Brussels, 03/12/2009 (Agence Europe) - On Wednesday 2 December, the European Commission opened a formal investigation into the new tax-based funding system for the Spanish public broadcaster RTVE. Spain is planning to modify the public broadcasting system by abolishing advertising and other commercial activities of RTVE and replacing this source of income by newly introduced taxes on TV and telecommunications operators. The Commission does not object to the modification of the funding system as such, but has doubts concerning the compatibility of the new tax with EU law and whether the new taxes are in line with EU rules on electronic communications networks and services. The opening of a formal investigation allows the Commission to examine the measures more closely and gives interested third parties the possibility to submit comments. It does not prejudge the outcome of the procedure. "The Commission has no problem with abolishing commercials in public TV, but we have to look into the way this reform is financed," commented Neelie Kroes, EU Competition Commissioner.
The new Spanish law (Law 8/2009) of 1 September 2009 provides that advertising, teleshopping, merchandising and pay-as-you-view services at RTVE will be discontinued with immediate effect. Spain intends to compensate RTVE for the abolition of these revenues with specifically dedicated income, generated from two new fiscal measures and one existing measure, in addition to the existing state financing of RTVE: a 3% tax on the revenues of free to air commercial broadcasters and 1.5% on pay-TV broadcasters; a 0.9% tax on the revenues of operators of electronic communications; and 80% of the existing levy on radio spectrum use, up to a maximum of €330 million.
The Commission says it has now to ascertain that the new mechanism of financing RTVE excludes the possibility of overcompensation and that the new taxes, which form an integral part of the aid scheme, are compatible with EU law, particularly the rules on electronic communications networks and services (Directive 2002/20/EC of 7 March 2002). (L.C./transl.fl)