Russia’s State Duma has questioned a proposed law that would limit the level of foreign ownership in OTT services to 20%.
As previously reported in Broadband TV News, the legislation looked well on course to be enacted at the end of last year.
However, according to Kommersant, the State Duma has now asked the government to explain the need for the 20% foreign ownership limit on the providers of audiovisual services. The draft law was submitted by the Media Communications Union (MKS), which brings together Russia’s largest telcos and media holdings, on November 25, 2016 and envisages the ownership limit to come into effect on June 1 this year.
Kommersant notes that the government has offered to clarify the concept of “audiovisual services”, “audiovisual production” and “creation of audiovisual products”, as well as to refine the criteria for inclusion in the register of audiovisual services”designed primarily for users who are in the territory of one subject of the Russian Federation”.
The MKS has previously said that the legsilation would apply to such services as Google Play and iTunes.
Leading OTT players such as Ivi, Okko and Megogo strongly oppose the proposed legislation.
In their view it does nothing to protect Russian players and limits their prospects to develop.
