As early as 2021, the European Commission came up with a package aiming to protect democracy and increase transparency. However, the labeling of political advertising and ensuring transparency of funding was only one part of that and the only one that has thus far been processed.

During that process, Estonia presented its position, in which it was critical of the plan. Although the original text was adapted to make it more legally robust, it still did not reflect Estonia's position.

Nevertheless, the regulation was approved last year on a EU-wide basis. Hungary voted against, while Estonia and Austria abstained. The Estonian view was that the system of adding a transparency statement to political campaign ads could prove too burdensome for electoral candidates with less support, defeating the purpose of the regulation's aim protecting democracy, and also inhibiting political debate.

In addition, while in most EU Member States there are specific requirements for political advertising, which are monitored by dedicated sets of authorities, in Estonia political advertising has not been specifically regulated up to now.

The regulation will apply 18 months after its approval –  from October 10 this year. However, local elections are set to take place in Estonia on October 19, which means that the required additional information will need to be added to all election advertising by that point in time.

From now on, every election advertisement must clearly state that it is a political advertisement, as well as who commissioned it. Ads also have to include a reference to the election to which they relate and include a transparency statement, such as a link to a page with details of who commissioned it, who paid for it, whether the funding came from the European Union, the period during which the advertisement was shown and how much was paid for it.

On Monday, the new requirements for political election advertising were discussed by the Riigikogu's Anti-Corruption Select Committee. Mariko Jõeorg-Jurtšenko, adviser to the Public Law Department of the Ministry of Justice and Digital Affairs, told the committee that other countries did not interpret the regulation in the same way as Estonia.

The ministry has now sent a draft bill for approval that would give responsibility for the monitoring political advertising to the  Consumer Protection and Technical Supervision Authority (TTJA). As the regulation is directly applicable, it does not need to be transposed into Estonian law, so there will be no further vote on it.

"We more or less just had to just look around to see the existing authority, which would presumably be the one best placed to monitor these requirements," said Jõeorg-Jurtšenko at the committee meeting, noting that the TTJA has already been given too many new responsibilities in recent years and would need additional resources to carry out the extra task.

Estonia will not be able to apply for a derogation for the elections, which are due to be held immediately after the EU regulation enters into force. In response to Estonia's queries, the European Commission has clarified that election advertisements published before October 10 are not covered by the regulation. This means, for example, that a QR code with information about campaign funding sources will not be necessary for every election poster put up on October 8. However, the European Commission believes that information could be added to political advertisements published before that date.

According to a Ministry of Justice spokesperson, the European Commission will develop guidelines by July regarding how to apply the necessary requirements to different forms of advertising, including radio, newspaper or those posted online.

Social media platforms will also have to comply with the requirements

One of the main concerns is that if it becomes too difficult for Estonian media companies and advertising agencies to publish political advertising, they may avoid doing so. This could mean ads move primarily to the major social media platforms.

Andres Jõesaar, media adviser at the Estonian Ministry of Culture, said the major platforms will have to comply with the same requirements, with smaller companies being asked to provide fewer details. However, the lack of a specific definition of political advertising in Estonian law has long been a problem, he said.

However, Jõesaar  also said that this will increase the administrative burden on media outlets and advertisers and care has to be taken not to overburden small players.

Jõesaar gave the example that if smaller media companies or agencies were to omit certain things for fear of incurring fines, public debate would be the loser.

Väino Koorberg, head of the Estonian Association of Media Enterprises (EML), said the transfer of the supervisory function for political advertising to the TTJA as a subordinate body of the ministry was also a concern.

According to Koorberg, that the distinction between political and non-political ads needs to be clarified. For example, opinion articles are not considered to be political advertising under the regulation, but the current information in the regulation does not give guidance on how a text commissioned by a public relations manager ought to be classified, for instance. In Koorberg's view, it makes no sense to distinguish between media outlets and social media platforms in that case.

Media outlets voice concerns

Martin Šmutov, board chair and editor-in-chief of Estonian news outlet Õhtuleht, says the main concern is that the absence of clarity means media companies will not be able to prepare for the local elections this fall. At the same time, those renting out advertising space are already beginning to sign contracts for the upcoming elections.

In Šmutov's opinion, it is unclear, for example, that if only EU citizens or third-country nationals with long-term residence permits are allowed to subscribe to political advertising, how those with gray passports, who can still vote this fall, are accounted for in this regard.

Šmutov also added that imposing  these requirements may seem like a good idea at the moment, but in a different political situation, the threat of a fine could be enough to shut down free debate if a large amount of additional information ahs to be provided by electoral candidates.

According to Sander Maasik, Delfi's advertising director, it is practically impossible to monitor electoral advertising. The role of TikTok in the Estonian advertising market has also grown considerably, with Maasik questioning whether the correct data could even be obtained.

"We are not opposed to the fact that there ought be a differentiation for political advertising, but this regulation – as varied and complex as it is, it is too strict," Maasik said.

According to Liisa Oviir, head of the Political Parties Financing Surveillance Committee (ERJK), the parties concerned could have had a greater say in the process as early as 2021, when the regulation was being developed.

Oviir pointed out that while the ERJK monitors developments in political advertising, this is not their main focus. "The committee deals with advertising, therefore, our job is to check that advertising is paid for in an appropriate way," Oviir said.

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