Prime Minister Shinzo Abe is considering abolishing a regulation that limits the percentage of foreign equity stakes in broadcasters, as part of a debate about reviewing regulations on broadcasting businesses.
The Broadcast Law and other laws ban foreign entities from obtaining stakes in a broadcaster that exceed 20 percent. Foreign stakeholders are therefore not allowed to exercise more than 20 percent of voting rights at shareholders meetings of broadcasters.
The regulation was prompted by the fact that broadcasters also report the news, and therefore companies have the potential to significantly influence public opinion.
If the regulation on foreign entities is abolished, it is feared that companies from other countries, for example China, will buy Japanese broadcasters and have them air propaganda content that is favorable to their country. If this happens, the situation could become a problem affecting Japan's national security.
Calls have also continued for the introduction of a system to auction off radio wave frequency bands. Such a system would give companies that present the highest bid the right to use the allocated bands.
The government's Regulatory Reform Promotion Council concluded in autumn last year that the introduction of an auction system would not be carried out for the time being. This was due to concern that surges in the amounts of bids accepted could mean broadcasters and other related companies would be unable to allocate enough money for their equipment.
There were also fears that foreign companies or other entities with abundant funds could take control of many radio wave frequency bands.
However, members of the council regard the introduction as an issue that should continue to be discussed. It is therefore possible that calls to introduce the auction system will resurface.
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