Does EU Policy Challenge the Digital Future of Public Service Broadcasting?

Abstract

In this article the authors assess the impact of the European Commission's state aid policy on the public service remit of public broadcasting organizations in the digital age. The article consists of two parts. In the first part the authors give an overview of the policy and legal context in which state aid control of public service broadcasting evolves. Second, recent state aid cases that touch upon the issue of digitization and public service broadcasting are analysed. Whereas Member States fear too much Commission intervention, the European Commission, on the contrary, fears that Member States abuse the margins of the European Treaty in order to expand the digital public service remit in unauthorized ways, such as financing commercial digital activities. Whether the Commission is right to fear a 'mission creep' on behalf of the public service broadcasters due to vague and overambitious digitilization plans, remains to be seen however.Key Words / digitization / European Commission / public service broadcasting / public service remit / services of general economic interest / state aid

Transformation of the public broadcasting systems in Croatia and Macedonia as indicators of democratic transformation

“…The CoE has recognized the role of PSB as a fundamental part in democratic development, providing people with impartial news and a diverse high-quality content that will help them participate in the decision-making processes (February 2012). The EU, however, requires that the use of public funds, or 'state aid', supporting PSB be justified by a clear remit (Donders and Pauwels 2008), and new services often must go through 'public value tests' to assess their relevance (Moe 2010).…”

“…In European states, PSB organizations are considered an important pillar of democracy and a tool for the expression of fundamental European values (Brevini 2013). With the recent changes in media technology, the deregulation of broadcasting markets and the rapid growth of commercial media, the role of and public support for PSB have changed across Europe (Bardoel and d'Haenens 2008;Donders and Pauwels 2008;Jakubowicz 2008). Under increased political and legal pressure, less state support is going to fund PSB systems, and as many PSBs also get advertising revenues, commercial broadcast media are increasingly seeking a more level-playing field for all the players in the market that get advertising money (Donders and Pauwels 2008).…”

European Commission media policy and its pro-market inclination: The revised 2009 Communication on State Aid to PSBs and its restraining effect on PSB online

“…According to the Commission, the provision of SMS and I-mode was vague, thus leading to uncertainties for the competitors. Furthermore, the provision of these services was considered to be outside the PSB remit (Donders and Pauwels, 2008). Once more, this conclusion demonstrates the Commission’s move away from technological neutrality to a pro-market inclination.…”

Audio-Visual Services: International Trade and Cultural Policy

“…PSBs benefit from funding through state grants or compulsory license fee payments imposed on viewers and sometimes from preferential access to infrastructure and coverage of public events. The potential for state aid to broadcasters to distort market competition has been a subject for complaint and controversy at national and EU level on numerous occasions (Donders and Pauwels 2008) but a consensus remains that the unique socio-cultural importance of public service content provision justifies exceptional treatment.…”