Executive Regulations of the Media

On 16 February 2020, the Executive Regulations (the “ER”)[1] of the most recent Media Law was published, more than a year after its stipulated date of issuance and amidst recent structural changes to the state bureaucracy. The ER mainly reiterate many of the law’s provisions, particularly in terms of procedural requirements for the establishment and work of the media and press, adding a handful of complementary details. Most notably, the ER, which went into effect on 17 February 2020, attend to the procedures for establishing and publishing or operating newspapers, media outlets, and websites;[2] disclosure requirements; the establishment of subsidiary companies by the press and media; taxation regulations connected to advertisements in the press and media; regulations related to the loss of citizenship and the disposal of shares; and a template for work contracts. Background Over the past few years, there has been heightened regulatory focus on the media and news industries in Egypt. A new Media Law No. 180 of 2018[3] was issued in August 2018 to regulate the press, media, and the Supreme Council for Media Regulation (“SCMR”). It stipulates the scope of work of media personnel and establishes the SCMR as a regulator, supervisor, investigator, and sanction-imposing entity. In comparison to previous media laws, the new Media Law expands the SCMR’s powers. It also stretches the definition of what constitutes a media outlet to include digital content and diminishes the role of press syndicates. In parallel to this, the House of Representatives also passed the National Press Authority Law[4] and the National Media Authority Law[5] in the same month. Then in March 2019, the SCMR issued a decision with the sanctions and administrative measures that it may impose on entities that are subject to the Media Law.[6] The council’s decision expands on some of the sanctionable acts provided under the law in a move that drew even more criticism to SCMR’s role following the overhaul of the media laws which took place. Most recently, a cabinet reshuffle took place in December 2019, and this saw the resurrection of a media ministry in the form of the Ministry of Information after over a five-year hiatus.

The Executive Regulations

1. Establishment and Publication/Operation of Press and Media Outlets

The ER largely repeat the provisions of the Media Law in relation to the establishment and publication or operation of the press and media outlets. However, they do specify the General Secretariat of the SCMR as the focal point in such procedures. Thus, those wishing to establish a newspaper must notify the SCMR’s General Secretariat using the relevant form and the General Secretariat is to record this in a registry created for this purpose before passing it on to the SCMR’s Newspaper Committee within a week of receiving it. Said committee is to examine the notification and submit a report on the matter to the SCMR within two weeks of receiving the request from the General Secretariat. As for printing and publishing newspapers, the ER require that newspapers print their paper-based issues only through licensed printing presses inside Egypt. The SCMR must be notified of the details of said presses; a copy of the contracts between the newspapers and the presses must be submitted to the SCMR; and these presses must be registered at the SCMR. Newspapers must also submit 20 copies of their print issues (as soon as they are printed) and a copy of their online issues (once a month) to the SCMR. The ER also add a provision regarding what makes an online newspaper ‘irregular’ in its issuance: failure to broadcast the online newspaper and update its contents within six months following the notification for establishment. As for media outlets, the General Secretariat of the SCMR is similarly the targeted body to receive requests for establishing or operating media outlets or websites and it is to create a registry for such requests before going through a similar process of passing the request to the relevant Licensing Committee at the SCMR within a week of receiving it for the latter to examine it and submit a report on the matter to the SCMR within 30 days of receiving the request from the General Secretariat. The ER also provide more details from those included in the law regarding the establishment and operation of media outlets. Most of these are somewhat akin to the regulations for establishing newspapers although they have not been clearly stated for media outlets in the law thus far. For instance, the ER include a more extended list of information and data that are required when requesting an outlet’s establishment or operation and the SCMR must approve any subsequent changes to these. The ER also include a provision on the possibility of appealing the SCMR’s licensing-related decision in an administrative court. As for the media’s operation, the ER repeat the law’s stipulation that a media outlet must broadcast within a year from the issuance of its license; however, the ER add that irregular broadcasting is to also be considered as lack of broadcasting. Notably, the ER also prohibit undertaking any recordings, photographs, or interviews in public places for disseminating them through the media outlet without the SCMR’s permit. They also require the SCMR’s approval before undertaking the service of content transmission, either in pre-recorded format or live, from inside Egypt to a media outlet or a website operating outside the country.

2. Disclosure Requirements

For the most part, the ER do not add much to what has been already specified in the Media Law in terms of disclosure requirements. However, they do state that newspaper corporations, media outlets and websites must publish their approved budgets and final accounts in two widespread daily newspapers while also listing a set of documents that must be submitted by these entities to the SCMR along with a copy of the budgets (for newspapers) or final accounts (for media outlets and websites) for the regulator’s examination.

3. Establishment of Subsidiaries

The ER briefly touch on the establishment of subsidiary companies. They allow newspaper and media corporations the option of establishing companies to undertake activities in publishing, advertising, printing, distributing, or importing and exporting, but after notifying the SCMR.

4. Taxation of Advertisements

The ER specify that all newspapers, media outlets and websites that advertise must notify the Egyptian Tax Authority of the advertisements that are displayed, published, or broadcast; this notification is to include the name and address of the advertiser, the date of the advertisement, the advertisement display/publication/broadcast fee, and the cost and duration of the advertisement. These entities must also keep a record of the names of the advertisers. Additionally, they must collect the stamp taxes due from the advertisers (who are natural persons) and submit them to the competent tax offices within two months from the date of an advertisement’s publication.

5. Ownership/Management Citizenship Regulations

The ER address cases wherein owners or majority shareholders of newspapers or media outlets (including media websites) lose their citizenship. As per the ER, natural or legal persons owning a newspaper/media outlet or owning a percentage of the shares that authorize them the right in management must, in the event of loss of Egyptian citizenship, dispose of said ownership or percentage of shares to a natural/legal person with Egyptian citizenship within six months from the date of loss of citizenship, after obtaining the SCMR’s written approval. Failure to do so within this time period entails the suspension of the newspaper’s issuance or the suspension of the media outlet’s license for six months, after which the newspaper or media outlet is no longer licensed to undertake its activities (unless the SCMR decides to extend the suspension period for another half a year).

6. Disposal of Shares

The Media Law stipulates that partial or full disposal of newspapers or media outlets to others and merging with other corporations may not occur without the SCMR’s written approval. The ER elaborate on this, adding that the SCMR’s prior written approval is also required before offering the newspaper’s or media outlet’s shares in the Egyptian Exchange or for private or public subscription. Failure to obtain the SCMR’s prior written approval deems the disposal null.

7. Work Contracts

Finally, the ER include a guiding template for work contracts to be used with employees of newspapers and media outlets.

Conclusion

The Executive Regulations of the Media Law serve their purpose of legislatively providing detailed instructions on the enforcement and implementation of the law. However, they specifically focus on the tasks and roles of the SCMR in regulating the media and news industries. As such, there still remains executive and regulatory ambiguities particularly with regards to the relations between the recently reinstated Ministry of Information on the one hand and the SCMR and the two other media regulatory bodies (namely the National Press Authority and the National Media Authority) on the other hand. Although this has not been the first time that the ministry has gone through a cycle of abolishment then reinstatement since its creation in 1952, the rationale reported behind the last abolishment in June 2014 was strengthening media freedom by replacing the ministry with more independent bodies;[7] this was because the ministry has “historically exerted powerful control over the media and was considered one of the most powerful political tools of the regime”.[8] Thus, given the recent events, both in legislative and executive terms, speculations abound with regards to the roles of supervision and regulation and the division of powers and tasks among these state bodies, with some reports even deeming the reinstatement of the ministry as unconstitutional although this has been refuted by others.[9]   [1] Prime Ministerial Decree No. 418/2020 enacting the Executive Regulations of Law No. 180/2018 Regulating Journalism, Media and the Supreme Media Council, Official Gazette, Issue No. 7 (bis) (c), 16 February 2020. [2] The Media Law defines ‘media outlets’ as TV channels (whether satellite or terrestrial) and radio stations (whether wired, wireless, or electronic). [3] Law No. 180/2018 Regulating Journalism, Media and the Supreme Media Council, Official Gazette, Issue No. 34 (bis) (h), 27 August 2018. [4] Law No. 179/2018 on the National Press Authority, Official Gazette, Issue No. 34 (bis) (d), 27 August 2018 [5] Law No. 178/2018 on the National Media Authority, Official Gazette, Issue No. 34 (bis) (c), 27 August 2018. [6] SCMR Decision No. 16/2019 with sanctions and administrative measures that may be imposed on entities that are subject to the Law Regulating the Press, Media, and the Supreme Council for Media Regulation issued by virtue of Law No. 180/2018, Egyptian Gazette, Issue No. 64 (cont.) (a), 18 March 2019. [7] UNESCO. (2013). Assessment of media development in Egypt based on UNESCO’s Media Development Indicators. [8] El-Issawi, F. (2016). Arab national media and political change: “Recording the transition”. Palgrave Macmillan. [9] El-Sheikh, S. (2019, December 28). The return of the information ministry will not impact the three media supervising bodies: Experts. Daily News Egypt, available through this link.