The Spanish government seeks to put limits on institutional advertising in the media

MadridThe Spanish government is taking a step forward to limit institutional advertising in the media. The Council of Ministers this Tuesday is scheduled to approve in its first reading the preliminary draft of the law on institutional advertising which, among other things, will limit to 35% the advertising revenue from all public administrations that companies behind newspapers, television channels, or radio stations can receive, as reported by El Confidencial and confirmed by government sources to ARA.

The ministry piloting the norm is the Ministry of Public Function and Digital Transformation, under the leadership of Óscar López (PSOE), which has long been committed to advancing transparency regarding institutional advertising in the media, but also regarding who owns the media. In fact, the preliminary draft of the law to be approved this Tuesday will also include the obligation to make this ownership public.

Without knowing the fine print of the new law, it will be necessary to see how it fits with the register included in the draft law for the Improvement of Democratic Governance in Digital Services and Communication Media which was approved last year and remains in limbo in the Congress. This regulation already contemplates the creation of a public registry of communication media, which will depend on the National Commission of Markets and Competition (CNMC) and aims to provide transparent information about the ownership and institutional advertising of the media.

In the Democratic Action Plan that Pedro Sánchez presented in the summer of 2024, this reform was already included to "introduce criteria of transparency, proportionality, and non-discrimination" in the allocation of institutional advertising to the media. Through this, the Spanish government wants to prevent media outlets without economic viability from receiving public funds discretionarily.

At that time, the Spanish president proposed to the parliamentary groups to develop by law the European regulation on Media Freedom to improve the "transparency" of the media ecosystem, where La Moncloa believes a good part of the current political battle is being fought. At that time, Sánchez pointed to the need for reforms in the justice system, but also against "disinformation" and blamed some "pseudo-media" mainly linked to the far-right.

However, it should be taken into account that the new norm has just reached the Council of Ministers and, therefore, is in a very early stage. The public hearing period will now open and then it will have to be approved by the Spanish government for a second time. Only then will the law make its way to Congress, where parliamentary fragmentation, but especially the fragile relationship with the investiture bloc parties, make it difficult for it to progress. Added to this is the fact that the coming months will be marked by elections in some autonomous communities, while the state elections are scheduled for 2027. Despite the context and the little time the Spanish government has, Sánchez is starting the year by setting the objective of continuing with the legislative agenda, at least on the Council of Ministers' table.