Mexico. 26 years ago the first website was published on the Internet and the way in which the whole world communicates has changed and, with it, the reality of practically every industry. Now, we buy, work, live together, have fun and inform, more and more, through the internet.
The current informative content on social networks, websites and their respective mobile applications have allowed the ordinary individual to become the editor of his own digital "magazine" (whether in the form of a twitter, facebook or linkedIn feed, just to mention a few), competing directly with traditional media, such as radio, television and written press, especially in terms of advertising revenue.
In addition to rapidly changing conditions in the provision and consumption of information, traditional media have faced anachronistic regulatory conditions in many markets, such as the rules of cross-ownership of media in the United States, which since 1975 prohibit radio or television stations from owning newspapers in the localities where they operate.
This regulation, however sensible it may have seemed 42 years ago, does not respond to the current conditions of the industry, since digital distribution channels guarantee plurality of opinion, the main concern behind this type of rules. Moreover, it has contributed to the disuse of the written press, by not allowing it to benefit from the efficiency in editorial costs that would imply disseminating its information by all available means and reaching the highest level of audience.
In this way, although probably too late, it is expected that in the coming days, the Federal Communications Commission (FCC, for its acronym in English), the authority responsible for this regulation in the neighboring country, will finally annul that provision. This event is an example of the harmful effects that obsolete regulation can have on markets in general; not to mention its effects on markets as changing as communications.
In an environment of convergence of means and infrastructures, as well as accelerated technological progress, the role of regulatory bodies cannot be limited to applying rules and definitions, it must also focus on constantly evaluating their validity and, depending on their powers, proposing or applying changes to them. "Over-the-Top" audiovisual platforms, Fintech services, among others, are clear examples of technological developments that have also taken regulators and industry by surprise and whose disruptive role, if not properly considered in the legal framework, could well have effects contrary to those desirable, especially in countries lagging behind in terms of technological adoption such as our country.
Text written by Gonzalo Rojon of The Competitive Intelligence Unit S.C.
