The EU Commission decides to open formal investigation proceedings on the subsidy provided by Italy to consumers buying a certain type of decoders allowing the view of digital television programs

"State aid to digital decoders: proportionality is needed to meet common interest"*1. Introduction In December 2005 the Commission decided to open formal investigation proceedings on the subsidy provided by Italy to consumers buying a certain type of decoders allowing the view of digital television programs. The decision is relevant for various reasons. It clarifies that even state aid measures which pursue an objective of common interest — as in this case the digitisation of TV — are subject to control of proportionality and should not introduce unnecessary distortions. It discusses the scope of the Article 87(2)(a) derogation for measures having social character and the qualification as state aid of advantages granted indirectly to undertakings. The decision also provides an example

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Authors

  • European Commission - DG MOVE
  • DG Economic and Financial Affairs (ECFIN) (Brussels)

Quotation

Sandro Santamato, Matteo Salto, The EU Commission decides to open formal investigation proceedings on the subsidy provided by Italy to consumers buying a certain type of decoders allowing the view of digital television programs, 21 December 2005, e-Competitions Bulletin December 2005, Art. N° 36735

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