European Commission to Investigate France Télévisions Funding

BRUSSELS, September 2: Announcing the payment of a 450 million euros subsidy to France Télévisions, the European Commission also revealed that it is opening a formal investigation into the pubcaster’s funding mechanisms.

The Commission is looking into whether or not funding for France Télévisions for 2010 and beyond complies with state-aid rules. The overhaul of public broadcasting in France includes the elimination of advertising on France Télévisions and the introduction of two new taxes. The commission says it is "concerned about the use made of the taxes introduced by the reform and possible overcompensation for public service costs up to 2011‑2012."

“The decision of France Télévisions to place greater emphasis on its general-interest mission as part of the reform of public-service broadcasters is in line with the policy of media plurality which the European Union supports," said Competition Commissioner Neelie Kroes. "The Commission has embarked today on a detailed review of this reform and it calls on stakeholders to submit their comments before a final decision is taken. In the meantime, continuity of funding for France Télévisions’ public service is guaranteed.”