CBI opposes EU regulation of online video

A proposed TV Without Frontiers Directive would impose new restrictions on web broadcasters

European business groups have joined forces to launch a campaign to oppose European Union (EU) plans to extend traditional broadcast regulations to cover audio-visual internet content.

A European Parliamentary meeting is scheduled to discuss the EU's new TV Without Frontiers Directive, which would extend some content regulations governing traditional broadcasters to cover the new breed of web broadcasters.

Business groups, including the Confederation of British Industry (CBI) have signaled their opposition to the directive claiming it will stifle innovation, introduce unnecessary red tape, and even inhibit job creation.

CBI deputy director-general John Cridland said in a statement that the proposed law was unnecessary onerous and would duplicate much of the legislation already governing online service providers.

"If they approve this, MEPs and EU ministers risk shooting themselves in the foot by undermining the goal of promoting an 'open and competitive digital economy' under the European Commission's i2010 programme," he added. "There is little in this Directive to help Europe's businesses compete in the fast-moving, highly competitive world of interactive digital services, broadcasting and advertising."

Online web and audio content has become important to many firms in recent years as they look for new ways to communicate with customers. Advertisers in particular have started to use web-based video and so-called viral marketing to deliver online content that would not be allowed on television under current broadcast regulations.

Such moves by advertisers, coupled with the growing use of web content and perennial concerns about pornography online, have inevitably prompted the EU to look to regulate the nascent market.

But Cridland insisted self-regulation can address any public concerns about the way firms are using online audio and visual messages. "European businesses are at the cutting-edge of ensuring their customers are protected on the internet, and self-regulatory systems have been proven to be responsive to change and effective in resolving problems," he argued.