibi önemli spor olayları, en çok izleyiciyi çekenlerin arasında bulunmaktadır. Bu alanda büyük bir rekabet vardır. Spor olaylarının yayınlanması yaşları onaltı ile altmış arasında değişen erkek ve kadınların oluşturduğu güçlü satınalma gücüne sahip izleyicileri çekmektedir.

b. Değerlendirme izleyici sayısı ve bir olayın çektiği reklamın euro değeri üzerinden düşünülmektedir.

c. Özgünlük: Genelde spor olayının yaşandığı ülkedeki tek bir televizyon kanalı sinyal oluşturma hakkına sahip olur ve böylece de özgünlüğünü garanti altına alır.

d. İzin: Yayıncılar genelde kendi ülkeleri içinde benzer özgünlük haklarını elde etmeye çalışırlar. Bu haklar ya yerel yayıncı tarafından üretilen yayının işletim hakkı ya da bütün hakların devri şeklindedir. Günümüzde, organizatörler yayıncılık hakları üzerindeki artan rekabetin farkındalar. Bunun sonucu olarak da yayın ücretlerini arttırmış durumdalar. Örneğin Olimpiyat Oyunları'nın yayın fiyatı AB tarafından 1992 Barselona Oyunları'nda 100 milyon euro iken 1996 Atlanta Oyunlarında 300 milyon euro'ya yükseltilmişti. Bu rakkam 2000 Sidney Oyunlarında 3,5 milyar euro'ya fırlamıştır.

e. Uluslararası spor hakları ajansları da bu oyuna oyuncu gibi katılmış bulunuyorlar.

2. Avrupa Yayın Birliği (EBU) 6 Eurovizyon Sistemi: 'Karşılıklılık' EBU yayıncılık dünyasının en önemli AB oyuncularından biridir. 1950 yılında kurulmuştur. Kar amacı gütmeyen bir halk yayıncıları birliğidir. Üyeleri arasında mümkün olan her şekilde radyo ve televizyon sinyali alışverişini sağlamayı amaçlamaktadır. Aktif üyeleri kamu görevindeki yayıncılardır. Ortak üyeleri EBU'nun üyelik gereklerinin tamamını yerine getiren ama EBU sınırları dışında çalışan yayıncılardır. EBU üyeleri bütün bir ulusa yayın yapabilmelidirler. Halkın her kesimi için farklı ve dengeli programlar sunmak zorundadırlar. 1954 yılında kurulan Eurovizyon sistemi EBU tarafından organize edilmekte ve yönetilmektedir. Bu yüzden Eurovizyon sadece uluslararası spor olaylarında devreye girmektedir:

a. Eurovizyon sistemi üyelerinin birbirlerine karşı gösterdikleri 'anlayış', karşılıklılık, önemli olaylar üstündeki haber kapsamları üstüne kurulmuştur.

b. Eurovizyon sistemi 'karşılıklılık' sistemi üstüne kurulmuştur.

c. EBU üyeleri bir olay üstündeki televizyon haklarını ortak olarak elde ederler ve sonra da hakları ve ilgili masrafları kendi aralarında paylaşırlar.

d. Eurovizyon & üye olmayan üçüncü şahıslar: EBU üye olayanların anlaşma çerçevesinde erişim hakkı kazanmasına imkan tanımaktadır.

3. Avrupa Birliği Rekabet Yasası: 'Madde 85 ve 86'

Bu maddeler, Üye Ülkeler arasındaki ticareti etkileyebilecek her türlü anlaşmayı yasaklamakta ve gerekli düznelemeleri sağlamaktadır.

III.AT Rekabet 'Tahakkuku'

1.kamu ve özel yayıncılar 'rekabetle mücadele' Spor olaylarının özgün yayını kamu ve özel yayın kuruluşları arasında bir rekabet mücadelesi olarak ele alınmalıdır. Özle yayın kuruluşları artık spor olaylarının yayın haklarını elde edebilmek için rekabete girmektedirler. Özel yayın kuruluşları genel olarak reklam kuruluşları ve üyelik ücretleriyle desteklenmektedirler. Kamu yayın kuruluşları ise maddi kaynaklarını izinlerle ve bazı reklamlarla elde etmektedirler. 1980'li yıllarda, özel yayın kuruluşları sporun artan popülerliği ve izleyiciler ve reklamcılar için bununla ilgili pazarlar üstüne yatırım yapmaya başladılar. Avrupa'da bu özel yayıncılar arasında EuroSport'u, Sky Sport'u ve diğerlerini sayabiliriz.

2. AT Rekabet Yasası: 'Ortak Kazanç & Bozukluk'

EBU üyeleri, açık bir pazarda yayın hakları için birbirleriyle rekabete girmek yerine, ortak kazanç ve sinyalleri paylaşma konusunda anlaşmaya varmış bulunuyorlar.

Eurovizyon EBU üyelerinin şahsi pazar pozisyonlarını diğer rakiplerinin aleyhine olacak şekilde sağlamlaştırmalarına yardımcı oluyor.

3.AT Rekabet Yasası : Madde 85 (3); ' Şahsi İstisna'

Avrupa Komisyonu Eurovizyon sisteminin Madde 85(1)'i ihlal ettiğine karar verdi ama bir istisna maddedi olan 85(3)ü oluşturdu. Yine de bazı özel yayın kuruluşları Asliye Hukuk Mahkemesine başvurarak Eurovizyonun iptalini istediler.

IV.AB Üyesi olunmayan durumlar

Eurovizyon üye olmayan ülkeleri tamamen dışarda tutmamaktadır. Artık üye olmayan ülkeler eğer bir EBU üyesi olayı canlı olarak yayınlamıyorsa, canlı yayın hakkını alabilirler. Eğer bir EBU üyesi olayı canlı olarak yayınlıyorsa , o zaman da tecilli yayın hakkını elde edebilirler.

V. AB Aday üyeleri: 'Türkiye'nin durumu'

1. Liberalizasyondaki Devlet Tekeli: TRT'nin tekeli 1990 sonrasında Anayasa'da yapılan değişikliklerle yayına başlayan çok sayıdaki özel radyo ve televizyon kuruluşu sayesinde ortadan kalktı.

2.Görsel- işitsel yayın politikası: 2002 yılının Ağustos ayında kabul edilen bir yasayla, 'Radyo Televizyon yayınlarındaki dil' düzenlemesi 2002 yılının Aralık ayında yürürlüğe girdi. Yasaya göre Türk vatandaşları tarafından konuşulan farklı diller ve diyalektlerde yayın yapma hakkı sadece TRT'ye verildi.

VI.Sonuç: 'Oyun dünyası için Ödeme'

AT'deki spor yayını endüstrisi hızla 'oyun dünyası için ödeme' şekline dönüştü.

Artık özel yayın kuruluşları spor olaylarının giderek artan popülaritesinden yararlanmak amacını güdüyorlar.

Özel yayın kuruluşları hem kendi aralarında hem de EBU üyeleri için mükemmel bir rakip oluyorlar, zira neredeyse sonsuz maddi kaynaklara sahipler.




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