WRITTEN QUESTION No. 3876/98 by Ernesto CACCAVALE Protectionism and barriers to free trade on the Italian digital television market
C 320/84 Official Journal of the European Communities EN 6. 11. 1999 Answer given by Mr de Silguy on behalf of the Commission (28 January 1999) The Commission would refer the Honourable Member to its answer to Written Question No E-3596/98 by Mr Friedrich (1). (1) OJ C 297, 15. 10. 1999, p. 84. (1999/C 320/112) WRITTEN QUESTION E-3876/98 by Ernesto Caccavale (UPE) to the Commission (4 January 1999) Subject: Protectionism and barriers to free trade on the Italian digital television market An outcry has been caused in Italy by the Murdoch television group’s entry onto the digital television market in the form of the newly-established company News Corp Europe and the draft agreement between the new company and Telecom Italia, which already has a presence on the market through its Stream company. The Murdoch group’s new company would operate in Italy alongside the two existing structures: Telecom Italia, with Stream, and Canal Plus, with Telepiù and D+. The Italian Government’s reaction to the proposed agreement between Telecom Italia and Murdoch has been extremely negative, since such a move would place the Italian partners in both structures in a subordinate position. The Communications Minister, Salvatore Cardinale, has expressed concern about Murdoch’s disproportionate economic power and said that a period of ‘protectionism’ is required in order to enable Rai and Mediaset to develop their own technologies and become competitive with the other international television groups. Given the above, would the Commission: @ check that the agreement between Telecom Italia and the Murdoch group company complies fully with the rules on free competition; @ establish whether the Italian Government’s ‘protectionist’ attitude is itself not in breach of European competition rules, and state what action it intends to take should this prove to be the case. Answer given by Mr Van Miert on behalf of the Commission (8 February 1999) There are at present two digital pay-TV operators on the Italian market. Tele+ is controlled by Canal+ and provides pay-TV services by satellite and microwave link. Stream, which is currently controlled by Telecom Italia, provides cable and satellite services. From a competition viewpoint, Tele+ occupies an undisputed dominant position in Italy, with over 90 % of the pay-TV market. This is due to the fact that it began operating its pay-TV platform well before Stream and also because it owns the most important broadcasting rights, such as those over films produced by the major US studios and those over major sporting events. The Commission is following closely developments on the market in view of the proposed link-up between the Murdoch Group and Stream. It will continue to ensure that the Community rules are properly implemented