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Economic Issues in Media Regulation: An EU and US Perspective
Abstract
Changes in technology bring new challenges and opportunities for every industry, and the media industry is no different. Today people use mass media, and in particular the Internet, to participate in discussions and debate, to advertise and sell their products, to collect and store knowledge and to interact with the global community on the information super-highway. Given both the fast pace of innovation in the media industry and consumer demands for ever greater media content regulatory authorities are faced with challenging times. In this chapter, the authors examine how vertical mergers, vertical restraints, regulations, and competition policy are impacting on the European and American media industries. The authors examine how the internationalisation of the industry, increased merger activity, and the move towards cross media ownership are impacting on market concentration and diversity. The authors conclude that a balance must be struck between encouraging greater capital flows into the industry to help develop innovation, and the need to protect the public’s long term interest through ensuring competitive markets.
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