The framework of media ownership is in Article 19. Seven subparagraphs determine both who may not obtain a licence and the limits of concentration.
(a) The Type of Company and the Single Licence Rule
A broadcasting licence is given to joint stock companies established under the provisions of the Turkish Commercial Code for the exclusive purpose of providing radio, television and on-demand broadcasting services. The same company may provide only one radio, one television and one on-demand broadcasting service.
| Rule | Content |
|---|---|
| Type of company | A joint stock company - established under the Turkish Commercial Code |
| Purpose | Exclusively to provide radio, television and on-demand broadcasting services |
| Number | The same company may provide one radio, one television and one on-demand broadcasting service |
| Articles of association | No provision contrary to this article may be inserted even after the licence is given; amendments are notified to the Supreme Council within one month |
(b) Those Who May Not Be Given a Licence
A broadcasting licence may not be given to political parties, trade unions, professional organisations, cooperatives, associations, societies, local administrations and companies established by them or in which they are directly or indirectly partners, or to capital market institutions and to the natural and legal persons that are their direct or indirect partners. Those bodies may not be direct or indirect partners in media service provider organisations.
(d) The Limit of Concentration
| Rule | Content |
|---|---|
| Number of partnerships | A natural or legal person may be a partner, directly or indirectly, in at most four organisations holding a terrestrial broadcasting licence |
| Revenue limit | Where there is a partnership in more than one organisation, the annual total commercial communication revenue may not exceed thirty per cent of the sector's total commercial communication revenue |
| If exceeded | Transfer of shares within the ninety-day period given by the Supreme Council |
| If not complied with | An administrative fine of four hundred thousand Turkish lira for each month in which the requirement is not fulfilled |
| Foundations | (Added sentence: 20/8/2016-6745/67) The founders of a foundation are deemed partners in a media service provider organisation for the purposes of applying this Law |
(e) The Kinship Rule
(f) Foreign Capital
| Rule | Content |
|---|---|
| Direct share limit | The total direct foreign capital share in an organisation may not exceed fifty per cent of the paid-up capital |
| Number of organisations | A foreign natural or legal person may be a direct partner in at most two organisations |
| In an indirect partnership | The chair of the board of directors, the deputy chair, the majority of the board of directors and the general manager of the broadcasting organisation must be citizens of the Republic of Turkey; the majority of votes at general meetings must be held by persons holding Turkish nationality |
| Articles of association | Provisions ensuring those matters are expressly stated |
Refusal of a Licence Request - Art. 19/2
(Added: 2/1/2017-Decree-Law No. 680/19; Enacted as it stood: 1/2/2018-7072/18) - The Supreme Council may refuse licence requests, on obtaining also the opinion of the institutions concerned, for reasons arising from the requirements of national security, the protection of public order and the public interest.
Company Transfers and Mergers - Art. 20
Share transfers are notified to the Supreme Council within thirty days; permission must be obtained from the Supreme Council before company transfer or merger transactions and notification must be made within thirty days after the transaction.
We cover the detail in the transfers guide.
Why These Limits?
Summary
Under Art. 19 of Law No. 6112 a broadcasting licence is given only to joint stock companies and the same company may provide one radio, one television and one on-demand broadcasting service. Political parties, trade unions, associations, local administrations and capital market institutions may not obtain a licence. A person may be a partner in at most four organisations holding a terrestrial broadcasting licence and the total commercial communication revenue may not exceed thirty per cent of the sector's. The direct foreign capital share may not exceed fifty per cent of the paid-up capital.