Italian broadcaster Mediaset has suffered a significant blow in its future plans after it lost its bid to reverse an EU ruling that orders Rome to reclaim subsidies that had indirectly supported the company.
In 2007, the European Commission ordered the…
Italian broadcaster Mediaset has suffered a significant blow in its future plans after it lost its bid to reverse an EU ruling that orders Rome to reclaim subsidies that had indirectly supported the company.
In 2007, the European Commission ordered the Italian government to take back financial aid that had been handed to consumers to buy or rent digital decoders for terrestrial and cable TV as the analogue to digital switchover drew nearer. Following complaints from Sky Italia and Centro Europa 7, the EU decided that this was in breach of its rules on state aid and, despite Mediaset’s efforts to have the call reversed, claiming it received no benefit from the subsidies, the decision will stand.
A court in Luxembourg ruled that the state aid “must be recovered” as “the measure is not technologically neutral and confers an indirect advantage on digital terrestrial broadcasters to the detriment of satellite broadcasters”.
Mediaset has now said that it will appeal the decision in the European Court of Justice.
Italy had been handing out up to E110m per year to enable the purchase of set-top boxes.
