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EC prohibits planned subsidies for digital terrestial TV in Germany - 24/10/07 |
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The European Commission (EC) has decided that the subsidies envisaged for the partial financing of the transmission of commercial broadcasters’ programmes on the digital terrestrial television (DVB-T) network in the German Land of North Rhine-Westphalia are not compatible with the EC state-aid rules.
In a decision of November 2005, where similar subsidies in the Land of Berlin-Brandenburg were declared incompatible with the state-aid rules, the EC provided guidance on possible forms of state support for digitisation. However, the authorities of North Rhine-Westphalia did not abide by these guidelines, and thus, the EC opened a formal investigation in July 2006. But, the authorities of North Rhine-Westphalia failed to demonstrate that the planned financing would elicit a change in the commercial broadcasters’ behaviour. Instead, in the EC’s view, the subsidies would distort competition between terrestrial, cable and satellite transmission. Ms. Neelie Kroes, Commissioner for Competition, stated that: “State support must target specific issues where the market does not provide solutions and must not be discriminatory, in particular between terrestrial, cable and satellite transmission”.
For the full press release, please click here.
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