Brussels, 25/10/2005 (Agence Europe) - The European Commission has opened a formal investigation on public funding for a fibre access network in the Dutch town of Appingedam. The town already has a glass fibre access network and, following local court action by a Dutch cable operator end 2004, the Dutch authorities decided to notify the measure to the European Commission in spring 2005. After a preliminary assessment, the Commission has doubts about the compatibility of the project with EU state aid rules as public funding might distort competition in the market for electronic communications and have a negative impact on existing private infrastructure investment. Given these doubts and the implications that it would have on similar projects in Europe, the Commission has therefore decided to carry out a more in-depth examination. This is the first time that it will have to give its opinion on public support in favour of a broadband infrastructure development project. In the past, it had been in favour of public funding for the regions where broadband service was not available at all or was only available in areas of high population density to the detriment of the rural or outlying areas. Public support was then fully justified in that it helped the development of disadvantaged areas. “Public support for broadband communications can bring benefits to citizens and businesses and improve economic competitiveness. (…) However (…) I am not convinced that the Appingedam project is either necessary or proportionate given the existing infrastructure for the delivery of broadband services”, Competition Commissioner Neelie Kroes said. Details of the Dutch project will be published in the EU's Official Journal, allowing interested parties to provide the Commission with their comments.