Knesset passes first reading of controversial broadcast reform bill

After a vote of no confidence in the government failed, the Broadcasting Bill proposed by Minister of Communications Shlomo Karhi passed its first reading in the Knesset, with a majority of 54 Iin favor and 47 against. The bill now goes through the Knesset committee stage with Karhi preferring that the bill not be discussed by the Economics Committee, headed by MK David Bitan, even though he is a Likud colleague.

Karhi’s broadcasting reform entails the establishment of a new authority, along with other measures such as cancelation of basic television packages, cancelation of sports broadcast exclusivity, and removal of barriers that prevent the establishment of new channels.

Objections to the bill are wide-ranging. The Attorney General says the bill “endangers the image of free media in Israel,” the Regulatory Authority insists there are flaws in the process of formulating the legislation; the Competition Authority opposes transfer of competition powers to Minister Karhi’s council, the Ministry of Finance, which previously warned of disagreements on budgeting of the reform; and the US expressed displeasure on the plan to impose investment obligations on American streaming companies like Disney and Netflix.

Karhi: More channels, more opinions for less money

After the bill was passed Karhi said, “Despite opposition by the tycoons and a tsunami of fake news, the winners are the consumers, who will gain more channels, and more opinions for less money.”

He added, “The reform that has now passed is a historic revolution in freedom of opinion and consumer choice. After years of stubborn struggle, and despite the opposition of the Attorney General and those who seek to control the market of opinions, power is now passing to the people. The law is expected to lead to a more competitive, diverse and transparent market, while eliminating bureaucratic involvement in the content and business model and providing a platform for all opinions in Israeli society.”

Establishing a political regulator and sanctions

The main move is to close the existing regulators in the broadcasting market – the Second Authority for Television and Radio and the Cable and Satellite Authority – in order to establish a new regulatory body, which will have many powers and will be called the “Broadcast Communications Authority.” This is ostensibly an independent authority that is not subordinate to the Minister of Communications, and iwill be supervised by the “Council for the Regulation of Audio-Visual Content.” However, the criticism directed at Karhi is that the Council is largely appointed by the Minister of Communications. According to the legislation, the minister appoints the chairman and three other members of the council.

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The law would also authorize the council to impose fines and financial sanctions on broadcasters for various violations – up to 1% of the annual revenue of the violating body – with criticism being that some of the provisions are vague and unclear. This is contrary to Karhi’s statements about a free market and his desire not to interfere in content.

The reform also includes another fundamental change: the abolition of the structural separation that has existed until now between news companies and the shareholders of the media channels. The separation was intended to ensure independent broadcasts free from political or business influences, but now Karhi wants to abolish it, which could affect the channels’ broadcasts.

Karhi has also decided that the new authority will be able to require content providers to publish on their websites the distribution of viewing data by news channel in real time. This proposal has been severely criticized, claiming that the government seeks to intervene in ratings data and turn it into a tradable currency between companies, with all parties sitting around the rating committee table.

Another proposal concerns encouraging Israeli creativity. Karhi wants all content providers and channels to invest 6.5% of their revenue in original content – an amount that could reach up to NIS 300 million annually. However, the legislation will also impose the obligation on Netflix and other international corporations – a move that has sparked US anger, according to reports. Some sources say this requirement may be relaxed or changed later.

The Attorney General has previously said, “Advancing the bill, which is tainted with fundamental flaws, endangers the image of the free media in Israel and its ability to perform its essential role in a democratic society.”

Published by Globes, Israel business news – en.globes.co.il – on November 4, 2025.

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