International News

Posted: Mon., Jan. 29, 2007, 6:59am PT

Antitrust chief comes to Berlusconi's aid

Catricala says proposal to cap ad revenue is wrong

Silvio Berlusconi

Berlusconi

ROME — Italy's antitrust chief is opposing a government plan to cap TV advertising, giving the Silvio Berlusconi-controlled Mediaset broadcast group much-needed support as it fights the proposed reform.

In a TV interview taped Sunday night, Antonio Catricala said the Romano Prodi-led government's draft legislation limiting a single company to 45% of the TV ad revenue pie would unfairly crimp Mediaset revs.

"You cannot put a limit on Mediaset's revenues, because you cannot stop a company from growing," said Catricala, who was appointed to the job -- an independent post -- in 2005 while Berlusconi was prime minister.

Before that, Catricala worked in Berlusconi's office as secretary general.

The government wants sweeping changes in Italy's TV broadcast sector, one of Europe's least competitive.

Mediaset currently controls 57% of TV ad revenue, pubcaster RAI 27%.

If Mediaset were forced to forgo ad revenue to fit the government plan, it would lose an estimated e103 million ($133 million) a year, according to a recent report by IT Media.

Last week, Berlusconi called the media bill "a criminal aggression against Mediaset" and vowed to stage a massive protest rally.

Contact the Variety newsroom at news@variety.com

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