European Court: Berlusconi favored Mediaset Group
Italian Prime Minister Silvio Berlusconi's Mediaset group must repay millions in state aid. This was decided by the European Court of Justice on Tuesday. According to the judges, the Italian government unilaterally favoured the Mediaset Group, which specializes in digital terrestrial television, and disadvantaged satellite providers during the switchover to digital television in 2004.
Under the Berlusconi government, the Italian state paid consumers a subsidy of 150 euros for the purchase of digital TV decoders, which are necessary to receive digital television. According to the Italian media, the Berlusconi family even controls the production and distribution of such decoders through their companies. The television provider, together with other TV broadcasters and cable operators, must now repay millions in state aid. An upper limit of 110 million euros has been set for the expenditure.
With their ruling, the judges confirmed a decision by the EU Commission. The competition authorities had already rejected the aid as unlawful in 2007 following complaints from satellite broadcasters. The Mediaset Group, which owns Canale 5, Italia 1, Rete 4 and six pay-TV channels, had taken legal action against this in Luxembourg. An Italian court must now decide on the amount of the repayment.
With their ruling, the judges confirmed a decision by the EU Commission. The competition authorities had already rejected the aid as unlawful in 2007 following complaints from satellite broadcasters. The Mediaset Group, which owns Canale 5, Italia 1, Rete 4 and six pay-TV channels, had taken legal action against this in Luxembourg. An Italian court must now decide on the amount of the repayment.
