The Executive Yuan was reportedly making plans to lift the ban on media investment, allowing political parties, government agencies and the military to indirectly hold up to a 10 percent ownership share in TV media companies.

But the news soon drew criticisms from scholars as well as officials from the Ruling party.

The Executive Yuan planned to lift the ban on political parties, government agencies and the military from investing in TV media companies but allow each of the groups to indirectly hold up to a 10 percent ownership share in media companies.

As the move could revive public debate on just how large a role the government and political parties should play in the media, KMT secretary-general King Pu-tsun quickly expressed his opinion with the Presidential Office and the Executive Yuan.

Premier Wu Den-yih then stopped the revision process.

The National Communications Commission decided to propose the revision for the digital convergence industry.

The current act also led to mobile operator Taiwan Mobile Company being placed under scrutiny as one of its major investors was Taipei Fubon Bank, partly owned by the Taipei City Government.

Whether the act is outdated is a controversial issue. But media reform scholars oppose the revision, on the belief that direct or indirect ownership share would compromise media neutrality.

Given the sensitive timing of approaching elections, the KMT central worries the issue would be played into a political one. So the Executive Yuan pulls a break immediately.

Scholars believe there's room for the revision of the Satellite Broadcasting Act, but it should be on the premise of that the government creates a better environment for media outlets, which are more transparent and better serve public interests.

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