Spain’s competition authority, the CNMC, has recommended a series of amendments to the draft Public Sector Advertising Law aimed at increasing transparency and reducing discrimination in the allocation of institutional advertising funds to media outlets and digital platforms.
In an opinion adopted on the government’s draft bill, the CNMC welcomed the proposal’s overall objective of improving transparency, objectivity and non-discrimination in the distribution of public advertising budgets, in line with the European Media Freedom Act. However, it argued that several provisions should be strengthened before adoption.
A key feature of the draft law is a cap preventing media providers and online platforms from receiving state advertising where public advertising revenue exceeds 35% of their annual turnover. The CNMC supports the introduction of such a limit but recommends broadening the calculation to include all forms of public financial support, including subsidies, grants and public agreements, rather than advertising contracts alone. It also suggests applying the threshold to each entity within a corporate group individually.
The authority further warns that an exception allowing certain geographically focused media outlets to exceed the 35% threshold could be discriminatory, as it may favour regional operators over comparable national providers.
The CNMC also calls for more precise rules on how public advertising contracts are awarded, recommending that the law clarify which procurement procedures qualify as “open, objective and non-discriminatory.” It further advocates replacing subjective preferences for informational media with measurable and objective suitability criteria.
In addition, the authority seeks broader transparency obligations covering all contracts with media and digital platforms, as well as any subsidies, grants or similar arrangements involving public authorities.
The draft legislation would also assign the CNMC new oversight powers regarding public advertising expenditure and the independent functioning of state-owned public media. The authority notes that these expanded responsibilities should be accompanied by additional organisational and staffing resources.
Overall, the opinion reflects the CNMC’s support for tighter scrutiny of public spending in media markets while signalling concerns that aspects of the draft could distort competition if left unchanged. The recommendations are non-binding but may influence the final legislative text.
