The European Commission opens in-depth investigation to examine whether a Spanish plan to compensate digital terrestrial broadcasters for the extra costs of parallel broadcasting, while services are re-allocated to another frequency to free the digital dividend, is in line with EU state aid rules.

The Spanish plan to compensate digital terrestrial broadcasters for the extra costs of parallel broadcasting is under a Commission's investigation in order to know whether is in line with EU state aid rules. In 2009, Member States were already ready for analogue terrestrial TV switch-off. Commission Vice-President in charge of competition policy, Joaquín Almunia stressed that although the liberation of the digital dividend creates tremendous opportunities for a better use of spectrum, the Commission has to make sure that those opportunities are available fairly in compliance with EU State aid rules.

Spain notified a plan to compensate broadcasters for the extra costs on the relocation of broadcasting services to free band space for the provision of enhanced electronic communication services. To ensure a continuity of broadcasting services, Spain requires broadcasters to send simultaneously on both frequencies for a transitional period of 6-24 months, while citizens adapt their reception infrastructure. This triggers extra costs for the broadcasters concerned.

The Commission has initiated the investigation because it considers it has not enough information, to determine whether the measure is necessary and proportionate at this stage. Moreover, the Commission has concerns that the measure could favour terrestrial broadcasting to the detriment of other technologies, such as satellite transmission, in breach of the principle of technological neutrality, which prescribes an equal treatment of all transmission platforms, independently of the technology used.