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#1
04-06-2008, 10:54 PM
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EU blocks BBC aided C4 switchover
EU blocks BBC aided C4 switchover
The European commission has decided that the UK government's plan to use BBC licence fee money to pay Channel 4's £14 million (E18m) digital switchover costs appears to fall foul of the state aid rules, aimed at halting unfair competition. Channel 4 played down the impact of the commission's interim ruling, with a spokesman saying it was a "pretty standard" part of the regulatory process and that the UK broadcaster would be arguing that the digital switchover assistance from the BBC should be counted as "special funding", not unacceptable state intervention in the broadcasting market. It is understood that the culture secretary, Andy Burnham, and media regulator Ofcom will also be lobbying on Channel 4's behalf in Brussels on this issue
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