Israeli Communications Reform Law Frozen by Supreme Court Amid Legal Challenges

On Thursday, Israeli Communications Minister Shlomo Karhi declared the successful passage of a major communications reform law in the Knesset, aimed at reshaping the Israeli media market. However, shortly after its approval, several petitions were filed to the Supreme Court challenging the law's immediate provisions. Early Sunday, Justice Ofer Groskopf issued an interim injunction freezing the enforcement of key immediate measures, including eased regulations for small broadcasters and bans on exclusive sports content, to prevent irreversible changes before a full hearing. Provisions scheduled for later this year remain unaffected.

Justice Groskopf noted the petitions raised serious concerns about the legislative process and the law's substantial impact on the communications sector, warning that reversing its effects later could be difficult. The respondents must submit responses by the following Sunday. Karhi criticized the court's intervention on social media, asserting the Supreme Court lacks authority to suspend laws. Opposition parties quickly voiced their objections.

The law, pushed rapidly by Karhi despite warnings from government legal advisors, underwent numerous amendments, some made behind closed doors by a special committee chaired by MK Galit Distel-Atbaryan. The legal counsel to the Knesset highlighted procedural flaws and the lack of transparency and data during committee deliberations. Karhi even called for the dismissal of the Knesset legal advisor over her objections.

The reform's main goal was to open the market to competition and strengthen free media. Yet, the final version benefits certain players disproportionately. Channel 14 retains its status as a "small channel" with eased financial thresholds, while commercial broadcasters Keshet and Reshet gain relaxed advertising and ownership rules. Content providers like HOT, Yes, Partner, and Cellcom can now launch channels and sell advertising, intensifying competition. Patrick Drahi, owner of i24NEWS, stands to gain significantly, as the law allows OTT broadcasters to transmit on cable and satellite without paying traditional license fees.

Regarding sports broadcasting, the law removes regulatory obligations to include sports in basic packages, allowing providers to charge separately for premium content. Critics warn this may increase costs and enable international platforms to buy Israeli rights and charge viewers. The law mandates that events of public importance, such as Israeli national team matches, can only be broadcast on pay TV if simultaneously aired free-to-air; otherwise, rights holders cannot broadcast them at all, even for free. The Communications Ministry states the law prohibits charging for public-interest sports events and requires free access to all viewers.

The Supreme Court hearing is expected next week, focusing on the law's procedural and substantive issues. The outcome will determine the future of Israel's media landscape amid ongoing political and legal battles.