European Commission opens probe of French broadcast funds

(BRUSSELS) - The European Commission on Tuesday opened an in-depth probe into France's plans to boost aid to state broadcaster France Televisions, while authorising 450 million euros (643 million dollars) in subsidies for this year.

EU Competition Commissioner Neelie Kroes said France Televisions' recent decision to place greater emphasis on its general-interest mission was in line European policy of media plurality.

However "the commission has embarked today on a detailed review of this reform and it calls on stakeholders to submit their comments before a final decision is taken." she added, while assuring that in the meantime funding for the state broadcaster "is guaranteed."

France plans to phase out advertising from its public channels and provide subsidies instead for France Televisions which runs France 2, France 3, France 4 and France 5 among others.

The state has in effect promised to contribute funding from a new tax levied against telephony operators and internet providers and an annual subsidy, which together would exceed two billion euros by 2012.

Brussels is keen to ensure that such funding does not skew competition in the TV market.

However the commission stressed that it authorised the initial 450-million-euro payment "as complying with European Commission treaty state aid rules."