92001E2169

WRITTEN QUESTION E-2169/01

by Jonas Sjöstedt (GUE/NGL) to the Commission

(19 July 2001)

Subject: Interreg project and free competition

TV2, a Danish television channel which is privately owned and financed by advertising and Swedish Television's Sydnytt channel are collaborating on a project using a satellite link for the rapid transmission of television spots between Copenhagen and Malmö. The project has received SEK 12,5 million worth of EU aid (under the Interreg programme) towards a total cost of SEK 25 million.

This has aggravated TV4 Öresund, a rival company, which takes the view that it distorts competition because it improves Sydnytt's quality in terms of local material, something which is becoming increasingly important as digital technology develops.

Does the Commission consider this project to be entirely compatible with the efforts being made to create a Union where the distortion of free competition is not permitted?

Answer given by Mr Barnier on behalf of the Commission

(17 September 2001)

The Community Initiative Interreg, like all Structural Funds programmes, operates in a decentralised manner. Projects are selected for financing by a committee of representatives from the local partnership. All projects selected must conform with the provisions of the Treaty, including the rules on competition and state aids. Ensuring such conformity is the responsibility of the competent authorities in the Member States concerned.

Based on the information available, the Commission has no reason to believe a priori that the project is not in compliance with competition policy. The existence of public support to a private enterprise is not of itself an indication of an infringement provided that such aid lies within the limits laid down by Community competition rules. The Commission will examine carefully any additional information that the Honourable Member or the company concerned may wish to provide.