European Commiion clears RTBF funding scheme

On 7 May 2014, the European Commission issued its Decision clearing the funding mechanism of Radio-T l vision belge de la Communaut Culturelle Fran aise (RTBF) under the EU state aid rules. The decision followed an in-depth state aid investigation into the funding of RTBFs public service remit, and in particular the amendments made to RTBFs Management Contract with respect to new media (online) services.

The decision Whilst acknowledging that public service broadcasters should be able to use the opportunities offered by digitisation, the Commission noted that the provision of a new media service must be based on an official act of entrustment describing in a "clear and precise manner" the service in question. In the Commissions view, the scope of permissible new media services under RTBFs new Management Contract was not sufficiently clear. In response, the Belgian authorities decided to propose the following amendments to the Management Contract:

Inclusion of an exhaustive list of permissible online services, a so-called "white list" of services.

Free online VOD and catch-up services to be of unlimited duration except content acquired from third parties, which will be available for a maximum 7 day period.

Online news activities to be clearly set out in the Management Contract.

An ex ante evaluation procedure for all "significant new services" before launch, including full public consultation.

The Belgian authorities also proposed to provide an exhaustive list of commercial services and to introduce a mechanism ensuring against any overcompensation for public services.

On the basis of the commitments proposed, the Commission declared the aid supporting RTBF compatible with Article 106(2) TFEU. It should be noted that commitments were tailored to the specific facts of the case and the competition situation in the Belgian (Walloon) market, in part going beyond the guidance set out in the Broadcasting Communication.

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