Posted: Thurs., Nov. 12, 1998

Euro Commish to hear charges against BBC

Beeb criticized for using public funds for commercials

BRUSSELS -- Britain's BBC will come under fire early next month, as leading Brit media companies complain to the European Commission that the Beeb should not be allowed to use public funds to finance its commercial TV operations.

According to a Commission source, Brussels competition officials will meet with Rupert Murdoch-controlled News Intl. and BSkyB, along with ITV, Pearson and the Associated Press, to discuss the allegations on Dec. 4.

BSkyB complained to Brussels last year about the BBC's 24-hour news channel being provided at zero cost to cable companies, and has since then sought in vain to get clarification from Brussels about how it will deal with pubcasters in effect receiving state subsidies and channeling them into commercial ventures.

EU member state representatives last month rejected Commission plans to adopt guidelines that would regulate state aid payments to broadcasters across Europe, deciding instead that Brussels should deal with complaints from private broadcasters about government subsidies on a case-by-case basis.

This rejection has potentially weakened the role of the Commission in examining subsidies to pubcasters, although EU's competition chief is known to be concerned about the problem and could intervene under competition powers given to the Commission under the EU Treaty.


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