EU Launches Investigation into Czech State Aid for Digital TV Operators

The European Commission has raised concerns over 18 million euros ($19.3 million) in state aid provided by the Czech government to three digital terrestrial TV (DTT) operators. The EU’s competition regulators have initiated an investigation to determine whether this support adheres to the bloc’s stringent state aid regulations.

The aid in question was allocated to Czech public service broadcaster Ceska televize, along with two private DTT operators, Ceske Radiokomunikace and Digital Broadcasting. The European Commission disclosed that it had received complaints in both 2016 and 2018 regarding the state aid granted to these Czech digital TV operators.

In an official statement released on Friday, the EU antitrust enforcer stated, “At this stage, based on its preliminary assessment, the Commission has doubts about whether the measure is in line with EU State aid rules.”

The Czech government, in response to the Commission’s inquiries, outlined its intention to compensate DTT operators for the costs associated with simulcasting during two specific periods: March 1, 2017, to March 18, 2020, and July 1, 2020, to October 31, 2020. The total budget allocated for this measure amounts to approximately 18 million euros.

Simulcasting involves the broadcasting of the same content simultaneously over different platforms, ensuring a smooth transition for viewers from analog to digital TV services.

Source: UK Movies Yahoo