The EU General Court decides in two cases on the compatibility with internal market principles of a tax partially funding a state aid (Telefonica / DTS)

* Article published on Lexxion State Aid Blog (click here), republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

Levying Taxes to Fund Public Broadcasters* Main points Taxes may not be examined by the Commission in the context of Article 107 even if they finance State aid measures. By contrast, the Commission may examine a tax in the context of its assessment of the compatibility of aid with the internal market when the tax is inseparable from an aid measure. A tax is inseparable from an aid measure when it is used exclusively to fund the aid and the amount of the aid depends exclusively on the amount raised by the tax. The method of raising revenue to fund a service of general economic interest (SGEI) does not affect the designation of a service as an SGEI. In the field of broadcasting, Member States may include in the public service mission commercial content such as films and sports so that

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Phedon Nicolaides, The EU General Court decides in two cases on the compatibility with internal market principles of a tax partially funding a state aid (Telefonica / DTS), 11 juillet 2014, e-Competitions State aid and Service of General Economic Interest, Art. N° 68699

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