92000E3654

WRITTEN QUESTION E-3654/00

by Elly Plooij-van Gorsel (ELDR) to the Commission

(23 November 2000)

Subject: Distinction between public and commercial radio stations in planning frequencies

The Dutch Telecommunications Act is structured in such a way that a decision has to be taken on the frequency requirements for public broadcasting before any frequencies can be allocated to commercial broadcasters. To achieve an efficient replanning of the FM band the Dutch government has arranged for zero-base research to be carried out with a view to increasing the frequencies of commercial broadcasting.

On the basis of the results of this research it has been decided to make available FM frequencies for one additional commercial station and to make a considerable increase in the listening range of almost all frequency packages to more than 70 %. The frequency range for public broadcasting (national, regional and local) has priority and is planned on conventional lines which do not result in additional frequency requirements for public broadcasting.

For commercial broadcasting planning involves new methods which considerably increase the frequency range.

Can the Commission look into whether the distinction that is made between public and commercial broadcasting for planning frequency range can have the effect of distorting competition in the commercial market?

Joint answer to Written Questions E-3653/00, E-3654/00 and E-3655/00 given by Mr Monti on behalf of the Commission

(15 February 2001)

As decided by the Court of Justice, public television broadcasting falls within the terms of the EC Treaty and the common market principles, including the rules on competition and state aid. In particular, Article 87(1) (ex-Article 92) of the EC Treaty could apply to public radio broadcasting if all the conditions mentioned therein are met. A State aid may nevertheless be found compatible with the EC Treaty provisions. Furthermore, Article 86(2) (ex-Article 90) of the EC Treaty provides that a State aid can be declared compatible when it is necessary for the realisation of a service of general economic interest.

The importance of public service broadcasting is stated in the Protocol on public service broadcasting, introduced by the Treaty of Amsterdam. The Commission has to take into account this interpretative Protocol. According to the Protocol it is the competence of Member States to define the public service and to provide for the funding for this public service, insofar as the funding does not affect trading conditions and competition in the Community to an extent that would be contrary to the common interest.

The Commission is not able to give a precise opinion at this stage on the specific questions of the Honourable Member but will in due time and in the light of the above assess all implications of the requirements of the EC Treaty for the broadcasting sector. As far as the State aid aspect is concernend, the Commission plans to clarify its position in this context in a communication in the course of this year.