07 December 2009

EU - Commission investigation into funding system for Spanish public broadcaster RTVE

The European Commission has opened a formal investigation under the EU state aid rules 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. In particular, the Commission doubts whether the new taxes are in line with EU rules on electronic communications networks and services.