STATE AID – CZECHIA

State aid SA.64153 (2022/C) (ex 2021/N) – Aid for terrestrial television parallel broadcasting in DVB-T2/HEVC

Invitation to submit comments pursuant to Article 108(2) of the Treaty on the Functioning of the European Union

(Text with EEA relevance)

(2022/C 282/03)

By means of the letter dated 3 June 2022 reproduced in the authentic language on the pages following this summary, the Commission notified Czechia of its decision to initiate the procedure laid down in Article 108(2) of the Treaty on the Functioning of the European Union concerning the abovementioned measure.

Interested parties may submit their comments on the measure in respect of which the Commission is initiating the procedure within one month of the date of publication of this summary and the following letter, to:

European Commission Directorate-General Competition State aid Greffe 1049 Bruxelles/Brussel BELGIQUE/BELGIË Fax + 32 22961242 Stateaidgreffe@ec.europa.eu

These comments will be communicated to Czechia. Confidential treatment of the identity of the interested party submitting the comments and/or of parts of the comments submitted may be requested in writing, stating the reasons for the request.

TEXT OF SUMMARY

The present formal investigation concerns a notified measure aiming to compensate the costs incurred by digital terrestrial television (DTT) platform operators holding rights of use of frequencies for investing in DVB-T2/HEVC networks and operating parallel broadcasting. The Commission received in that regard two complaints, one from an association representing providers of television services via satellite and one from a provider of television services via satellite and internet. The complainants claimed that the Czech plan to support financially the transition to DVB-T2/HEVC would constitute a benefit to DTT operators that risks unduly distorting competition to an extent contrary to the common interest.

The beneficiaries are the Czech public service broadcaster Česká televize and two private operators, Digital Broadcasting and Ceske Radiokomunikace. The budget of the measure amounts to approximatively EUR 18 million (CZK 473 391 429). The eligible costs include capital and operating expenditure relating to upgrading the infrastructure from DVB-T/MPEG-2 to DVB-T2/HEVC standards and operating the upgraded networks in parallel of the original networks. Parallel broadcasting took place between 1 March 2017 and 31 October 2020 (the actual length of parallel broadcasting for each transmitter being determined by the national framework). Aid for capital expenditure is based on the average monthly depreciation value of each of the eligible cost items multiplied by the number of months of parallel broadcasting per transmitter, per multiplex. Aid for operating expenditure is based on the average cost per transmitting site for the considered period of parallel broadcasting. The Radio-communication account administered by the Czech Telecommunication Office will finance the measure. The measure does not cover costs for adapting the frequency-related equipment, which are subject to the Commission Decision SA.55742 of 23 January 2020 (1), or the costs incurred between 19 March and 30 June 2020, which are covered by the Commission Decision of 13 July 2021 (2).

The Czech authorities have confirmed that the aid has not been paid out, pending the Commission’s final decision.

The aid measure takes place in the context of the release of the 700 MHz band, as provided in Decision (EU) 2017/899 of the European Parliament and of the Council (EPaC Decision) (3). Czechia explained that, considering the national characteristics, migrating terrestrial television services from the 700 MHz band required refarming frequencies and re-engineering broadcasting networks as well as transitioning them to more efficient standards, such as DVB-T2/HEVC. In that context, Czechia considered it necessary for DTT operators to simulcast terrestrial television programs on the original DVB-T/MPEG-2 networks and on the upgraded DVB-T2/HEVC networks so to allow market operators to undertake the changes and end-users to adapt their reception devices.

Czechia considers that the measure constitutes aid within the meaning of Article 107(1) TFEU. The Commission has at this stage no reason to conclude differently on that matter.

Czechia considers that the measure is compatible with Article 107(3)(c) TFEU.

After carrying out the preliminary examination of the measure, the Commission is at this stage not in a position to conclude on the compatibility of the measure with the internal market. In particular, the Commission is not convinced that the measure has an incentive effect. On the one hand, the migration process entailed technical improvements and the DTT operators have asked for the prolongation of their rights of use until 2030. On the other hand, DTT operators seem to have started the investment in parallel broadcasting in DVB-T2/HEVC, in March 2017, before Czechia formalised the details of the migration process or that of the aid measure. Furthermore, the Commission is not convinced that the measure is necessary. First, it cannot be excluded that the platform operators would have borne themselves the costs of investment in and operation of DVB-T2/HEVC transitional networks. Second, even if it were demonstrated that the operators would not have undertaken the project on their own, the Commission is not convinced that all eligible costs may qualify as direct costs, as referred to in the EPaC Decision (Article 6) in relation to possible compensation. Moreover, the Commission is not convinced that the measure is the most appropriate to ensure a seamless migration for households, as alternative methods to reach the objective exist, for example a certification of TV sets or information campaigns, aid to end-users, the adoption of regulatory measures or compensation for the early withdrawal of the rights of use. Finally, the Commission is not convinced that the measure is proportionate, i.e. whether the length of simulcast was limited to the minimum necessary and whether the calculation of the aid amount on the basis of monthly depreciation ensures that the aid is kept to the minimum necessary.

Given its doubts as to the compatibility of that aid with the internal market, the Commission has decided to initiate the procedure laid down in Article 108(2) TFEU with respect to the measure in question.

TEXT OF LETTER

(1) State Aid SA.55742 (2019/N) — Czech Republic, Aid for the replacement of the frequency-dependent equipment for broadcasting in the context of migration from the 700 MHz band, 23 January 2020 (OJ C 144, 30.4.2020, p. 1).

(2) State Aid SA.60062 (2021/N) — Czechia, COVID-19: Aid for the extraordinary direct costs faced by Czech terrestrial television network operators, 13 July 2021 (OJ C 317, 6.8.2021, p. 1).

(3) Decision (EU) 2017/899 of the European Parliament and of the Council of 17 May 2017 on the use of the 470-790 MHz frequency band in the Union (OJ L 138, 25.5.2017, p. 131).

(4) DVB-T2 is the second generation of Digital Video Broadcasting — Terrestrial standard. DVB-T2 offers significant benefits compared to DVB-T, in particular a more efficient use of the spectrum.

(5) HEVC stands for High Efficiency Video Coding and is one of the latest generation of video compression standards.

(6) Actual length of parallel broadcasting for each transmitter is determined in the Technical Transition Plan.

(7) Regulation No 1 determining the languages to be used by the European Economic Community (OJ 17, 6.10.1958, p. 385).

(8) Decision (EU) 2017/899 of the European Parliament and of the Council of 17 May 2017 on the use of the 470-790 MHz frequency band in the Union (OJ L 138, 25.5.2017, p. 131).

(9) Decision 243/2012/EU of the European Parliament and Council of 14 March 2012 establishing a multiannual radio spectrum policy programme (OJ L 81, 21.3.2012, p. 7).

(10) EPaC Decision, recital (13).

(11) Proposal for a Decision of the European Parliament and of the Council on the use of the 470-790 MHz frequency band in the Union, 2.2.2016.

(12) Article 4 of the EPaC Decision states that ‘Member States shall ensure availability at least until 2030 of the 470-694 MHz frequency band for the terrestrial provision of broadcasting services (…)’.

(13) Article 6 of the EPaC Decision states that ‘Member States may, where appropriate and in accordance with Union law, ensure that adequate compensation for the direct cost, in particular for end-users, of the migration or reallocation of spectrum use is provided promptly and in a transparent manner in order to, inter alia, facilitate transition to more spectrum-efficient technologies’.

(14) Reference is made to that Strategy in Market failure study of digital terrestrial broadcasting with forced release of the 700 MHz frequency band, Arthur D. Little for the Czech Ministry of Industry and Trade, 2017, (the ‘ADL Study’), p. 23 of the translated version submitted by Czechia on 14.10.2021.

(15) Digitální Česko 2.0, Cesta k digitální ekonomice, available here https://www.vlada.cz/assets/media-centrum/aktualne/Digitalni-Cesko-v--2-0_120320.pdf, p. 21.

(16) Resolution of the Government of the Czech Republic no648 of 20 July 2016.

(17) Strategy for the development of digital terrestrial television, Executive Summary, unofficial translated version, p. 1.

(18) The trends include the following: (i) linear broadcasting will remain the predominant television consumption, (ii) the quality of the image and sound and the upgrade of the transmission and compression technologies will keep improving and (iii) the terrestrial television services will converge with other technologies, in particular via internet. 2016 Strategy, p. 13 et seq. of the unofficial translated version of the Executive Summary.

(19) 2016 Strategy, Executive Summary, p. 3 of the unofficial translated version.

(20) 2016 Strategy, Executive Summary, p. 7 of the unofficial translated version.

(21) 2016 Strategy, Executive Summary, p. 12 of the unofficial translated version.

(22) 2016 Strategy, Executive Summary, p. 14 of the unofficial translated version.

(23) 2016 Strategy, Executive Summary, p. 3, p. 15, p. 16 of the unofficial translated version.

(24) 2016 Strategy, Executive Summary, p. 17 of the unofficial translated version.

(25) 2016 Strategy, Annex 1, p. 32 of the unofficial translated version.

(26) The Government Resolution no648/2016 calls on the Government to prepare the legislative and other acts necessary for the implementation of the Strategy.

(27) 2016 Strategy, Annex 2, section E.

(28) 2016 Strategy, Annex 1, p. 53 and 54 of the unofficial translated version.

(29) The 2016 Strategy indicates that some basic costs relate to, for instance, new DVB-T2 headends, transmitters, etc. It further indicates that the types of costs could be specified later in the light of the specific configuration of the DVB-T2 networks, on the basis of the views and evidence provided by the DVB-T2 network operators, and that the list does not yet include other possible costs related to the modification of transmission stations.

(30) The 2016 Strategy indicates that the first estimate assumes the use of the existing infrastructure of the current transmission sites and does not include the investment costs related to the possible rental or purchase of land and buildings, with the construction readiness of the technology rooms. It clarifies that the investment cost estimate does not include the costs of operating, maintaining and systems service.

(31) The 2016 Strategy states that the costs depend substantially on the length of the simulcast (not determined at that point in time) and that they include only the depreciation of the incremental assets related to the construction of the transition networks.

(32) Costs that are considered to have been incurred in the past, but which, due to the reduction of investment horizons (recovery), will lead to their early depreciation.

(33) EUR 17-25 million (EUR 1 = CZK 25.634 on 3 March 2022 (https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/eurofxref-graph-czk.en.html)).

(34) 2016 Strategy, Annex 2, section E.

(35) This measure was approved by Commission Decision SA.55742 of 23 January 2020 (OJ C 144, 30.4.2020) (the ‘Commission Decision of 23 January 2020’).

(36) Section 27(5) regulates the process for assessing claims submitted by right holders for reimbursement of costs.

(37) Section 27(6) lists the types of costs for which reimbursement may be claimed. It concerns: a) the costs of technical adjustments to equipment in the event of changes to the allocated radio frequency or changes to its technical parameters; b) the depreciated cost of equipment used for the current method of using radio frequencies and decommissioned as a result of changes in the use of radio frequencies; c) the costs of dismantling and decommissioning of equipment for the current method of using radio frequencies; d) the costs of installation and commissioning equipment to replace the decommissioned equipment; and e) the costs of securing electronic communications services provided through the existing radio frequencies in a different manner, for the time needed to ensure the necessary technical measures to carry out the changes in the use of radio frequencies. Paragraph 7 of Article II of the Digital Amendment clarifies that costs incurred in the process of the transition process of elimination of harmful interferences with the terrestrial digital television broadcasting signal by networks providing mobile data connection services or elimination of interference with mobile data connection service networks by the terrestrial television broadcasting service shall be considered costs pursuant to Section 27(6) of ECA.

(38) Study of digital terrestrial broadcasting market failure as a result of the forced release of the 700 MHz frequency band, study conducted for the Ministry of Industry and Trade by Arthur D. Little s.r.o., 15 May 2017 (‘ADL study’).

(39) Section 4.5.1. of the ADL study. The study indicates that the costs were estimated by Arthur D. Little s.r.o. on the basis of supporting documents provided by the DTT operators. It lists the following costs categories: (i) one-off retuning of existing networks from T to DVB-T2 (main transmitters, transmitters and receivers for the secondary network), measurement of the coverage (measurement in terrain, before and after launching additional covering devices and retuning of existing networks), acquisition of clusters for gradual retuning; (ii) the net book value of DVB-T technologies that cannot be used for DVB-T2 networks by the time of termination of the existing broadcasting networks; (iii) dismantling of DVB-T technologies that cannot be used for DVB-T2 networks by the time of termination of existing broadcasting networks; (iv) costs related to replacing the technology in existing networks to meet DVB-T2 standards (modification of transmitters, headends, etc.), modification of the distribution to headends, adaptation of single frequency network; (v) costs related to ensuring the operation of transition networks up to the termination of broadcasting in DVB-T format, including individual technologies (transmitters, headends, additional coverage devices), strengthening of optical data flows, fees for frequencies and energy, supervising systems, etc.; (vi) transition costs for removing of interference to mobile networks by DVB-T2 transition networks up to the time of the release of the 700 MHz band for wireless broadband connection.

(40) The CTO announced the extension of the rights of use of radio-frequency of Digital Broadcasting (https://www.ctu.cz/sdeleni-o-vydani-rozhodnuti-o-zmene-pridelu-radiovych-kmitoctu-pro-zajisteni-verejne-site-0) and of Česká televize (https://www.ctu.cz/sdeleni-o-vydani-rozhodnuti-o-zmene-pridelu-radiovych-kmitoctu-pro-zajisteni-verejne-site) on 30 September 2019, and of Czech Digital Group (https://www.ctu.cz/sdeleni-o-vydani-rozhodnuti-o-zmene-pridelu-radiovych-kmitoctu-pro-zajisteni-verejne-site-2) and of CRa (https://www.ctu.cz/sdeleni-o-vydani-rozhodnuti-o-zmene-pridelu-radiovych-kmitoctu-pro-zajisteni-verejne-site-1) on 21 November 2019.

(41) Commission Decision of 15 March 2021 C(2021)1601 final, SA.55805 (2020/FC) — Extension of DTT network operators’ frequency licences — Czechia (OJ C 177, 7.5.2021, p. 1), under appeal.

(42) Government Decree No. 199/2018 Coll. of 29 August 2018, on the Technical plan for the transition of digital terrestrial television from DVB-T standard to DVB-T2 standard.

(43) Those costs were the following: (i): the direct depreciation charges from CAPEX directly linked to the interruption and suspension of the switching off phase (transmitters, uninterruptible power supply, converters, GPS receivers antenna power supplies, installation and installation material, cooling system and its installation, distribution, measuring equipment, head end) and (ii) the direct operating costs directly linked to the interruption and suspension of the technical switching period (electric energy consumption, property rentals, transmission routes, equipment maintenance and/or repairs, uninterruptible power supply, adjusting the electrical connections by building owners, direct legal costs for adjusting the contracts due to the interruption of the migration process). See recital (19) of Commission Decision of 13 July 2021.

(44) State Aid SA.60062 (2021/N) — Czechia, COVID-19: Aid for the extraordinary direct costs faced by Czech terrestrial television network operators (OJ C 317, 6.8.2021, p. 1).

(45) ADL Study as updated on 2 August 2019, p. 11 of the English version of the updated study provided by Czechia.

(46) CRa was part of Macquarie, a global financial group, from 2011 to May 2021 when Macquarie sold it to its current owner, another financial investor, Cordiant.

(47) Čzeská televize is the Czech public broadcaster in Czechia.

(48) Before their prolongation until 2030, the rights of use of frequencies were to expire on 11 May 2021 for CRa, on 4 March 2022 for Digital Broadcasting, on 30 May 2023 for Česká televize and on 10 January 2024 for CDG.

(49) The obligations are the followings: 99,9 % of inhabitants for Česká televize and CRa, 98,1 % for CDG and 95,1 % for DB.

(50) That means that with the same amount of spectrum, a larger number of programs can be broadcast or the same number of programs broadcast with a higher audio/video quality or coverage quality. For more details on the technical parameters of DVB-T2 systems, see notably EBU, Tech 3348, Frequency and network planning aspects of DVB T2, October 2014, p. 8.

(51) It is the successor of notably the MPEG-2 and MPEG-4 video compression standards. MPEG-2 and MPEG-4 allow a less efficient video compression rate. That means that the same video, transmitted in an equivalent transmission system, would take more space if it is compressed in MPEG-4 format compared to HEVC, and even more if it is compressed in MPEG-2 format.

(52) It is not clear if the television programs that are broadcast on the original DVB-T networks are the same and have the same quality as those broadcast on the transitional DVB-T2 networks. For instance, it seems that transitional network 13 included four programs broadcast in high-definition: JOJ Family HD, Prima Comedy Central HD, Polar HD, V1 HD, as compared to none on the original DVB-T network.

(53) The capacity used amounted to 61.6 Mbit/s.

(54) Pursuant to the English version of the Digital Amendment provided by Czechia, the amendment states: ‘Where proceedings are conducted before the Commission regarding state aid in relation to determination of the amount or payment of effectively and efficiently incurred costs, it shall be considered a request for preliminary ruling’.

(55) The length of that period is specific to each transmitter for each multiplex.

(56) Uninterruptible power supply (UPS) corresponds to a backup power supply based on battery systems. It is an electrical apparatus that provides emergency power when the input power source or mains power fails.

(57) Czechia indicated that the lifespan in accounting records should reflect the reality, according to the Czech law (Act No563/1991 Coll. on accounting).

(58) These durations are the following. Transmitters: 5 years. Converters: 5 years. Antenna power supplies: 5 years. Multiplexors: 3 to 5 years, depending on the element. Head-end: 5 years for coders and racks; 3 years for switches and servers. Cooling equipment: 10 years. Measuring equipment: 3 years. GPS receivers: 5 years. UPS: 10 years.

(59) EUR 1 = CZK 25.634 on 3 March 2022 (https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/eurofxref-graph-czk.en.html).

(60) The complainant refers to the 2016 Strategy, p. 72, which also includes: equipping social facilities with appropriate television sets or set-top box, spectrum management costs, treatment of DTT interference by LTE.

(61) DIGI s.r.o./Telly indicated that it undertook a transition from DVB-S/MPEG-2 broadcasting format to DVB-S2/MPEG-4 in 2015 and 2016. It explained that one of the significant operating costs were linked to simulcast costs incurred as a result of parallel broadcasting in DVB-S and DVB-S2 standards from October 2015 until September 2016. Capital expenditure covered primarily purchases of new DVB-S2/MPEG-4 compatible customer premises equipment. A member of ČASO explained that it upgraded its broadcasting from DVB-S/MPEG-2 to DVB-S2/MPEG-4 between 2012-2016. It incurred transition costs, notably for satellite capacity for simulcasted content.

(62) They also refer to the intention of the Czech authorities to deploy two additional multiplexes. The complainants provided assumptions but did not provide a detailed overview of how the available frequencies could be used.

(63) CRa annual report, 2011, indicates: ‘with new technologies such as DVB-T2 and DAB, our main objective in the coming years is to develop terrestrial television and radio broadcasting and to enable the introduction of new services such as high-resolution TV, pay-TV or digital radio’, available at: https://or.justice.cz/ias/ui/vypis-sl-detail?dokument=16841858&subjektId=32316&spis=87330. Article Nabídka bezplatných TV se uzavírá, přijde placená televise (‘The free offer of TV is over, now paid TV will come’), from mediaguru.cz, available at: https://www.mediaguru.cz/clanky/2012/08/nabidka-bezplatnych-tv-se-uzavira-prijde-placena-televize/

(64) According to a press article, the switch from MPEG-2 to HEVC would entail a change in image resolution, which has an impact for the production and broadcasting of content, see here https://www.parabola.cz/clanky/6577/jak-levna-je-draha-pozemni-tv/ (accessed on 16 May 2022).

(65) One of the complainants indicated that the TV channel TUTY TV had to switch-off because of the upgrade to DVB-T2 and the costs’ increase. See for instance: https://www.broadbandtvnews.com/2019/03/12/czech-kids-channel-closes/ (accessed on 4 March 2022).

(66) The complainants argued that, would the change of transmission standards (DVB-T2/HEVC) have been made after the expiration of the rights of use, right holders would not have been entitled to claim that their rights have been amended. If those rights would have expired, such changes would not have been necessary, and hence, there would not have been a right to compensation.

(67) Offer DIGI TV card.

(68) The measure does not include compensation for the period from 19 March to 30 June 2020.

(69) The ADL study submitted by Czechia identifies the following market failures: (i) imperfect competition (the release of the 700 MHz band would be detrimental to the DTT operators, and the end-viewers, and would give a major advantage to alternative platforms); (ii) externalities (the release of the 700 MHz band leads to additional costs to DTT operators and end-viewers but no benefit); (iii) public good (the release of the 700 MHz band restricts spectrum, which is a public good and which is used for dissemination of terrestrial broadcasting).

(70) SFNs are networks that transmit over a single frequency in a given area. The bigger the SFNs, the bigger the area covered with fewer frequencies.

(*1) This network has been entirely financed by the terrestrial television platform operator operating it. No cost items related to this network are included in the measure.

(71) The Czech authorities refer to the study entitled Economic and Social Impact of Repurposing the 700 MHz band for Wireless Broadband Services in the EU (EC Final Report, 2016), p. 6 which states: ‘Our analysis of the current frequency assignments for television services in the UHF band has shown that, without extensive negotiations between neighbouring countries (which are beginning to take place), it is not possible to replicate the existing services, coverage and quality without the use of the 700 MHz band. The only way to continue to provide the services is to migrate to newer, more efficient broadcast technologies or video compression standards (such as DVB-T2 and MPEG-4 or HEVC)’. Czechia also mentions the Lamy Report (pp. 15, 25), the RSPG15-595 Final (2015) Report and the Impact Assessment Accompanying the document SJ-032 Proposal for a Decision of the European Parliament and of the Council on the use of the 470-790 MHz frequency band in the Union.

(72) Videos are less compressed with MPEG4-.

(73) Czechia explained that the offer of DVB-T2/HEVC equipment began to appear around 2015 and that the deployment and operation of the transitional DVB-T2 networks, in March 2017, clearly indicated to viewers that DVB-T2/HEVC would be the future DTT platform.

(74) See for instance Commission Decision of 5 April 2016, C(2016) 1973 final, SA.42680 (2015/N) — France, Régime d’aides visant à l’instauration d’un dispositif d’accompagnement temporaire de certains foyers perdant la réception de la télévision par voie hertzienne terrestre lors des opérations de libération de la bande 700 MHz au profit des services mobiles (OJ C 142, 22.04.2016). See also Commission Decision of 12 April 2019, SA.51079 (2018/N) — Spain, Audiovisual broadcasting reception aid for multi-households buildings (OJ C 19, 7.6.2019). See also Commission Decision of 10 September 2019, C(2019) 6334 final, SA.53376 (2019/N) — Italy, Liberation of the 700 MHz band — Reception aid to low-income households (OJ C 354, 18.10.2019).

(75) In case of subsidies to 50 % of the Czech households (paying the public broadcasting concession fee, so which would need a set-top box according to Czechia) and a voucher of EUR 50.

(76) Czechia estimates the households needing social assistance to be 22 % of the households paying the concession fee.

(77) ‘Where Member States intend to maintain DTT, the national roadmaps should consider the option of facilitating upgrades of broadcasting equipment to more spectrum-efficient technologies, such as advanced video formats (e.g. HEVC) or signal transmission technologies (e.g. DVB-T2).’

(78) ‘The scope of and mechanism for possible compensation for completing the transition in spectrum use, in particular for end users, should be analysed in accordance with the relevant national provisions […] in order, for example, to facilitate the transition to more spectrum-efficient technologies.’

(79) Judgment of 11 July 1996, SFEI and Others, C-39/94, ECLI:EU:C:1996:285, paragraph 60; Judgment of 29 April 1999, Spain v Commission, C-342/96, ECLI:EU:C:1999:210, paragraph 41.

(80) Judgment of 26 April 2018, Cellnex Telecom SA and Telecom Castilla-La Mancha SA v Commission, C-91/17 and C-92/17 P, ECLI:EU:C:2018:284, paragraph 111.

(81) Judgment of 30 June 2016, Belgium v Commission, C-270/15 P, ECLI:EU:C:2016:489, paragraphs 35-36.

(82) Judgment of 1 July 2010, M6 and TF1 v Commission, T-568/08 and T-573/08, ECLI:EU:T:2010:272, paragraph 123.

(83) Decision C(2018)8356 final of 12.12.2018, SA.47258 (2017/N) — Germany, Spectrum migration of DTT platforms resulting from the liberation of the 700 MHz band (‘Commission Decision SA.47258’), https://ec.europa.eu/competition/state_aid/cases/271860/271860_2038548_133_2.pdf; Decision of 2.8.2019, SA.51080 (2018/N) — Spain, Audio-visual broadcasting transmission aid for audio-visual service providers (‘Commission Decision SA.51080’), https://ec.europa.eu/competition/state_aid/cases1/201934/279519_2089801_104_2.pdf

(84) Ex multis, judgment of 30 June 2016, Belgium v. Commission, C-270/15 P, ECLI:EU:C:2016:489, paragraph 50.

(85) Judgment of 4 April 2001, Regione Friuli Venezia Giulia v Commission, T-288/97, ECLI:EU:T:2001:115, paragraph 41.

(86) Pursuant to the translated version of the Digital Amendment provided by the Czech authorities, it states: ‘Where proceedings are conducted before the Commission regarding state aid in relation to determination of the amount or payment of effectively and efficiently incurred costs, it shall be considered a request for preliminary ruling’.

(87) Paragraph II, 1. c) of the Resolution of the Government of Czech Republic no648 of 20 July 2016.

(88) Article II, paragraph 6 states: ‘a holder of radio frequency allocation for nationwide networks in the DVB-T standard is entitled for reimbursement of costs effectively and efficiently incurred in the process of transition to the DVB-T2 standard to technically ensure the service of transmission of terrestrial television broadcasting using transitional networks, and costs associated with the change in allocation under subpar. 5’. Following paragraph 7 states: ‘Transitional network operators under subpar. 3 and holders of allocations of radio frequencies under subpar. 5 are entitled to the reimbursement of costs effectively and efficiently incurred in the process of the transition process of elimination of interference with the terrestrial digital television broadcasting signal by networks providing mobile data connection services or elimination of interference with mobile data connection service networks by the terrestrial television broadcasting service.’

(89) Article II, paragraph 8.

(90) Czechia indicated that no costs have been incurred before 1 March 2017.

(91) Judgment of 19 December 2019, Arriva Italia and Others, C-385/18, ECLI:EU:C:2019:1121, paragraph 36.

(92) Act No500/2004 Sb.

(93) The Commission notes that no other text forming part of the legal basis cited in recital (29) provides details on the Measure, such as specific eligible costs, specific aid amount, method for calculating the aid, etc.

(94) Judgment of 22 September 2020, C-594/18 P, Austria v Commission, ECLI:EU:C:2020:742, paragraph 19.

(95) The transition to DVB-T2 resulted in an increase of the number of broadcasted television channels and of the quality of TV channels to HD.”, in BNE is pleased to announce that its Czech member České Radiokomunikace (CRA) has now completed the transition from DVB-T to DVB-T2 and released the 700 MHz band, 13 November 2020, accessible on https://broadcast-networks.eu/transition-to-dvb-t2-completed-in-the-czech-republic/ (accessed on 4 February 2022).

(96) M7 Group to launch Czech pay-DTT, https://www.broadbandtvnews.com/2020/08/31/m7-group-to-launch-czech-pay-dtt/ (accessed on 8 March 2022).

(97) Judgment of 12 September 2019, Achemos Grupė and Achema v Commission, T-417/16, ECLI:EU:T:2019:597, paragraph 84.

(98) Commission Decision SA.51080, recital 85; Commission Decision SA.47258, paragraph (36), and Commission Decision of 23 January 2020, recital 78.

(99) Commission Decision SA.51080, recital 87.

(100) Commission Decision SA.47258, recital 80; and Commission Decision of 23 January 2020, recital 79.

(101) Article II, 2. Of the Government Resolution no648/2016.

(102) Judgment of 22 September 2020, Austria v Commission, C-594/18 P, ECLI:EU:C:2020:742, paragraph 44.

(103) Commission Decisions on the German and the Spanish aid measures.

(104) Czechia explained that CRa aimed only at testing the impact of the DVB-T2 technology on the transmission and reception equipment’s performance.

(105) ‘The transition to DVB-T2 resulted in an increase of the number of broadcasted television channels and of picture quality of TV channels to HD.’, in BNE is pleased to announce that its Czech member České Radiokomunikace (CRA) has now completed the transition from DVB-T to DVB-T2 and released the 700 MHz band, 13 November 2020, accessible on https://broadcast-networks.eu/transition-to-dvb-t2-completed-in-the-czech-republic/ (accessed on 4 February 2022). https://www.televizezadarmo.cz/, stating ‘In the new DVB-T2 broadcast, all the programs you were used to with the previous DVB-T digital television are available. Some of them broadcast in higher image quality. For example, Czech Television broadcasts all six of its programs in DVB-T2 in Full HD quality. The new broadcasting networks also have room for other programs, which will gradually appear in them from the beginning of 2020. Among the already known projects are, for example, the new news station CNN Prima News or regional TV Info.’ (accessed on 4 February 2022).

(106) Commission Decisions on the German and the Spanish aid measures.

(107) Recital (29) states: The Measure aims at compensating costs of the technical components as well as the related work, as follows: (a) Combiners; (b) Filters; (c) Antenna systems; (d) Works related to adjustment, installation, setting and measurement.

(108) Recital (19) states: The aid amount is calculated on the basis of the following costs, incurred between 19 March 2020 and 30 June 2020: (a) The direct depreciation charges from CAPEX directly linked to the interruption and suspension of the switching off phase. (b) The direct operating costs directly linked to the interruption and suspension of the technical switching period.

(109) https://www.mediaguru.cz/clanky/2019/09/stat-zahajil-kampan-k-prechodu-na-vysilani-dvb-t2/ (accessed on 4 February 2022).

(110) Judgment of 26 November 2015, Basque Country and Itelazpi v Commission, T-462/13, ECLI:EU:T:2015:902, paragraph 77 and case-law cited.

(111) As also stated in Commission Decision SA.47258, recital (96) and in Commission Decision of 23 January 2020, recital (92).

(112) Annex of the EPaC Decision.

(113) This would concern CRa (right of use ended on 11 May 2021) and Digital Broadcasting (right of use ended on 4 March 2022).

(114) Its right of use should have ended on 30 May 2023.

(115) Its right of use should have ended on 10 January 2024.

(116) Available here: https://www.ctu.cz/cs/download/digitalni_vysilani/prubezna_zprava_tpp_06-2010.pdf

(117) According to Czechia, all transitional transmitters have been launched by June 2018. Pursuant to the Digital Amendment, the rights of use were extended until 2030.

(118) Commission Decision SA.47258, recital (94).

(119) Judgment of 12 September 2007, T-68/03 Olympiaki Aeroporia Ypiresies v Commission ECLI:EU:T:2007:253 paragraph 34.