Singapore passes Bill requiring government approval for major media acquisitions
The new law will give the minister the power to order a structural separation of a regulated media entity as a “last resort”.
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SINGAPORE: Acquisitions of 30 per cent or more in key media entities will require approval from the Infocomm Media Development Authority (IMDA), among other changes under a Bill passed on Wednesday (May 6).
Amendments to the IMDA Act were passed in parliament to bring media regulation in line with the telecommunications sector.
Senior Minister of State for Digital Development and Information Tan Kiat How said authorities "care about who owns and controls" key media entities.
These entities include companies that publish a newspaper or operate under a broadcasting licence.
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“These are companies that shape the information environment for our citizens, especially in the age of AI and disinformation,” he said.
Under the new law, changes in ownership or control that allow a person to direct the actions of such entities will require IMDA's prior approval, including cases where a party acquires 30 per cent or more interest in a regulated media entity.
“The 30 per cent threshold in the Bill serves as a benchmark for when someone would presumably have control over the entity’s decisions and operations,” said Mr Tan.
With the change, IMDA approval will be needed if an entity that is not already regulated seeks to acquire 30 per cent or more of pay-TV operators such as SingNet or StarHub Cable Vision. Similar requirements already apply in the telecommunications sector.
“We are adopting this practice for the media sector,” Mr Tan said.
14:25 Min
The government is moving to broaden the Infocomm Media Development Authority’s (IMDA) oversight of ownership and control changes in the media sector. The regulator’s approval will be needed if anyone seeks to acquire 30 per cent or more of a “regulated person” - that is, a broadcasting licensee or holder of a newspaper permit. These are companies that shape the information environment for Singaporeans, especially in the age of AI and disinformation, said Senior Minister of State for Digital Development and Information Tan Kiat How in parliament on Wednesday (May 6). The move will align the regulatory framework for the media sector with that for the telecommunications sector. The bill would also empower IMDA to issue directions to maintain fair market conduct or safeguard consumers’ interests with transparent and reliable provision of media services. It also seeks to vest the power to order structural separation of a regulated person in the minister rather than IMDA. This step is meant as a last resort to eliminate barriers to competition created by the control of media resources or possession of significant market power.
POWER TO ORDER STRUCTURAL SEPARATION
The amendments also give IMDA greater powers to act quickly against harmful market behaviour, even where no rules have been formally breached.
“There may be instances where actions of licensees may result in outcomes that are detrimental to consumers or undermine fair market competition, despite there being no breach of the IMDA Act or the (Telecom and Media Competition) Code,” said Mr Tan.
He cited an example from the telecommunications sector, where providers abruptly change the price or terms of a subscription during a contractual lock-in period – a practice IMDA prohibited in 2015 through regulatory directions.
“IMDA does not have such powers to act in this manner in the media sector,” he said. “With this amendment, IMDA can take similar quick and targeted actions for the media sector through the issuance of directions.”
Other changes include giving IMDA the power to obtain specific information to support regulatory decisions, such as assessing ownership changes or determining whether a media service should be designated an essential resource.
The power to order structural separation of a regulated media entity will also be vested in the minister, rather than IMDA.
“We recognise that structural separation is a significant regulatory intervention, and it is appropriate that a decision of this gravity is taken at the ministerial level,” said Mr Tan.
Such powers would be used only as a "last resort" to address competition issues, he added, after other regulatory measures have been deemed ineffective and where the minister is satisfied that action is "in the public interest".
DEBATE OVER SCOPE OF NEW POWERS
The circumstances under which a minister could order the structural separation of a media entity drew questions from several MPs.
MP Yip Hon Weng (PAP-Yio Chu Kang) asked how the higher threshold of ministerial decision-making would be exercised and what considerations would guide such interventions, given the significance of such a move.
Mr Tan said structural separations would be "only imposed as a last resort and in exceptional cases", with strict legal limits. He outlined three conditions that must be met before a separation order can be issued.
The first is a "qualifying market condition" – for instance, where a media entity owns a resource so costly to replicate that it blocks competitors from entering the market, or holds significant market power such that competitors "cannot realistically provide media services without access to their services".
The second is that all other regulatory remedies by IMDA have been exhausted or are demonstrably inadequate. The third is that the minister must be independently satisfied that issuing the order is in the "public interest".
MP Fadli Fawzi (WP-Aljunied) suggested the minister should publicly disclose detailed reasoning before issuing a separation order, as such powers could "raise important questions about the concentration of decision-making authority within the hands of political office holders".
Mr Tan said: "We intend to inform the public where major regulatory decisions are made, given the impact on the industry and the media landscape, and to explain the key considerations."
MP Patrick Tay (PAP-Pioneer) asked whether workers would be supported in the event of major restructuring under the new law.
Mr Tan said the amendments focus on fair markets and consumer protection but that workers would not be left without support. He encouraged unionised companies undergoing major restructuring to engage NTUC and their unions early, and said the government would work with unions in the telecommunications and media sectors to support affected members.
Nominated MP Andre Low said he feared the Bill was designed to "foreclose a future where Singapore has a genuinely independent press, publications that owe their survival to the readers, not to the goodwill of any government", and urged the government to clarify if that was not its intent.
Mr Tan said the power to issue directions must be read in context: it is limited to maintaining fair market conduct, effective competition and consumer interest.
"Therefore, this power is neither a catch-all, nor unconstrained," he said.
The Workers' Party MP pressed further, asking whether the government would commit to not directing independent media companies subject to a separation order to transfer their business to a government-linked entity.
Mr Tan said the question contained "a lot of conjecture and hypothetical scenarios" and that such powers had not been exercised or even envisaged. The key considerations in exercising them, he said, would be whether a decision enhances competition and protects consumer interest.
Mr Low also raised concerns that the Bill could have a "chilling effect" and dent investor confidence in Singapore's media industry.
Mr Tan said the powers in the Bill sent a "broader signal" to the global investment community of Singapore's regulatory certainty and pro-business environment.
"It is not something to be taken lightly, and it's a reputation we husband, we shepherd, we safeguard," he said.
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