NBTC rules SLC did not violate measure
The broadcasting committee of the National Broadcasting and Telecommunications Commission (NBTC) has voted that the purchase by MAI-listed Solution Corner (1998) Plc or SLC of a 12.27% stake in SETlisted Nation Multimedia Group Plc (NMG) did not violate any digital TV-related rule.
Yesterday’s split decision saw two commissioners vote that SLC violated the rules, one that it did not and two abstained.
NMG vowed to file a lawsuit for malfeasance with the Administrative Court against the three commissioners who did not vote in its favour.
Adisak Limparungpata, chief executive of Nation Broadcasting Corporation (NBC), said the broadcasting panel’s decision distorted the good norms of broadcasting regulations.
“The result reflects the regulator’s poor legal and governance principles,” he said.
Commissioners Supinya Klangnarong and Tawatchai Jittrapanun voted that SLC clearly violated the NBTC’s auction rules by holding more than 10% in other digital TV companies in the same category. SLC is the parent company of Spring News TV, while NMG owns Nation TV via its subsidiary NBC.
The NBTC’s legal subcommittee released a report saying the auction rules must remain in effect for the SLC-NMG case.
The auction rules were written based on Sections 31 and 32 of the Broadcasting Act.
Commissioners Natee Sukonrat and Taweesak Ngamsanga abstained from voting, disagreeing with the subcommittee’s view since they believed the auction rules were designed only for the auction process.
Commissioner Peerapong Manakij said he saw SLC’s purchase of a 12.27% stake in NMG as compliant with NBTC rules because its shareholding did not mean it would control management of NMG. Controlling power requires a 25% stake in the company, according to the Broadcasting Act.
SLC chief executive Arak Ratboriharn yesterday filed a lawsuit against NMG executives over defamation, seeking 2.3 billion baht in compensation.
The vote sets a confusing precedent for media merger and acquisition and media dominance regulations, said Prof Pirongrong Ramasoota of Chulalongkorn University’s communication arts faculty.
“Media dominance is difficult to assess in our digital world, which leads to more fragmented information for consumers,” she said.
“In developed countries such as the US, regulations on media dominance were rarely invoked due to the proliferation of digital media.
“As the regulator, the NBTC must provide regulations that promote content diversity to encourage people to think differently.”