COMMISSION DECISION
of 19 May 2004
on measures implemented by Denmark for TV2/Danmark
(notified under document number C(2004) 1814)
(Only the Danish text is authentic)
(Text with EEA relevance)
(2005/217/EC)
I. PROCEDURE
II. DESCRIPTION
1. The national background
(a) The Danish broadcasting market
(b) Legal requirements
(c) TV2's commercial activities
2. The measures
(a) Licence fee resources
(b) Ad hoc transfers from the TV2 Fund and the Radio Fund
(c) Exemption from corporation tax
(d) Exemption from servicing charges on establishment loans
(e) State guarantee for operating loans
(f) Fees paid for nationwide transmission frequencies and the authorisation to broadcast in networks
(g) Must-carry status
3. Grounds for initiating the procedure
III. COMMENTS FROM INTERESTED PARTIES
IV. DENMARK'S COMMENTS
V. LEGAL ASSESSMENT
1. State aid within the meaning of Article 87(1)
(a) State resources
(b) The favouring of certain undertakings and distortion of competition
(c) Effect on trade between Member States
(d) Conclusion
2. Compatibility of the aid with the common market pursuant to Article 86(2) of the EC Treaty
(a) Definition
(b) Entrustment
(c) Proportionality
(i)
Net public service cost — the issue of overcompensation
(DKK million) |
|||||||||
Year |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
Total |
Gross public service cost |
– 755,8 |
– 856,2 |
–1 415,2 |
–1 475,3 |
–1 439,1 |
–1 531,6 |
–1 518,5 |
–1 604,1 |
–10 595,8 |
Investment in digitalisation(34) |
0 |
0 |
0 |
0 |
–10,3 |
– 4 |
–56,7 |
–23,9 |
–94,9 |
Net advertising income |
0 |
0 |
1 091,9 |
1 118,4 |
1 014,4 |
1 089,9 |
1 006,8 |
1 028,3 |
6 349,7 |
Other |
83,2 |
121,6 |
97,3 |
76,3 |
50,9 |
65,4 |
58 |
73,8 |
626,5 |
Net public service cost |
– 672,6 |
– 734,6 |
– 226,0 |
– 280,6 |
– 384,1 |
– 380,3 |
– 510,4 |
– 525,9 |
–3 714,5 |
Licence fee/TV2 Fund |
730,4 |
694 |
328,5 |
357,5 |
414,6 |
449,2 |
537,3 |
556,2 |
4 067,7 |
Transfer when Radio Fund was wound up |
0 |
0 |
8 |
10 |
15 |
25 |
0 |
0 |
58 |
Transfer when TV2 Fund was wound up |
0 |
0 |
217 |
0 |
0 |
0 |
0 |
0 |
217 |
Balance (net cost minus state compensation) |
57,8 |
–40,6 |
327,5 |
86,9 |
45,5 |
93,9 |
26,9 |
30,3 |
628,2 |
(DKK million) |
|||||||||
|
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
Total |
Corporation tax exemption |
19,7 |
–13,8 |
54,6 |
30,1 |
16,7 |
29,7 |
18,5 |
3,9 |
159,4 |
Accrued interest on establishment loan |
44,5 |
39,2 |
36,9 |
41,3 |
37,5 |
45,1 |
51,7 |
45,6 |
341,8 |
State guarantee, operating loans |
2,4 |
2,1 |
1,7 |
1,4 |
1,0 |
0,7 |
0,4 |
0,1 |
9,8 |
Transmission frequency fee(35) |
|
|
2,3 |
7,9 |
12,6 |
21,4 |
26,0 |
|
70,2 |
Total |
66,6 |
27,5 |
95,5 |
80,7 |
67,8 |
96,9 |
96,6 |
49,6 |
581,2 |
(ii)
Behaviour restricting competitive in commercial markets
|
1998 |
1999 |
2000 |
2001 |
2002 |
TVDanmark (EUR) |
283 |
270 |
252 |
251 |
211 |
TV2 (EUR) |
480 |
409 |
364 |
381 |
325 |
Difference (EUR) |
197 |
139 |
112 |
130 |
114 |
TVDanmark's CPP as share of TV2's CPP(40)(%) |
58,9 |
66,0 |
69,3 |
65,9 |
64,9 |
TV2's average CPP for TRP 21-50 weighted for coverage (by 0,7) (EUR) |
336 |
286 |
255 |
267 |
228 |
TVDanmark's CPP as share of TV2's weighted CPP (%) |
84,2 |
94,3 |
99,0 |
94,1 |
92,7 |
(DKK million) |
|||||
|
1998 |
1999 |
2000 |
2001 |
2002 |
National advertising income |
1 008 |
884 (– 11,3 %) |
959 (+ 8,5 %) |
879 (– 8,3 %) |
884 (– 0,6 %) |
|
|
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
TV advertising expenditure as share of total advertising expenditure (in per cent) |
DK EU Nordic |
27 35 24 |
29 37 25 |
29 37 26 |
30 37 27 |
28 37 27 |
27 37 27 |
27 37 26 |
TV advertising expenditure per capita (in EUR) |
DK EU Nordic |
39 37 32 |
44 40 36 |
48 45 41 |
51 49 44 |
46 53 45 |
47 60 54 |
44 58 49 |
TV advertising expenditure as a percentage share of GDP |
DK EU Nordic |
1,49 2,20 1,45 |
1,61 2,34 1,51 |
1,70 2,46 1,62 |
1,77 2,58 1,72 |
1,51 2,70 1,66 |
1,45 2,88 1,73 |
1,34 2,71 1,55 |
Source: European Audiovisual Observatory, EuroStat. |
VI. CONCLUSION
Article 1
Article 2
Article 3
Article 4
ANNEX
Information on the implementation of Commission Decision 2005/217/EC
1. CALCULATION OF THE AMOUNT TO BE RECOVERED
Date(s)(1) |
Amount of aid(2) |
Currency |
Name and address of recipient |
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2. MEASURES PLANNED AND ALREADY TAKEN TO RECOVER THE AID
3. RECOVERY ALREADY EFFECTED
Date(s)(3) |
Amount of aid repaid |
Currency |
Name and address of recipient |
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