WRITTEN QUESTION E-0385/00 by Nelly Maes (Verts/ALE) to the Commission. Anti-advertising chip in televisions.
Date: 2000-02-15
Institutions: European Parliament, Provisional data
Subjects: advertising, advertising budget, commercial media, electronic component, impact of advertising, television, television equipment

C 330 E/148

Official Journal of the European Communities

EN

21.11.2000

However, inexplicably, the accession was not total, since the act of accession did not incorporate all of the
regulations listed in the annex of the agreement on the date of signing (27 November 1997). This
situation, combined with the fact that the number of regulations has increased since then, means that there
has not been full adaptation to technical progress in this sector.

Does the Commission intend to complete this list by the end of 2000 in order to incorporate in the act of
accession all those regulations contained in the Revised 1958 Agreement which are currently outstanding?

Is there any legal or technical obstacle to full incorporation?

Answer given by Mr Liikanen on behalf of the Commission

(29 March 2000)

With the adoption of Council Decision 97/836/EC of 27 November 1997, the Community has become a
Contracting Party to the United Nations(cid:146) Economic Commission for Europe (UN-ECE) Revised 1958
Agreement on 24 March 1998. At the date of its accession to this Agreement, the Community has
restricted its accession to the recognition of 78 Regulations annexed to it.

It has been agreed that UN-ECE Regulations which are binding on the Community are to be published in
the Official journal before their entry into force. In the meantime, the Member States accept approvals (cid:129)
even when granted by other Contracting Parties (cid:129) and grant approvals according to these Regulations.

Ever since the Community(cid:146)s accession to the UN-ECE 1958 Revised Agreement the number of Regulations
has remained unchanged. In order for new UN-ECE Regulations to be adopted, the Council, on a proposal
from the Commission and after the assent of the Parliament, has to approve them first. Several new draft
UN-ECE Regulations are currently being examined by the Council with the intention of having them
recognized by the Community. It should also be recalled that the Parliament has already given its assent to
two of them.

With regard to existing UN-ECE Regulations which have not been recognized by the Community at the
time of its accession to the Revised 1958 UN-ECE Agreement it should be underlined that the Commission
intends to gradually submit proposals to the Council and to the European Parliament, aimed at the
Community(cid:146)s adhesion to the remaining Regulations. At the time of its adhesion to the UN-ECE 1958
Revised Agreement, the Community in fact considered these remaining 31 Regulations first needed to be
adapted to technical progress by UN-ECE before the Community could adhere to them. This adaptation is
currently being processed by UN-ECE working groups. As soon as this work is finalised, the Commission
will table the appropriate proposals.

It should also be underlined that the Community has played an active role in the UN-ECE decision making
process with regard to the amendment of UN-ECE Regulations to which it has adhered. Thus,
between November 1998 and October 1999, the Community has accepted some thirty amendments to
UN-ECE Regulations it has recognized.

For reasons of transparency, the Commission will examine the possibility to establish a register showing
the actual state of application of UN-ECE Regulations by the Community.

(2000/C 330 E/168)

WRITTEN QUESTION E-0385/00

by Nelly Maes (Verts/ALE) to the Commission

(15 February 2000)

Subject: Anti-advertising chip in televisions

Some televisions nowadays have an electronic chip which automatically allows advertisements to be
eliminated and alternative pictures shown. The technology is comparable to that of the chip in a radio
which provides traffic news. The advantage to consumers is that they can avoid seeing advertisements.
Advertisers will have a motivated audience. The alternative to advertising could be funded by gradually
reducing the tax deductibility of advertising costs.

21.11.2000

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Official Journal of the European Communities

C 330 E/149

Activating the chip requires a change in legislation so that it would be obligatory to emit a signal when an
advertisement starts. Rules are also needed on offering an alternative.

Hence, there is a need for European rules making the chip compulsory for all televisions that are placed on
the market.

Can the Commission say whether European rules making it compulsory to fit a chip are feasible and
desirable?

What initiatives will the Commission take to introduce such rules?

Answer given by Mr Bolkestein on behalf of the Commission

(31 March 2000)

The Honourable Member refers to the new technical possibility of allowing viewers to replace television
(TV) commercials with substitute pictures. This approach would require the insertion of an appropriate
chip in television receivers to detect advertising. The Commission understands that no system has yet been
defined to undertake this task, although certain technical elements of the radio data system might provide
a technical basis for such a capability in radio.

The Honourable Member considers that on the one hand, this capability would be of interest to viewers
wishing to avoid advertising and on the other, to advertisers interested in reaching only those consumers
who are receptive to their commercial communications. The Honourable Member suggests that the
replacement pictures could be financed by progressive reduction in the tax deductibility associated with
advertising expenditure. The Honourable Member believes that a change in law would be required to allow
for such signals to be transmitted by broadcasters and furthermore to ensure that the required infrastruc-
ture be put in place to allow for these (cid:145)replacement broadcasts(cid:146). The Honourable Member therefore asks
the Commission whether it believes it to be desirable to legislate for the insertion of these chips in
televisions to be made mandatory.

First, the Commission sees the usefulness of this technical concept for consumers who do not wish to
receive TV advertising. It also agrees that advertisers prefer to target those consumers who are most
amenable to advertising. It would therefore seem that this concept should be of interest to both TV viewers
and advertisers and that there would therefore be a market for it. In the event that such an innovation
would be a viable proposition for any TV manufacturer, the Commission does not therefore see any reason
to legislate in this area. One should also consider that broadcasting technology is changing. The
introduction of digital television will make possible new forms of advertising, but also give consumers
more control, thanks to interactivity. Any system developed for analogue television risks obsolescence.

it is clear that commercial TV broadcasters whose sole source of

funding is the sale of
Secondly,
advertising and sponsorship time, would as a consequence of the spread of this technology, have to
respond by either changing their existing media sales rates or consider charging consumers for this
(cid:145)premium, advertising clear(cid:146) service. The Commission, again, does not believe that legislation is necessary
to force them to offer such a service that has a clear value-added to viewers and advertisers.

Finally, the Commission does not believe that the Honourable Member(cid:146)s suggestion of decreasing tax
deductibility on advertising expenditures would be of assistance in this matter. On the contrary, this would
further reduce the demand for advertising space by advertisers which in turn would put further pressure
on commercial TV broadcasters and thus worsen their chances of developing an appropriate funding
method for diffusing such an interesting technology. In addition, at the present stage the Commission sees
no prospects of the adoption of Community rules, which would in fact amount to partial harmonisation of
national legislation concerning deductibility on advertising expenditures for direct tax purposes.