Public Service Broadcasting

Funding of Public Service Broadcasting

The Amsterdam Protocol establishes the competence of Member States to provide for the funding of Public Service Broadcasting (PSB) in recognition of its direct relationship to the democratic, social and cultural needs of each society and to the need to preserve media pluralism.

The Amsterdam Protocol permits such funding insofar as it is granted to broadcasting organisations for the fulfilment of their public service remit and insofar as such funding does not affect trading conditions and competition in the Community to an extent which would be contrary to the common interest.

State Aid case

The investigation into the funding of public service broadcasting in Ireland arose in the context of a formal complaint by TV3, made originally in 1999, alleging infringements of Articles 92 – 94 of the EC Treaty relating to, among other things, the payment of licence fee revenue and direct grants to RTÉ.

Following a period of investigation, the EU Commission forwarded an Article 17 letter to the Irish Authorities on 3 March 2005 setting out its preliminary views in relation to the compatibility of the funding arrangements for RTÉ with the requirements of the EU Treaty.

Negotiations with the European Commission and the Department of Communications, Energy and Natural Resources led to the resolution of these issues in early 2008 culminating with a letter of commitment by the Irish Authorities to certain undertakings, to be formally undertaken in the context of the Broadcasting Bill, 2008, and by the Commission announcement to close the investigation on 28 February 2008.

Copies of key documentation referred to above are attached hereunder.