Clarín Group, Argentina’s largest media conglomerate, announced plans Monday to divide its operations into six subsidiary companies, in compliance with the country’s Ley de Medios (Media Law). The anti-monopoly law was upheld by the Argentine Supreme Court last week after four years of legal disputes between Clarín and the federal government. Clarín representatives said the company had only agreed to implement the changes after the decision was “forced upon” them, but they did not rule out the possibility of appealing the decision to international tribunals.
Martín Sabbatella, president of the Autoridad Federal de Comunicación Audiovisual (Federal Audiovisual Communications Authority—AFSCA) and Argentina’s top broadcast regulator, welcomed the company’s decision to comply with the law and said his agency would review Clarín’s breakup proposal within 120 days. In the first meeting held between government representatives and Clarín executives since last week’s Supreme Court decision, Sabatella said he would ensure that the reform process causes the company “as little damage as possible.”
The Supreme Court said it found “no evidence in the case that there is a violation of freedom of expression derived from the law.” Nevertheless, the Court also informed the government that companies surrendering licenses under the new law must be duly compensated, with oversight from an independent regulatory authority and equal distribution of government subsidies. The law will reduce the number of radio and television licenses that a single company can hold, and pending government review of the company’s proposal, may require Clarín to sell one or more of its newly created subsidiaries.
Read about Argentina’s 2009 media reforms in the Fall 2013 issue of AQ, which focuses on freedom of expression.