Deense publieke omroep TV2 moet staatssteun terugbetalen (en)

The analysis carried out in today's decision is in line with earlier

decisions of the Commission on RAI (Italy), France 2 and 3 (France) and RTP

(Portugal).

The Commission assessed the State measures in accordance with the principles

of the "Communication on the application of state aid rules to public

service broadcasting".

The in-depth investigation was launched in January 2003 following initial

investigations made by the Commission based on a complaint from one of the

commercial broadcasters active on the Danish market. The complainant's

concerns were mainly raised against TV2's behaviour in the advertising

market and the different financing mechanisms that TV2 is benefiting from.

TV2 has benefited from a number of different State measures. In addition to

licence fee resources, TV2 has received interest and instalment free loans,

State guarantees for operating loans, a corporate tax exemption, ad-hoc capital

transfers as well as access to a transmission frequency with national coverage

on favourable terms.

TV2 is engaged in commercial activities and receives the major part of its

income from advertising. Other commercial activities of TV2 include sale of

programmes, exploitation of internet sites, purchase of programmes rights etc.

TV2 can also establish new companies or invest capital in existing

companies.

In line with the decision to open formal investigations of January 2003,

today's final decision covers the period 1995-2002.

The Commission is aware that in 2003 TV2 has been converted from a public

institution into a limited liability company. The new status requires the

company to establish a certain amount of equity capital, which it previously did

not need.

The Commission believes that any capital injection should be carried out in

an operation that is entirely separate from the compensation payments for the

fulfilment of public interest tasks. It should also be carried out under market

terms. The Commission is presently discussing with the Danish State how such

terms could be met.

Today's decision confirms that, although the Commission accepts a broad

public service broadcasting remit, it does not accept structural excess

compensation of the cost of providing the public service. Excess compensation

raises serious concerns when a public broadcaster also carries out commercial

activities, as it unduly favours the public broadcaster compared to competitors

that do not receive any State funding. In these circumstances, excess

compensation can allow the beneficiary to depress prices in commercial markets

to levels not attainable to those competitors that do not receive State aid.

The Commission accepts TV2's broadly defined public service

broadcasting task as a service of general economic interest (SGEI). Under this

task, TV2 broadcasts a mix of programmes on culture, sport, entertainment and

news on several television channels.