OWNERSHIP CONCENTRATION IN MEDIA HOUSES:

ANALYSING TRAI’S RECOMMENDATION

Research paper submitted in partial fulfillment of the requirements for the award of the
degree of B.B.A LLB

SUBMITTED TO:
DR. GIRISH R.
FACULTY CONVENER
GNLUMSIL ORGANIZING COMMITTEE
GUJARAT NATIONAL LAW UNIVERSITY

SUBMITTED BY:
ISHA KATYAL
19A069

Gujarat National Law University

Attalika Avenue, Knowledge Corridor
Koba, Gandhinagar, Gujarat–382426
2023
 INTRODUCTION

The project, Media Ownership Monitor: Who owns the media in India?1, was pursued by
international organization (Not for profit) ‘Reporters Without Borders’ (RSF) and DataLEADs
which is a Delhi based digital media company. This project revealed the ownership / shareholding
pattern in media industry and also as to who ultimately controls mass media. It gave a clear picture
that Indian media market is establishing a pattern of monopoly. This reflects the need of change in
regulatory framework in orderto prevent media concentration and safeguard the plurality.

Media being “the fourth estate” plays unique role in democracy. It acts as a watchdog of public
interest and plays various roles like commentator and witness of government and society at large.
Owing to the importance of role of media, it cannot be permitted to be in the hands of few i.e.
ownership which even affect the plurality and hence such concentration should not be allowed.
They even hold special rights and freedoms are given to avoid any kind of interference in their work
but they are also subjected to someresponsibility. As Lord Leveson says “With these rights (of the
press) come responsibilities to the public interest: to respect the truth, to obey the law and to uphold
the rights and liberties of individuals.”2

Ministry of information and broadcasting referred to the authority to exam the matter related to
cross media ownership on 22 may 2008. In response to this recommendations were made on
horizontal and vertical integration and concentration of control/ ownership across media. But
authority recommended not imposing any such restrictionon cross media ownership.

Standing committee on information and technology has condemned for the inaction inpreventing

1
Media Ownership Monitor: Who owns the media in India?’ RSF reporters without borders
2
Lord Justice Leveson, ‘An Inquiry into the Culture, Practices and Ethics of the Press’, London:November
2012
media concentration3 due to the uncontrolled corporatisation of media and cross media ownership
which affect the public interest. Hence TRAI was asked to re- examine the issue of vertical
integration in the broadcasting sector and also cross media ownership. This was followed by
‘Recommendation on issues relating to media ownership.’ July 3 2012. But still these
recommendations are not yet brought into force even after major shift ofconcentration which is
leading to monopoly in media industry.

Hence there comes the need of investigating the need for the implementation of recommendation
which deals with the cross-media restrictions and also to the regulatory framework. In-depth
analysis of the recommendation is to be made with criticisms and challenges as may be faced and
also the arguments placed by the stakeholders has been analyzed in the paper.

STATEMENT OF PROBLEM

In view of the recent reports which highlight the major concentration in the ownership of media
industry which is a normal phenomenon in economic perspective but this negatively affects the
plurality of opinions in the media industry when coupled with technology. This further leads to
various other problems like paid news, political influence, private treaties, lack of plurality of
opinion etc.

1. There arise is need to address the concern of imposition of structural regulations in the media
industry which acts as a balance of power, which seeks a democratic distribution of media
ownership.

3
Paranjoy Guha Thakurta, ‘Media ownership trends in India’ (The Hoot, 3 July 2012)
<http://www.thehoot.org/web/home/story.php?storyid=6053> accessed on 10 Septmenber, 2020
 2. The research in this dissertation is basically oriented towards the ownership concerns in the
media market, how this affects the plurality of opinion and also the paid news. While
addressing this question of ownership, legal framework dealing with ownership concern is
competition act which is also scrutinised to find the appropriate regulation which would be
applicable in such cases.
3. Apart from the regulations, the main question arises as to the applicability of the
recommendations and major part of it being challenged by the stakeholders.

The research will be addressing the above questions and problems and would try to find the
loopholes if any and give recommendations as the author deems fit.

SIGNIFICANCE OF THE STUDY

TRAI’s recommendation on media ownership in media has discussed on control, cross media
ownership, vertical integration and various other issues but till date no step has been taken to
implement them or has been brought in action.

The significance of this study is to determine the need for such recommendation in the media
industry. This would reflect the need of imposition of such restrictions. This research work would
give importance to architectural censorship i.e. structural regulations which are of great importance
in media industry now as with time the ownership has become concentrated in few hands and is
affecting the plurality.

This study brings in light the democratic distribution of media ownership whose objective is to
bring diversity of content in public domain and will also lead to proportionate viewership with no
media dominating the viewership pattern. These act as balance of power.
This research confronts us to the oppositions, challenges and counters which the recommendation
face and also gives an in-depth analysis of the same which would help in coming to any conclusion
like to implement it or to change some of them substantiated by giving reasons. Considering the
analytical nature of the research the same is beneficial to understand the recommendations and
critically examine the drawbacks and challenges faced.

This gives us a way forward to previously use self-regulation regime which was unsuccessful and
in public interest there is need for government intervention through structural restrictions which
would help in maintaining the democratic idea.

REVIEW OF LITERATURE

1. Baker, C. E., &mattingly, P. W. (2012). Examining media ownership concentration:

Lessons learned from the Comcast/NBC Universal merger. Communication Law and Policy,
17(3), 289-319.

This article explores the impact of media ownership concentration on diversity, competition, and
consumer welfare, using the example of the Comcast/NBC Universal merger. The authors analyze
the effects that such mergers have on the media landscape and provide insights into the potential
consequences of concentrated ownership.

2. Dwyer, T., & Martin, A. (2018). Media ownership: Concentration, trends, and implications
for democracy. Digital Journalism, 6(3), 275-292.
Dwyer and Martin discuss the issue of media ownership concentration and its implications for
democracy. They analyze the trends in media ownership concentration over the years and explore
the potential impact on the diversity of media content, public interest, and the democratic process.

3. Jolls, C., & Sunstein, C. R. (2006). The votes of other judges. The Journal of Legal Studies,
35(2), 399-440.

This article focuses on the issue of concentrated media ownership and its potential influence on
judicial decision-making. Jolls and Sunstein investigate the relationship between media ownership
concentration and judicial outcomes, analyzing whether media ownership can affect the votes of
judges in certain cases and the implications for the justice system.

4. PPC, A. (2020). Media ownership concentration and its effects on newsroom diversity. In
Bookmarking Democracy (pp. 80-92). Routledge.

This book chapter examines the relationship between media ownership concentration and
newsroom diversity. The author discusses the impact of concentrated ownership on the
representation of diverse voices in newsrooms and offers recommendations for addressing
ownership concentration to promote a more inclusive and democratic media landscape.

5. Ramaprasad, J. (2014). Institutionalizing transparency in media ownership in India: An

analysis of TRAI's recommendations. International Journal of Communication, 8, 379-397.

The author analyzes TRAI's recommendations on media ownership transparency in India.

Ramaprasad examines the effectiveness of these recommendations in promoting transparency,
identifying potential challenges and discussing the implications for media ownership concentration
and its impact on media pluralism.
6. Chon, M. G., & Koh, Y. J. (2020). Media ownership concentration and agenda-setting
power. Journalism Studies, 21(12), 1751-1771.

This article investigates the relationship between media ownership concentration and agenda-
setting power. Chon and Koh explore how concentrated media ownership can influence the media's
ability to set the agenda and frame public discourse, examining the potential impact on the diversity
of perspectives and the democratic process.

AIM OF THE STUDY

The aim of the study for the research paper on the topic "OWNERSHIP CONCENTRATION IN
MEDIA HOUSES: ANALYSING TRAI’S RECOMMENDATION" is to investigate and analyze
the recommendation made by the Telecom Regulatory Authority of India (TRAI) regarding
ownership concentration in media houses. The study aims to understand the potential implications
of this recommendation on the media industry, as well as its impact on media ownership, diversity,
and competition. The research will examine the current state of ownership concentration in media
houses, the reasons behind TRAI's recommendation, and the potential benefits or drawbacks of
implementing such recommendations. Overall, the study aims to provide a comprehensive analysis
and evaluation of the TRAI's recommendation on ownership concentration in media houses.

OBJECTIVES OF THE STUDY

  To understand the concept of ownership concentration in media houses and its impact on
media diversity, independence, and competition.
 To analyze the recommendations made by TRAI (Telecom Regulatory Authority of India)
regarding ownership concentration in media houses.
 To evaluate the effectiveness of TRAI's recommendations in addressing the issue of
ownership concentration and its impact on media pluralism.
 To examine the regulatory frameworks and policies implemented by other countries to tackle
ownership concentration in media houses and compare them with TRAI's recommendations.
 To assess the challenges and potential consequences of implementing TRAI's
recommendations on ownership concentration in media houses.
 To propose alternative or supplementary measures that could be taken to address ownership
concentration in media houses and enhance media pluralism and independence.
 To provide insights and recommendations for policymakers, regulators, and media
stakeholders on addressing ownership concentration in media houses effectively.

HYPOTHESIS

The hypothesis is that:

“Lack of structural regulations and legislations has lead to media concentration in Indiaand TRAI’s
recommendation on cross ownership of media marks a beginning towards structural reforms in
media industry and would help in diluting ownershipconcentration.”

RESEARCH QUESTIONS

1. Whether there exists ownership concentration in media industry?

 2. Do we have legal framework which can help in reducing media concentration? Is the
competition act sufficient?
3. What does the recommendations specifically focus on?
4. Whether the oppositions to recommendations of being detrimental to constitution (freedom
of speech and expression and right to work) appropriate?
5. What are the challenges or loopholes in the recommendation by TRAI?

SCOPE AND LIMITATIONS OF THE STUDY

The dissertation will precisely focus over the recommendations made on cross ownership of media
and henceforth discusses about the theoretical aspect of market concentration specific to media
industry. It is examines how our competition law framework is ineffective in preventing the media
concentration.

Further, the study is based on the oppositions and challenge put forth by media houses and other
stakeholders. Also it discusses about architectural censorship which is related to the structural
regulations. The study is limited to the concentration of news media inthe print and television
sector as TRAI recommendation has limited their scope to the same. Mainly the research being
analytical, it may be subjective and inappropriate in some circumstances.

RESEARCH METHODOLOGY
 The author will be adopting the following methodology:
1. Analytical methodology:
The author would analyze the recommendations at hand and would try to give critique and
alternatives as it deem fit for the issue.
2. Doctrinal approach:
The author will analyze primary as well as secondary sources like statutes, acts, ministry’s
recommendations, commentaries, scholarly articles and empirical studies.

TENTATIVE SCHEME OF CHAPTERS

 CHAPTER I – INTRODUCTION

This chapter gives brief introduction of the topic which will provide background of study, the
significance of subject, research problem, research questions, scope and limitation of research
with the literature review.

 CHAPTER II - MEDIA CONCENTRATION: Concept and legal framework.

This chapter looks over the theoretical aspect and discusses the concept of media ownership in
depth. It also discussed the after effects of such concentration and the legal framework available
to tackle the same and also looking over the effectiveness ofthe law.

 CHAPTER III- CONCEPT OF ARCHITECTURAL CENSORSHIP

This chapter discusses the concept of architectural censorship which is basically reflectsthe need of
structural regulation in media industry.

 CHAPTER IV - ANALYSING THE ARGUMENTS AGAINST STRUCTURAL

REGULATION
In this chapter, counter to the challenges has been given which were made by various stakeholders
against the recommendation of TRAI of it being pervasive of the constitutional rights guaranteed
to media being fourth pillar of democracy.

 CHAPTER V - ANALYSING THE RECOMMENDATIONS BY TRAI

In this chapter, analysis of the recommendations will be done and the same will be discussed in
the light of law present and an in-depth study will be made which would make us aware to the
short coming of the recommendations.

 CHAPTER VI – SUGGESTIONS & CONCLUSION

This chapter will deal with drawbacks and some effective suggestion would be presented. This
chapter will summarize the concept and suggestions and also give explanation of the hypothesis.