Poland President Andrzej Duda vetoes media bill seeking restrictions on foreign shares

On Monday, Poland's President Andrzej Duda announced his decision to veto a media bill that would require US company 'Discovery Inc.' to relinquish its controlling share in TVN, a Polish television network. For many, it was a victory for freedom of expression and media independence in a country where the nationalist government is challenging democratic norms. The veto was also likely to be applauded by Washington, which had been attempting to safeguard the country's largest investment.

President Duda stated that the bill was opposed by many Poles and that it would have harmed Poland's reputation as a corporate destination. He announced his decision at a press conference in Warsaw. "Contracts have to be kept. For us Poles it is a matter of honour," the President remarked. As per a report by Associated Press (AP), The lower house of parliament had recently passed the bill. It would have made it illegal for any non-European business to own more than a 49% share in Polish television or radio stations.

The bill's practical consequence would have targeted mainly one existing firm, Discovery Inc., forcing the American owner of TVN, Poland's largest private television network, to divest the bulk, if not all, of its Polish holdings. The legislation was promoted by Polish government leaders, who believed that it was critical for national security and sovereignty to ensure that no business outside of Europe should dominate companies that shape public opinion. Many Poles, however, saw the bill, which was supported by the ruling Law and Justice party, with which Duda is affiliated, as an attempt to silence TVN24, an all-news station, reported AP. 

The bill was in violation of Polish-US commercial deal: President Duda

It is pertinent to mention here that Discover Inc. had vowed to sue Poland in an international arbitration court. The network was first purchased for $2 billion by Scripps Networks Interactive before being sold to Discovery. It is the greatest American investment in Poland ever, and TVN is now valued at $3 billion, the report stated. According to President Duda, the bill would have violated the rules of a Polish-US commercial deal negotiated in the 1990s, and Poland may have faced billion-dollar penalties if he had approved it. Dauda further remarked that he agreed in principle that countries should limit foreign ownership of media organisations, citing legislation in place in many other democratic countries like the United States, France, and Germany.

(With inputs from AP)

Image: AP