VVD Europarty on-line
Press-releases Elly Plooij-van Gorsel:

Elly Plooij-van Gorsel (VVD):

"Priority given to public broadcasting in allocation of radio frequencies in conflict with European rules?"

Brussels, 10th November 2000

"The government is intending to organise an auction of FM frequencies for commercial radio stations early next year. In contrast to commercial broadcasting, public broadcasting organisations will be allocated frequencies free of charge and given priority. The question is whether this amounts to hidden state subsidies".
This is the question Elly Plooij wants answered by the European Commission in response to the distinction that is being made between public and commercial broadcasting in the new allocation of radio frequencies scheduled for 2001.
Elly Plooij doubts whether the planned auction will ensure honest competition in radioland. She considers it odd that the Dutch government is totally excluding public broadcasters from the auction. In practice what this boils down to is that they simply have to compete with commercial broadcasters. Public broadcasting organisations will also be given a large chunk of money (tax revenues) by the government.
"If the government really is seeking to create a level playing field and honest competition on the radio market, there must not only be healthy competition between commercial broadcasters, but also between public and commercial stations", the liberal europarliamentarian observes.

In her questions to the European Commission Elly Plooij also explores the Dutch Media Act. This Act assumes that the commercial broadcasters may only participate simultaneously in one commercial frequency package. The reason is to avoid media concentrations and abuse of power. They are not allowed to offer combinations of broadcasting time for adverts. Public broadcasting organisations are allowed to do so and, by offering airtime on the varioius stations simultaneously, achieve 42% of the total market spending on radio advertising. The profits that one public broadcaster makes in the process via cross subsidies are then injected in another public broadcaster.
"Here too, the distinction that the Media Act makes between public and commercial stations creates a distortion of competition. This must be brought to an end", comments Elly Plooij.

For further information: Ed Slinger (tel. No. 06-539 81 381)