Global Trade Alert

The Government of Denmark has introduced state aid for Radio Channel FM4 (overall budget DKr 800 million (US$153.3 million), annual budget DKr 100 million (US$19.2 million)) through a direct grant from 1 November 2011 to 31 October 2019.
 
The Commission gave the following assessment:
"The distortion of trade may thus be envisaged in consequence of the emergence of a new channel - without advertising - in relation to other channels, such as the channels run by the aforementioned DR, SBS Radio, Berlingske Media and New Radio Aps. In this sense, it can be concluded that the measure under examination may distort competition and have an effect on trade between Member States." (par. 62 of the letter from the EC to Denmark - Brussels, 23.03.2011 C(2011)1376 final)
 
According to the Comission:
"In the present case, it can be concluded that the decision of the Danish authorities to provide a channel with no advertising, although having an effect on trade, does not affect the development of that trade to an extent contrary to the Union interest. In this sense, while the competitive environment for private services might be affected by FM4, the freedom to provide services and the functioning of the internal market as such for radio are not affected to an extent contrary to the Union interest." (par. 113 of the letter from the EC to Denmark - Brussels, 23.03.2011 C(2011)1376 final).
 
The Commission has decided not to raise any objection to the measure at issue.
 
A state measure in the GTA database is assessed solely in terms of theextent to which its implementation affects the extent of discriminationagainst foreign commercial interests. On this metric, the state aidproposed here is discriminatory.