EC opens investigation into Spanish broadcasting tax

The European Commission has opened a formal investigation under the EU state aid rules into the new tax-based funding system for Spanish public broadcaster RTVE. Spain is planning to abolish advertising and other commercial activities of RTVE and to replace this source of income by newly introduced taxes on TV and telecommunications operators.

In addition to existing state financing of RTVE, the government plans a 3 per cent tax on free-to-air commercial broadcasters' revenues, 1.5 per cent on pay TV broadcasters, 0.9 per cent on electronic communications operators and an 80 per cent share of the existing tax on radio spectrum use, up to a maximum of E330 million.