Brussels urged to limit broadcasters' aid

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Some of Europe's largest media companies - including British Sky Broadcasting, RTL, Mediaset and Reed Elsevier - are urging the European Commission to clamp down on state aid to publicly-funded broadcasters, according to a report in the FT.

In a joint complaint to Brussels, groups representing the EU's commercial TV, radio and publishing companies claim that publicly-funded rivals, such as Germany's ZDF and the UK's BBC, received E82.2 billion of state aid in the five years to 2001, distorting competition and harming trading conditions.

The private broadcasters claim they have uncovered evidence showing that state aid has risen at 4.8 per cent a year since 2001, when publicly-funded broadcasters received a total of E15 billion.

Commercial media groups are calling on Commission officials to discuss alleged anti-competitive aid at meetings in Brussels next month. A policy document produced by the European Publishers Council, the Association of Commercial Television and the Association Europeenne des Radios urges the Commission to introduce tougher measures to prevent market abuse.

Ross Biggam, director general of ACT, said: "There is insufficient control between the European Commission and member states on the proportionality of aid and the use to which it's put."

Other companies supporting the complaint include Telecinco of Spain, Germany's Axel Springer, Canal Plus of France and Sweden's Bonnier Group.