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AIR-IAB Expresses Concern Over Proposed New Economic Burdens on Broadcasting in Costa Rica

The International Association of Broadcasting (AIR-IAB) expresses its concern over the approval in first debate by the Legislative Assembly of Costa Rica of Bill No. 24.461, which reforms the Radio Law and establishes a new framework for calculating the fees payable by radio and television licensees for the use of the radiofrequency spectrum.

AIR-IAB fully recognizes the right of States to establish reasonable charges for the use of the radiofrequency spectrum. However, any economic burden imposed on the media must be based on technical, objective, reasonable, and proportionate criteria, with particular consideration given to its impact on the viability and sustainability of media outlets and, ultimately, on pluralism and freedom of expression.

The approved bill establishes a progressive fee calculated on gross revenues derived from the use of licensed frequencies, which may reach up to 7.73% for television and 3.13% for radio. The imposition of charges of this magnitude on gross revenues, rather than on profits or net earnings, warrants particularly careful consideration, as it may significantly affect companies that, despite generating revenues, operate on narrow margins or may even experience periods of losses.

AIR-IAB recalls that private broadcasting is already subject, in addition to the taxes and general obligations applicable to businesses, to specific burdens arising from its activity, including those related to the use of the radiofrequency spectrum, as well as the payment of copyright royalties and other obligations associated with the production and distribution of content.

The accumulation of excessive or disproportionate economic burdens may jeopardize the sustainability of media outlets, particularly small, local, and regional broadcasters. Under certain circumstances, a charge calculated on gross revenues, without adequate consideration of the economic circumstances and ability to pay of each media outlet, could even have materially confiscatory effects or jeopardize the continued operation of broadcasting services.

This issue is particularly significant from the perspective of freedom of expression. AIR-IAB recalls that freedom of the press may be affected not only through direct restrictions on content. Economic or regulatory measures that, because of their magnitude or disproportionality, jeopardize the existence or independence of media outlets may also affect media pluralism and society’s right to receive diverse information and opinions.

AIR-IAB also considers it essential that any public policy in this area take into account the profound transformation of the media ecosystem. Free-to-air radio and television currently compete for audiences and advertising revenues with digital services and major global technology platforms that distribute content and advertising in the same markets, but are not necessarily subject to equivalent regulatory and economic burdens. Maintaining significantly different obligations for actors competing within the same ecosystem may deepen existing asymmetries and undermine the sustainability of local and national media.

AIR-IAB is not seeking privileges or special treatment for broadcasting. On the contrary, it maintains that media outlets must comply with the applicable tax and regulatory obligations, provided that these are fair, rational, equitable, and proportionate. What is incompatible with a democratic society is for the burdens imposed to reach a level capable of jeopardizing the very existence of the media that make pluralism and the free flow of information possible.

The International Association of Broadcasting (AIR-IAB) respectfully calls upon the Legislative Assembly and the authorities of Costa Rica, prior to the final approval of this reform, to carefully assess its economic impact and adopt a reasonable, proportionate, and technically sound framework that reconciles the legitimate administration of the radiofrequency spectrum with the indispensable protection of freedom of expression, pluralism, and the sustainability of free and independent broadcasting.

Montevideo, August 31, 2026