The European Commission told the Nova.rs portal hat the European Board for Media Services is setting up an expert group to look into the sale and takeover of Adria News Network (ANN) media outlets in Serbia to Alpac Capital, N1 reports.

The deal drew calls from journalists’ organizations for a review by the European Union. The European Federation of Journalists (EFJ), Balkan Free Media Initiative and Article 19 Europe called the European Board for Media Services and the European Commission to look into the transaction. Alpaca Capital CEO Pedro Vargas David registered himself as director of all ANN media outlets and companies earlier this week.

Nova.rs asked the European Commission for a comment about the deal and was told that the “European Board for Media Service is setting up an ad hoc expert group to look into the admissibility of the case". "We therefore have no comment at this stage on whether the present transaction would fall under the European Media Freedom Act (EMFA) ,” a Commission Spokesperson said in a written reply, adding that the EC can’t comment company decisions.

“In general terms, media freedom and pluralism are essential foundations of a democratic society and important part of fundamental rights in the EU. Both the EMFA and the revised Audiovisual Media Services Directive (AVMSD) provide for media pluralism safeguards and guarantees to ensure for transparency of media ownership. The European Media Freedom Act inter alia obliges Member States to provide an assessment of the impact of key media market concentrations on media pluralism and editorial independence through media pluralism tests. It is therefore for the competent authorities of the Member States to ensure the proper implementation and enforcement of EU acquis in this area,” the spokesperson said.

The spokesperson added that respecting and ensuring media freedom and pluralism is key for the EU path of the EU candidate countries. “As part of their accession process under chapters 23 (judiciary and fundamental rights) and 10 (digital transformation and media) they are expected to align with EU acquis and standards in this area and implement them properly in practice. Our Enlargement Package reports provide for a full assessment of the situation and persisting challenges in these areas in all the candidate countries,” the Commission spokesperson said.

N1 also reports that Serbia’s Information and Telecommunications Minister Boris Bratina called Alpac Capital owner Pedro Vargas David to register N1 Belgrade and Nova S TV with Serbia’s electronic media regulator REM after the company completes its takeover of the outlets.

In an open letter addressed to Vargas, Bratina said that amendments to Serbian legislation adopted in November 2023, which incorporated provisions of the EU’s Audiovisual Media Services Directive, mean broadcasters formally based in an EU member state can be considered established in Serbia when editorial decisions are made in Serbia and a majority of employees involved in program production are paid in Serbia.

He said N1 Belgrade and Nova S meet those criteria and should come under the authority of the REM.

The minister criticized their reliance on the European Convention on Transfrontier Television and called on Vargas to change that practice following the takeover.

Bratina said the Luxembourg audiovisual regulator ALIA shielded N1 and Nova S from regulatory responsibility in Serbia. He also accused the stations of avoiding taxes and fees paid by other Serbian media.

Bratina accused N1 and Nova S of having become major political players within Serbia's opposition and anti-government sphere. He alleged that they had given preferential treatment to opposition figures while treating government representatives unfairly.

The REM is currently unable to take formal regulatory decisions because its Council (the governing body) is not complete.

The Independent Association of Journalists of Serbia (NUNS) criticized Bratina's letter. Its secretary general, Tamara Filipovic Stevanovic, described it as political pressure presented in legal language and warned that the minister's rhetoric could signal future measures against the broadcasters.