On March 19th, 2009, Neelie Kroes, Commissioner for Competition, delivered a speech on “the forthcoming Broadcasting Communication; measures to promote broadband” in front of the Education, Culture and Science Committee of the Dutch Parliament in The Hague.

She first declared that the European Commission (EC) strongly supports broadband deployment and is working on a draft Communication explaining how EU state aid rules are applied in relation to broadband financing, in order to provide a clear framework to Member States in this sector.

Mrs. Kroes then recalled that, regarding broadcasting, the existing EC 2001 Communication on the application of State aid rules to public service broadcasting (Broadcasting communication) is being reviewed. Since media markets have changed dramatically through technological advances, especially digitalisation, consumption patterns have evolved. Besides, the deployment of next generation broadband networks will accelerate this trend and also increase media convergence.

She also made it very clear that, according to the Treaty, the EC has a say on this subject and that it is its duty to control state aid in the broadcasting sector.

She said that the main points of the current draft deal are technology neutrality when it comes to financing audiovisual media services through state aid and an ex-ante test (the Amsterdam test) implemented at a national level. She underlined the fact that the current draft Communication remains flexible on pay services. She also declared that the Amsterdam test would not be a burden for Member States and that it only aims at assessing “truly new” and “important” services, although “borderlines of the Amsterdam Protocols balancing test are unclear”. She stated that this ex-ante test should be seen as an opportunity rather than as a threat. She added that editorial freedom would not be infringed.

A new draft Broadcasting Communication will be published soon, on the basis of which a new public consultation will take place.

Next steps:

- A new draft will be released soon, launching a new public consultation

Links:

-To access Neelie Kroes’ speech, please click here

- To access the current EC draft Broadcasting Communication, please click here