Press Release: State aid: Commission endorses subsidies for digital decoders in Italy, but only where technology-neutral

The European Commission has decided that subsidies for digital decoders granted by Italy in 2006 do not violate EC Treaty state aid rules (Article 87(1)) as they are offered for all decoders, regardless of the transmission platforms, are therefore technology-neutral and proportionate to the objective of promoting the transition to digital TV and to interoperability. However, the Commission has also decided that subsidies provided in 2004 and 2005 are incompatible under the state aid rules as they were not technology-neutral and created an undue distortion of competition by excluding satellite technology (see IP/05/1657). Finally, the Commission has decided that the broadcasters who have benefited the most from the subsidies should reimburse the state aid. The Commission therefore continues supporting the transition to digital broadcasting in line with its 2003 and 2005 Communications (see IP/03/1276 and IP/05/595) as long as the design of state support measures is compatible with state aid rules.