Plans to cap RÚV advertising draw criticism

Proposed changes to the funding of state broadcaster RÚV have drawn criticism from Sýn and the Icelandic Chamber of Commerce, mbl.is reported.

Both say a proposed annual advertising cap of 2.8 billion krónur could encourage RÚV to undercut competitors and sell more advertising, rather than reduce its presence in the market. The Chamber wants RÚV removed from the advertising market altogether. Sýn proposes limiting the broadcaster’s advertising revenue to 10 per cent of turnover in the television and radio advertising market.

Sýn also criticised a lack of oversight. It said its own investigation found that RÚV had breached rules on the statutory limit for advertising during prime-time broadcasts 133 times between the start of 2020 and September 27 this year.

The Chamber warned that the proposed arrangement could make privately owned media more dependent on RÚV and public grants, weakening their independence.