Thu. Sep 19th, 2024

Brussels, 20 December 2021

The European Commission has approved, under EU State aid rules, an Austrian scheme to support the digital transformation of news media. The support will take the form of direct grants to news print media, as well as to radio and television broadcasters.

More specifically, the scheme aims at assisting news media organisations to expand their digitisation through the modernisation of distribution channels, the creation and renewal of digital infrastructure, and the provision of digital content.

The scheme, with an estimated budget of €134 million, will run until 31 October 2027. The Commission assessed the scheme under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), which allows State aid to facilitate the development of certain economic activities or areas.

The Commission found that the scheme will facilitate the development of the news media sector and contribute to promoting media pluralism, which is essential for the functioning of a democratic society. The Commission concluded that the positive effects of the measure outweigh any possible negative effects in terms of distortions of competition. On this basis, the Commission approved the scheme under EU State aid rules.

The non-confidential version of the decision will be made available under case number SA.62555 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

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