MEXICO CITY — Mexico's legislature caved. So did its president. Now, the nation is tuning in to see whether Grupo Televisa and TV Azteca can get their way with the Supreme Court.
In what's being billed as one of the most important legal decisions in recent years, the high court next week will begin reviewing the constitutionality of a controversial broadcasting law pushed through Congress by the TV giants last year.
The legislation, which grants additional broadcasting spectrum to the two companies that already dominate the airwaves here, sparked protests and allegations of backroom dealing. Critics say what started out as an effort to overhaul Mexico's media laws and spur transparency and competition has only strengthened the media behemoths and made it tougher for prospective players such as NBC Universal to crack the market.
The court agreed to examine the legislation after dissenting lawmakers challenged its constitutionality. Court watchers say the outcome will show whether any Mexican institution can rein in the oligarchies that control key sectors of the economy and hold sway in government.
"This is really about who governs Mexico," said Denise Dresser, a columnist for the newspaper Reforma. "Is it the government, through effective regulation in the name of the public interest? Or is it the vested interests ... the de facto powers that have become more powerful than the government itself?"
Televisa and TV Azteca declined to comment. The companies in the past have defended the legislation as a much-needed modernization of Mexico's media laws that will promote competition, innovation and transparency.
Dubbed the "Televisa Law," the measure grants new digital channels to existing TV station owners, who don't have to compete for them or pay for the privilege. Opponents say that's a massive giveaway of public spectrum that will cost the Mexican treasury billions and block new players from the market.
The law also grants Televisa and TV Azteca 20-year concessions with renewal virtually guaranteed. The pair control about 95% of Mexico's TV stations, snare most of the advertising money and determine how millions of Mexicans are entertained and informed. In a nation where the vast majority of people get their news from network TV, the broadcasters have extraordinary power to shape public opinion.
Televisa is particularly influential. It controls two-thirds of the nation's television stations, Mexico's largest cable provider and its only satellite TV service.
