Brussels, 01/09/2009 (Agence Europe) - On Tuesday 1 September, the European Commission authorised payment of state aid of €450 million to France Télévisions in 2009 but at the same time opened a formal investigation to examine whether the funding mechanism for France Télévisions for 2010 and beyond complies with these rules, particularly with regard to the Commission communication on state aid for the funding of public service broadcasters. In the meantime, “continuity of funding for France Télévisions public service is guaranteed”, explained Competition Commissioner Neelie Kroes.
France Télévisions is the largest French broadcasting group and comprises the following channels: France 2, France 3, France 4, France 5, France Ô” and RFO. In 2008 the French authorities launched a far-reaching reform of the public service broadcasting sector with a view to consolidating its specific nature and improving quality. The reform involves the gradual elimination of advertising on public channels and the introduction of two taxes, one on advertisements and the other on electronic communications. It also entails a new set of specifications unique to France Télévisions, which further consolidates its general-interest mission. In a decision of 16 July 2008, the Commission unconditionally approved a €150 million capital injection
After giving notice in January 2009 of plans to pay a subsidy for that year, the French authorities informed the Commission in May that they intended to set up a multi-annual funding mechanism for France Télévisions consisting of funding from the public service broadcasting contribution (previously the television licence) and an annual subsidy, which together would exceed €2 billion by 2012.
The Commission considers that the “definition of the public broadcasting mission vested in France Télévisions and the checks to which it is subject comply with the state aid rules”. Public service channels can thus continue to broadcast diversified programmes for the general public or for a more targeted audience as in the past. The Commission notes that “in no sense does application of the state aid rules imply checks on France Télévisions programming schedules”. In the light of France Télévisions public service broadcasting costs, the Commission approved the immediate payment of a €450 million subsidy for 2009, for which provision had already been made in the Budget Act adopted in December 2008.
However, the Commission has opened a formal investigation into several aspects of funding notified for subsequent years. 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. France will have an opportunity to comment on the Commission concerns and the Commission will also take stakeholders comments into account before taking a final decision. (O.L./transl.rh)