January 15, 2008

Europe to probe state funding of new media

The European Commission will investigate public service broadcasting's use of new media to determine whether state aid to broadcasters is unfair to commercial competitors. The commission has said it will look into a 2001 set of rules on what subsidies countries are allowed to give to public sector broadcasters. It said an update was needed because new media and digital technologies had changed the media landscape so much. "This implies in particular the need for a clearly defined public service mission as well as a limitation of state aid to what is necessary for the fulfilment of this mission, excluding overcompensation and possible cross-subsidies into commercial activities," a commission statement said. (The Register)