Brussels, 24/07/2006 (Agence Europe) - The European Commission has opened an inquiry into subsidies granted to commercial broadcasters for the use of the digital terrestrial television (DVB-T) network in the German Länder of Bavaria and North Rhine-Westphalia. The Commission will investigate whether these subsidies threaten to distort competition. This follows an earlier inquiry into similar subsidies granted in the Land of Berlin-Brandenburg, which the Commission ruled illegal in November 2005 (see EUROPE 9066). The media authorities of Bavaria (BLM) and North Rhine-Westphalia (LfM) plan to grant subsidies of €2.4 million and €6.8 million respectively to commercial broadcasters, such as ProSiebenSat.1 and RTL, to meet part of their transmission costs via the DVB-T network. The subsidies would be paid for four years in Bavaria and for five years in North Rhine-Westphalia. The DVB-T network was launched in May 2004 in North Rhine-Westphalia and in May 2005 in Bavaria. In both Länder, the commercial broadcasters have been present in the DVB-T network since its launch. In its decision of November 2005 on similar subsidies granted in Berlin-Brandenburg, the Commission explained how it assesses subsidies for the transition from analogue to digital TV and gave indications on how digital TV could be supported.
Over recent months, the Commission has adopted two decisions, in addition to the Berlin-Brandenburg one, on similar aid in Austria and the United Kingdom. In two other cases, concerning Sweden and Italy, formal investigations are ongoing.