An arbitrary blow to the Spanish press

The National Competition Commission has imposed fines on two newspaper publishing firms, PRISA, publisher of EL PAÍS, and Zeta, of El Periódico de Catalunya, which had established an agreement for joint marketing of advertising space in the newspapers of both group. It has done so on the grounds that this agreement might alter the conditions of competition in the advertising market.

The proceedings were initiated by the CNC after both companies voluntarily notified the regulatory agency of the agreement, which was duly publicized, with the proviso that it was pending the agency's approval. In the course of the proceedings, the agency broadened the investigation to a previous agreement of 2002, now lapsed, for the joint marketing of advertising in the magazine supplements El País Semanal and El Dominical, regarding which there had been no complaints or objections on the part of competitors, advertising agencies or advertisers. Though the last of these agreements never entered into effect, because it was conditional upon the agency's authorization, the CNC has inexplicably imposed on Zeta a fine of 75,931 euros, and on Prisa one of 478,611 euros.

Both companies have filed appeals against the rulings and fines, on the grounds, among other reasons, of precedents set in previous actions of the regulatory agency, which were resolved without the application of any economic sanctions, and with the authority's acceptance of the conventional termination of the agreement reached by the two publishing firms.

The newspaper print industry is now in the midst of a deep slump, which has eliminated thousands of jobs, and placed a number of companies in difficulties, due to declining sales caused by the expansion of digital media, and due also to the overall shrinkage of advertising as a result of the economic recession. Pacts of this nature made between companies for the joint management of advertising space form part of logical and natural strategies to strengthen their market position ? something that is in no way damaging to advertisers, and which, besides, is essential to the maintenance of pluralism and the preservation of freedom of expression.

At a time of huge difficulties for the printed newspaper industry throughout the world, the least that might be asked of the regulatory agencies is that they not actively help to scuttle the ship of the print media. An agency that is there to be a watchdog for the preservation of competition cannot be guided by a rigid attitude that looks only to the letter of regulations and turns its back on reality ? the reality in this case being the difficulties of an industry crucial to the health of democracy.