The Constitutional Court has ruled that the "tied sale of broadcast advertising" system—under which terrestrial broadcasters such as KBS, MBC, and SBS bundle ads from regional and small broadcasters when selling ads and share the revenue—does not violate the Constitution.
On Feb. 26, the Constitutional Court rejected, in an 8-1 decision, a constitutional complaint filed by a person surnamed Lee, head of a film planning company, challenging Article 20(1) and (2) of the Act on the Entrustment of the Sale of Broadcast Advertising, etc. (Media Rep Act).
The contested provision stipulates that "a terrestrial broadcast advertising sales agent shall sell regional and small broadcaster advertising in combination with other terrestrial broadcast advertising."
The Constitutional Court said, "Advertisers who do not wish to purchase ads from regional and small broadcasters may use ads offered by program providers such as general programming channels," adding, "They may also choose various forms of advertising such as online ads."
It also noted, "In the past, amid circumstances where it was difficult to devise a single support plan for (regional and small broadcasters) due to the complex interests among numerous broadcast operators, the current tied sale system was introduced as a solution." It added, "It cannot be said that the provision under review violates the principle of proportionality and infringes on advertisers' freedom of contract."
Justice Kim Hyeong-du, in dissent, said, "Advertisers do not occupy a constitutional status bearing any obligations related to realizing the public nature and diversity of broadcasting," adding, "The provision under review effectively makes advertisers the primary parties substantively responsible for active financial support of regional and small broadcasters."