Argentine leader takes on media giant

BUENOS AIRES, (Reuters) – Argentina’s combative  president is going head-to-head with one of Latin America’s  biggest media groups over a broadcasting reform bill that  opponents say is an authoritarian bid to muzzle criticism.

Cristina Fernandez, who has been locked in conflict with  farmers since early on in her turbulent presidency, wants to  pass the reform bill before she loses her congressional  majority when new lawmakers take their seats on Dec. 10.

She says it will open the media and telecommunications  sector to more companies, but the bill has been overshadowed by  the government’s increasingly bitter showdown with Grupo  Clarin, Argentina’s leading media conglomerate.

“The government sees this as the mother of all battles. If  it isn’t approved by this Congress, it could be a bigger  political loss than they suffered (with the farmers),” said  Rosendo Fraga, an Argentine political analyst.

Fernandez, who took office in late 2007, lost control of  Congress in a June mid-term election, but her push to pass the  media bill before December has dampened speculation she might  soften her confrontational style after the electoral loss, and  political tensions have flared.

Fernandez’s husband, former President Nestor Kirchner, has  criticized Clarin’s coverage of the government, and the  president has suggested some media companies are being used by  their owners to attack her.

“Freedom of expression can’t become freedom to extort (and)  press freedom can’t be confused with freedom for press owners,”  she said before sending the bill to Congress.

Several key opposition leaders have come out against the  bill, which is expected to be taken up in the lower house of  Congress next week.

The bill could pave the way for telecommunications firms to  enter the cable television business, and it also aims to give  more air time to the public sector and non-profit groups like  churches and universities.

The dispute with Grupo Clarin marks a change of opinion by  the presidential couple, which had a cozy relationship with the  company until farming protests erupted in early 2008 and the  group’s news outlets turned against them.

Tensions rose further when the government took over soccer  TV broadcast rights after football officials rescinded a  contract with a Clarin company last month.

Last week, the head of Argentina’s broadcast regulator  vetoed the merger of two Clarin-controlled cable operators in a  move company officials suggested was intended as a blow to the  group’s businesses.

One of Argentina’s leading companies, Grupo Clarin owns  newspapers, television and cable TV channels, along with radio  stations and cable and Internet companies.
On Thursday, more than 150 tax inspectors raided Clarin’s  main newspaper, calling it a routine inspection. But company  officials described it as a “pressure tactic”, a charge the  government rejected.

Critics say the media reform bill, which aims to update  broadcasting regulations dating from a 1976-83 military  dictatorship, will give the government the power to hand out  new media licenses at a time when it has repeatedly criticized  the media.

“This project has appeared in the middle of a battle  between the government and the media and is clearly intended to  benefit people close to the government,” said Silvana Giudici,  a congresswoman from the opposition Radical party.

The bill will force a few media groups to sell off some of  their holdings within a year.
“This bill is unrealistic. There are several articles that  violate property rights,” said Daniel Vila, the head of the Uno  group, which owns TV and radio stations across the country. Under the proposed bill, Clarin would be prevented from  owning both an open-air television station and one on cable,  potentially reducing its influence as the country’s dominant  media company. Telecommunica-tions companies Telecom Argentina and Spain’s  Telefonica, could stand to benefit from the reform by gaining  footholds in the potentially lucrative market to offer  triple-play packages of cable TV, high-speed Internet and  telephone services.

But it is the political motivation behind the initiative by  the Kirchners, who have increased state intervention in some  sectors of the economy, that will hang over the congressional  debate, said Ricardo Rouvier, a political analyst and  pollster.

“Kirchner and the government are waging a tough battle with  Grupo Clarin, and Clarin isn’t backing down. It’s going to be a  battle until the end,” he said.