By Anna Wlodarczak-Semczuk and Pawel Florkiewicz

WARSAW, (Reuters) – The president of Poland vetoed a bill on media that critics claimed was aimed to silence a Discovery news channel which is critical about the government. They also cited worries over the impact the law might have on Washington relations.

NATO member Poland is now able to avoid an explosive dispute with the United States. This comes at a time when tensions are high in eastern Europe, and some believe that Russia has increased its assertiveness.

The decision however means that the project, which was voted through Parliament by Law and Justice (PiS), the ruling nationalist Law and Justice party (PiS), has been stopped by an elected president who is their ally.

On Monday, President Andrzej duda stated in a television statement that the law may violate an agreement on economic and commercial relations between the United States and Poland.

He stated that “one of the arguments during the analysis of this law was to the issue of an International Agreement, which was concluded in 1990… This treaty talks about investment protection.”

“There’s a clause that says media-related investments can be excluded. However, it applies to future investments.

Duda had been urged by the United States to exercise his right of veto. Bix Aliu (US charge d’affaires in Warsaw), thanked Duda on Twitter for his leadership and dedication to the common democratic values as well as for protecting Poland’s investment climate.

The bill was unintentionally passed through parliament in a hurry this month. It tightened the rules regarding foreign media ownership, specifically affecting TVN24’s ability to operate, which is owned by Discovery (NASDAQ 🙂 Inc.

Discovery is the parent of TVN24. It has registered a Netherlands firm to own TVN24. This was done in order for a ban against non-European entities owning over 49% of Polish media firms. This workaround would not have been possible without the law that sparked protests across the country.

MEDIA FREEDOM

Discovery released a statement saying that this was a win for Polish citizens. We commend President Obama for standing up to the democratic principles of free speech and rule of law, and we applaud him for that.

Anita Czerwinska spoke on behalf of PiS, saying that she was disappointed by the state-run news agency PAP.

She was quoted saying, “We believe that the media law needs clarification in order to ensure the law applies in accordance with the exact practice in other countries.”

The president could be overthrown by Parliament, however PiS is not qualified to vote.

PiS has long maintained that foreign media organizations have too much power and influence in Poland. This is a distortion of public discussion.

But critics claim they seek to restrain media freedom, and that the moves against them are part of an increasingly autoritarian agenda which has placed Warsaw in conflict with the European Union.

Duda indicated that while he agrees with the principle of limiting foreign ownership in media is sensible, he said any regulation must be applied to future investments and not just current owners.