The application of the State aid rules to public service broadcasting has never been a straightforward exercise for the European Commission (hereafter the Commission). The picture became more complex in the digital era in light of the expansion of public broadcasting organizations to new media markets. Yet, in spite of the challenges it faced, the Commission has not limited itself to a marginal compatibility assessment checking solely whether the provision of related services outweighs the harm to competition. Through its decision-making and the adoption of a soft law instrument, the Broadcasting Communication, the Commission gradually managed to inject into national schemes supporting broadcasting activities its own perspective of “good” State aid policy. This chapter discusses the impact that the Commission State aid practice has had on national systems and reflects on whether the latter has struck the right balance between the conflicting values involved, namely competition and public service broadcasting. The chapter argues that, while in several instances the Commission went beyond the Treaty letter, its control over relevant State measures has contributed substantially to ensuring a level playing field between public broadcasters and commercial undertakings operating in the wider context of the media market.
