The Emergency Government Ordinance 25/2013, published in the Official Gazette of Romania no. 208 of 12 April 2013, brought a series of amendments to the Audiovisual Law no. 504/2012, which primarily concerns the current trade conditions of the TV advertising space and the conditions for the issuance/amendment/transfer of the audiovisual license. The changes will become effective as of 12 April 2013.
- Stricter rules for the sale-purchase of TV advertising space:
- Any acquisition of TV advertising space can be carried out by advertising agencies only in the name and on behalf of the final beneficiary of the TV advert. The advertising agencies are no longer able to acquire advertising space in advance from the broadcasters.
- In order to obtain a price offer from the broadcasters, the advertising agencies need to submit a written mandate granted by the final beneficiaries.
- Broadcasters will issue invoices directly to the final beneficiaries. Also, any price discount or rebate granted by the broadcaster must be mentioned on the invoice issued to the final beneficiary of the TV advert.
- The advertising agencies may not receive payment or consideration from the broadcaster for the services provided to the final beneficiary of the TV advert. The only payment they are entitled to is the payment made by the final beneficiary for the services rendered.
- New requirements for the issuance/ amendments/ transfer of audiovisual licenses:
- A new document must be included in the dossier for the issuance or amendment of the audiovisual license: a fiscal certificate ascertaining that, at the moment the license is applied for or is amended, the applicant has no outstanding debts to the State budget.
Note: It is possible to grant or amend a license even if a company incurs outstanding debts to the State budget, in case this company benefits from facilities or re-scheduling for the payment thereof.
- The audiovisual license cannot be transferred to a third person earlier than one year from the date of the first broadcasting.
These new provisions might have a significant impact on the business of Romanian advertising agencies and, at the same time, regulate stricter requirements that have to be taken into consideration by companies seeking to obtain or to amend an audiovisual license or to transfer such license to a third party.