EU Says Swedish Money For TV Fits State Aid Rules

Sweden did not violate state aid rules when it provided money to help state-owned terrestrial network ”Teracom” develop digital television, according to the European Commission.

But the Swedish government may have other anti-trust problems with its television system.

”The Commission is satisfied that Sweden did not grant Teracom state aid for the switch-over to digital terrestrial television,” Competition Commissioner Neelie Kroes said in a statement.

”However, we are actively pursuing Sweden for failing to abolish the monopoly enjoyed by a company owned by Teracom to provide access control services and have referred Sweden to the EU’s Court of Justice,” she said.

Satellite providers had complained that the terrestrial transmission received the money to get an unfair advantage over other types of digital delivery, such as cable and satellite. The Commission in October asked the Court of Justice, the EU’s top court, to look at Sweden’s failure to change rules giving a monopoly to its digital terrestrial broadcast network.