CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. EC Approves French TV Tax

EC Approves French TV Tax

by Ulrika Lomas,, Brussels

22 July 2010

The European Commission has approved the long-term funding mechanism for public television (France Télévisions), involving the introduction of two new taxes, one on advertisements and the other on electronic communications, as part of the gradual elimination of advertising on public channels.

The Commission concluded that the measure complies with the rules on state aid for public broadcasting services, particularly as regards mechanisms for preventing over-compensation for the costs of the public service mission.

Despite appeals by competitors, the advertising tax will be paid by the television channels, and the tax on electronic communications by service providers, such as Internet portals and cable or satellite operators. The revenue from these taxes will go to state funds, without being formally earmarked.

Commenting on this, Commission Vice-President for Competition Joaquín Almunia said: “State compensation of the costs of a public service mission is allowed, provided that the mission is clearly defined and there has been no over-compensation. I am satisfied that the French legislation includes the requisite mechanisms to preserve fair competition between the public and private sectors.”

The French authorities launched an overhaul of public broadcasting in 2008 aimed at sharpening its focus and raising standards, and resulting in the Law of March 5, 2009 on audiovisual communication and the new public broadcasting service, under which advertising on public channels will be reduced and ultimately abolished by end-2011.

TAGS: tax | business | European Commission | commerce | law | internet | e-commerce | legislation | France | Europe

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »