European Commission Updates Rules on Pubcaster Funding

BRUSSELS: The European Commission today unveiled new rules for the funding of public-service broadcasters with a view to ensuring healthy competition in the media sector.

The new framework replaces the Commission’s 2001 Broadcasting Communication and promises more accountability at the national level and a transparent evaluation of publicly funded new-media services. It is in response to concerns from commercial broadcasters that their state-funded counterparts have an unfair advantage when it comes to rolling out new services, particularly in the digital arena. A statement from the Association of Commercial Television this morning noted: "In the EU 27, state aid to broadcasting is estimated as being worth at least 22 billion euros per year. In the current economic environment, it is of ever greater importance that the European Union rules on state aid are rigorously applied so as to ensure that those private sector companies who do not seek public support are not unfairly disadvantaged."

The updated rules include an assessment of the public value of new services from pubcasters; clarification concerning the inclusion of pay services in the public-service remit; greater accountability and transparency when it comes to how state funding of public broadcasters is used; and increased financial flexibility for public broadcasters,

Neelie Kroes, the Competition Commissioner, stated: "The new Communication strikes the right balance between the interests of public and private media to ensure healthy competition in the very rapidly evolving media environment, to the benefit of Europe’s citizens. Public broadcasters will be able to take advantage of the development of digital technology and Internet-based services to offer high-quality services on all platforms, without unduly distorting competition at the expense of other media operators."

Viviane Reding, the Information Society and Media Commissioner, added: "The adoption of this Communication will give additional legal certainty to the media sector in Europe and ensure a fair competition between public broadcasting and private media. One of the Commission’s main objectives is to preserve a vibrant media landscape in the online environment, notably by ensuring that online offers of public broadcasters do not distort competition to the detriment of offers from online services and print media. The Communication adopted today responds to this objective in a clear and efficient way."

With 22 billion euros each year secured from license fees and direct government aid, European pubcasters are ranked third on the list of entities receiving the most government aid, following the agricultural and transport sectors.