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 European 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. Finally, the European Commission has decided that the broadcasters who have benefited the most from the subsidies should reimburse the state aid. The European Commission therefore continues supporting the transition to digital broadcasting in line with its 2003 and 2005 Communications as long as the design of state support measures is compatible with state aid rules. [European Commission Press Release]

Responding to continuing concerns from the European Parliament and non-governmental organisations about media concentration, and its possible effects on pluralism and freedom of expression, European Commissioner Viviane Reding and European Commission Vice-President Margot Wallström presented recently to fellow European Commissioners three-steps on media pluralism in the European Union. [European Commission Press Release]

The European Commission issued a decision requiring the Polish telecom regulator, Urząd Regulacji Elektronicznej (UKE), to withdraw its draft measures for regulating retail access services. Two months ago, the European Commission expressed serious doubts that UKE's plans for regulating these markets were compatible with EU law and requested UKE to back its market definition with convincing evidence. UKE has failed to justify why it intends to regulate broadband access services in addition to regulating retail narrowband access, says the European Commission. [European Commission Press Release]