Information Note on Legislative Changes Introduced by the Radio and Television Supreme Council

The Radio and Television Supreme Council (“Supreme Council”) introduced a number of provisions and amendments for the media sector in accordance with the below regulations published in the Official Gazette dated January 13, 2024, and numbered 32428.

i. Regulation Amending the Regulation on Administrative and Financial Conditions to be Complied with by Media Service Providers and Platform and Infrastructure Operators ("Administrative and Financial Conditions Regulation"),

ii. Regulation Amending the Regulation on the Presentation of Radio, Television, and OnDemand Broadcasts via the Internet ("Internet Regulation"),

iii. Regulation Amending the Cable Broadcasting Regulation of the Radio and Television Supreme Council ("Cable Broadcasting Regulation") and,

iv. Regulation Amending the Satellite Broadcasting Regulation of the Radio and Television Supreme Council ("Satellite Broadcasting Regulation").

These Regulations will enter into force as of the date of their publication.

You may find the significant amendments introduced under these legislative provisions briefly below.

I. Legislation and Amendments

1. Administrative and Financial Conditions Regulation

The following amendments made to the Administrative and Financial Conditions Regulation:

• By adding the term "internet" to the definitions of platform operator, radio broadcasting service, broadcasting license, and broadcasting medium, the scope of the relevant Regulation has been harmonized with internet broadcasting, in a manner including the internet broadcasting in practice. In addition, the definition of "corporate website" has been added to the relevant article of the Regulation titled Definitions, and accordingly, it has been made obligatory for media service providers to establish a website to promote their activities related to broadcasting services, and to notify the Supreme Council of their imprint, contact and address information, registered electronic mail address, name and contact information of the audience representative.
• It has been stated that the amount of paid-in capital cannot be less than TRY 50,000 in accordance with the Internet Regulation for media service providers applying for broadcasting licenses for Internet Radio and Television. However, it should be noted that pursuant to Presidential Decree No. 7887 published in the Official Gazette dated November 25, 2023, the minimum capital amount for joint stock companies to be established in 2024 is set at TRY 250,000.
• Media service providers have been given the opportunity to appoint the editor-in-chief or persons with similar titles and duties as the responsible manager, provided that it is clearly stated in the board of directors' resolution that they hold the title of responsible manager.
• The media service providers that took over a broadcasting license other than terrestrial broadcasting licenses are obliged to provide the Supreme Council with a cash guarantee or a letter of guarantee in the amount of the license fee corresponding to the remaining license period and for the duration of the license, in cases where the fee for the transferred broadcasting license is paid in installments.
• The term "bankruptcy of the media service provider" has been removed and it has been stipulated that the broadcasting license will be revoked only in the event of the cease of its legal personality or the revocation of its broadcasting license by the Court.
• It is regulated that applications for the registration of the same or indistinguishably similar logo and call sign used by a media service provider whose broadcasting license has been revoked as a result of an administrative sanction imposed by the Supreme Council, will be rejected.

2. Internet Regulation

As per the amendments made in the Internet Regulation:

• If the organizations applying for an internet broadcasting license and/or broadcast transmission authorization declare that they have started to provide broadcasting services on the internet during their application, they are obliged to pay the broadcasting license fee corresponding to 3 (three) months together with a letter of undertaking that they will complete the application procedures.

On the other hand, in case the organization fails to submit the aforementioned letter of undertaking within 72 (seventy-two) hours from the date of application and fails to pay the broadcast license fee corresponding to (3) three months in advance, fails to pay the broadcast license fee corresponding to an additional (3) three months in case the procedures for granting an internet broadcast license cannot be completed within the specified three-month period, or fails to complete the broadcast license application procedures by not submitting the information and documents requested by the Supreme Council in due time and continues its broadcasts; the sanctions will be imposed on the relevant organization broadcasting without a license.

• As per the aforementioned regulation, media service providers that will broadcast on the internet medium are given the opportunity to broadcast on the internet without waiting for them to obtain a license, provided that the relevant conditions are met during the license acquisition process. The obligation of media service providers that provide broadcasting services to subscribers and/or users for a fee and through conditional access, to deposit five per thousand of their annual net sales to the Supreme Council by April of the relevant year has been changed to July. Moreover, the bank letters of guarantee that can be submitted to the Supreme Council for the remaining license fee, provided that the organizations wishing to pay the broadcasting license fee in installments pay at least one installment before the issuance of the license certificate, similar to the processes for obtaining satellite and cable broadcasting licenses, can be replaced with a new letter of guarantee upon the request of the i organization, provided that (3) three years have elapsed since the issuance of the broadcasting license, the letter of guarantee submitted covers the entire amount of the remaining license fee and the validity period corresponds to the expiry date of the license period.
• Internet platform operators will continue to accrue broadcast transmission authorization fees until their broadcast transmission authorization is revoked. As a result of the application made to the Supreme Council, the Internet broadcast transmission authorization fees received from the Internet broadcast platform operator organizations whose broadcast transmission authorization has been revoked will be refunded to them upon their written request by calculating the remaining broadcast transmission authorization period as of the date of notification of the Supreme Council's decision.

3. Cable Broadcasting Regulation and Satellite Broadcasting Regulation

Similar amendments made both to the Cable Broadcasting Regulation and Satellite Broadcasting Regulation in parallel with each other:

• It has been previously regulated that the broadcasting license fee received from the organizations whose satellite and cable broadcasting licenses are revoked will not be refunded. Additionally, as per the amendment, the unpaid installments of the license fee will become due and payable upon the notification of the decision to revoke the broadcasting license to the organization. On the other hand, in the event that the broadcasting licenses of the organizations that cannot provide satellite broadcasting services due to force majeure or whose reasons for cancellation of their licenses to be accepted by the Supreme Council, the broadcasting license fees will be refunded to them by the number of days (in fractions) by calculating the remaining license period as of the date of notification of the Supreme Council's decision.
• As a result of the positive evaluation of the request for cable and satellite broadcasting license or broadcast transmission authorization by the Supreme Council, the organizations are obliged to request a technical audit within 6 (six) months from the date of notification of the Supreme Council's decision on this matter. Thus, media service providers are obliged to request an audit when it comes to license renewal.
• The letters of guarantee that were submitted within the scope of the license application processes can be replaced with new letters of guarantee upon the request of the organization, provided that the conditions regulated in the Regulation are met.

II. Conclusion

These amendments introduced by the Radio and Television Supreme Council through the Regulations require changes in the technical standards and financial policies in the media sector. It is important for media service providers to closely follow and adapt to these changes, especially in fulfilling the commercial communication income declaration obligation, obtaining broadcasting licenses, paying license fees, and license cancellations.