The EC is to launch a probe into moves in France to give public broadcaster France Télévisions a €450m subsidy funded by private broadcasters; there are suspicions it could contravene European competition law. The levy came into effect in March and will take between 1.5% and 3% of the private broadcasters' ad revenue.
The move has been introduced as part of President Sarkozy's plans to abolish advertising from the state channels in France, but commercial broadcasters have raised concerns about its meaning higher taxes for them as well as allowing France TV to launch new services in direct competition, which they claim affords it an unfair advantage.
A spokesperson for the commission said it was "concerned about the use made of the taxes introduced by the reform and possible overcompensation for public service costs up to 2011 and 2012."