State TV new media ventures under EU scrutiny

Competition Commissioner Neelie Kroes said: "The new Communication strikes the right balance between the interests of public and private media to ensure healthy competition in the very rapidly evolving media environment, to the benefit of Europe's citizens. Public broadcasters will be able to take advantage of the development of digital technology and Internet-based services to offer high quality services on all platforms, without unduly distorting competition at the expense of other media operators."

Information Society and Media Commissioner Viviane Reding said new rules offer additional legal certainty to the media sector in Europe and ensure a fair competition between public broadcasting and private media. 

"One of the Commission's main objectives is to preserve a vibrant media landscape in the online environment, notably by ensuring that online offers of public broadcasters do not distort competition to the detriment of offers from online services and print media. The Communication adopted today responds to this objective in a clear and efficient way. The European Broadcasting Union welcomed the recognition that defining the remit of public service broadcasters is a national matter, as well as their importance in the new media environment." 

Mr Jean-Paul Philippot, President of the European Broadcasting Union, said: "Public service media must remain a cornerstone of democracy in Europe and must be able to develop in the digital environment for the benefit of their respective societies. There is a real risk that the unique, dynamic function of public service media will be endangered by unduly restrictive regulation - nationally and on the EU level." He said he hopes the Commission will leave member states sufficient flexibility when they introduce ex-ante tests.

Ross Biggam, Director General the Association of Commercial Television (ACT), said there had been strong resistance to the text from national cultural ministries, but the Commission had come up with "a balanced and workable text". 

"It would have been helpful if further details had been maintained, but we understand that in line with the Brussels policy-making process a compromise had to be found. However, the real work will now begin with the implementation of the new obligations contained in this text by the Member States.” 

Angela Mills Wade, Executive Director of the European Publishers Council said: "The ongoing economic crisis puts into stark relief the ever greater need to provide rules for fair competition between commercial and publicly-funded players in the media business. For the private media companies the introduction of ex-ante scrutiny for new ventures which can play havoc with our online and mobile services and the need for an independent control body are the most important milestones, which will help to prevent future distortion of competition in the market. To be truly effective though, and in line with the Amsterdam Protocol control bodies should be independent from the management of the public service broadcaster."