WARSAW, Poland (AP) -- Poland's president on Monday said he has decided to veto a media bill that would have forced U.S. company Discovery to give up its controlling share in TVN, a Polish TV network.
For many, it was a victory for freedom of speech and media independence in a country where democratic norms are being challenged by the nationalist government. The veto was also expected to be welcomed by Washington, which had been seeking to defend the largest U.S. investment in Poland.
President Andrzej Duda noted that the bill was unpopular with many Poles and would have dealt a blow to Poland's reputation as a place to do business.
"Contracts have to be kept," Duda said at a news conference in Warsaw where he announced his veto. "For us Poles it is a matter of honor."
The bill, recently passed by the lower house of parliament, would have prevented any non-European entity from owning more than a 49% stake in television or radio broadcasters in Poland.
Its practical effect would have targeted only one existing company, Discovery Inc., forcing the U.S. owner of Poland's largest private television network, TVN, to sell the majority or even all of its Polish holdings.
Polish government leaders pushed the legislation and argued that it was important for national security and sovereignty to ensure that no company outside of Europe can control companies that help form public opinion.
Yet many Poles saw the bill, pushed by the ruling Law and Justice party that Duda is aligned with, as an attempt to silence a broadcaster with an all-news station, TVN24, and an evening news program on its main channel viewed by millions.
Mass nationwide protests were recently held in support of the station and of freedom of speech more broadly.
Discovery had threatened to sue Poland in an international arbitration court, saying it would fight for its investment. The network was first bought by another U.S. company, Scripps Networks Interactive, for $2 billion and later sold to Discovery.
It represents the largest ever American investment in Poland and the company now puts TVN's value at $3 billion.
Duda said the bill would have violated the provisions of a Polish-U.S. economic treaty signed in the 1990s, and Poland could have faced possible penalties reaching in the billions of dollars if he had signed it.
Duda said he agreed in principle that countries should limit foreign ownership in media companies, saying many other democratic countries -- including the United States, France and Germany -- have such legislation.
He said that he would support such legislation that would affect future investments. But he argued that in the case of TVN, the law would have hurt a business already operating legally in Poland.
He also said that he shared the view of many of his fellow Poles that given other problems, including the pandemic and inflation, the bill was not necessary right now.