WRITTEN QUESTION E-3655/00

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

(23 November 2000)

Subject: Distinction between public and commercial radio broadcasting in the auctioning of radio frequencies in the Netherlands

In the Netherlands there are plans for an auction in 2001 to achieve an efficient distribution of radio frequencies amongst commercial radio broadcasters. It will be a simultaneous multi-stage auction with bids. Licences will be granted for eight years, a period similar to the one applicable to national public broadcasting. In contrast to commercial broadcasters, public stations will receive frequencies free of charge and on a priority basis.

1. Can the Commission look into whether making frequencies available to public broadcasting free of charge is a form of state aid incompatible with the Treaty?

The cabinet's opinion on the auction completely ignores public broadcasting. Mention is merely made of creating a level playing field between commercial stations, but not between commercial and public stations. With regard to the frequency range for commercial broadcasting the Dutch government envisages two important tasks: promoting access to the market for different types of commercial broadcasting bodies and healthy competition between market operators. The latter means an equal starting position (as far as possible) and avoiding the creation of market concentrations.

2. Does the Commission agree that creating or maintaining a level playing field and promoting fair competition on the radio market involves not only healthy competition between commercial broadcasters but also between public and commercial broadcasters?

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.