New Draft Bill Seeks to Regulate Audiovisual Communications in Digital Platforms

On August 5, 2022, the bill “Law on Audio-visual Communication on Digital Platforms" was presented before the Argentine Chamber of Deputies with the objective of updating the regulatory framework governing the provision of audiovisual services.

The bill seeks to establish rules compatible with any technology that might be used, therefore proposing a regulatory framework for the obligations of non-linear TV platforms, video-sharing platforms, and general organizers of third-party audiovisual communication services.

Likewise, the bill amends the Audiovisual Communication Services Law No. 26522, the Argentinian Digital Law No. 27078, and the Decree No. 280/97.

Article 1 of the bill incorporates to Law No. 26522 concepts that were already contemplated in Law No. 27078: "Broadcasting subscription" (with slight formal amendments), "physical link broadcasting subscription", and "radio link broadcasting subscription".

However, the bill also incorporates new concepts, such as “on demand audio or audiovisual services”, “digital service for the distribution and exchange of audiovisual and/or sound content through a platform”, and “video or audio produced by users”.

The bill defines "on-demand audio or audiovisual service" as “a service offered for the provision of digital audio, music, or audiovisual content at the chosen time and on demand, on the basis of a catalogue, and subject to a subscription, pay-per-view registration, or free registration with advertising or promotions included in the service”.

It also defines “digital service for the distribution and exchange of audiovisual and/or sound content through a platform” as “any kind of distribution or access permission services and/or viewing of audio, music, video, or videogame formats via Internet or other technological platforms other than broadcasting or on-demand audio or audiovisual services, in which service providers have no editorial liability”.

In this sense, the bill details a series of different modalities that providers may use to offer the service. However, it excludes informative services or digital media communication platforms if they have audiovisual content complementing the information service, and/or those audiovisual content exchange or sharing services that make up mass consumption platforms, up to a certain number of users.

The bill incorporates as well the definition of “user-generated video or audio” as “a set of moving images and/or sounds, constituting a single element, regardless of its duration, created by a user, and made available to other people through an audiovisual and/or sound content exchange platform”.

The bill amends article 58 of Law No. 26522 and incorporates "audio and/or video on demand service providers" and "audio, music, audiovisual, or videogame format distributors or access enablers, including audiovisual content sharing or exchange platforms identified as a digital service for the distribution and exchange of audiovisual and/or sound content through a digital service" to the Public Registry of Signals, Producers, and Providers of Digital Services of Distribution and Audiovisual Content Exchange on the Internet [Registro Público de Señales, Productoras y Prestadores de Servicios Digitales de Distribución e Intercambio de Contenidos Audiovisuales en Internet], under the Argentine Communications Agency (ENACOM). Likewise, service providers incorporated by article 1 –those providing services in the country as foreign companies but who do not have headquarters, branches, or subsidiaries in Argentina– must establish their fiscal and legal domicile in Argentina.

Article 7 of the bill –which amends article 96 of the Law No. 26522– incorporates as new taxable event: the "on demand audio or video services provision", distinguishing between foreign and domestic providers regarding the tax rate. Further, it establishes a tax for those who provide "services of distribution and exchange of audiovisual and/or sound content through a platform”.

Finally, in other articles, the bill incorporates new obligations regarding regulation compliance on gender identity and the promotion of healthy eating. The articles create the obligation for audiovisual service providers to have content rating systems oversaw by the application authority. The bill incorporates an article on production quotas and percentages of location, as well as visibility in the catalogue for audio or audiovisual services on demand.