On 20 October, a majority of Member States opposed the Public Television State Aid Guidelines, expressing their preference for a case-by-case approach. The Commission now intends to consult private broadcasters. The Commission, which is apparently split on the issue, is expected to decide before the end of the year whether to adopt the Guidelines. It will be interesting to see if DGIV succeeds in convincing the rest of the Commission to do so. Things will become even more complex with convergence of the telecommunications, media and information technology sectors. The Commission’s 1997 Green Paper on Convergence provides that if state funds were used by public broadcasters to leverage and crosssubsidise their new activities, such practices would be subject to the rules on competition and on the freedom to provide services.

Maya Barr
Freshfields Deringer
Brussels