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On 11 June 2009, the FCA issued an opinion to the Ministry of Transport and Communications on the proposals of the working group which has examined the public service task and funding of Yleisradio Oy, Finland's national public service broadcasting company (hereinafter YLE). The opinion comments on all the three issues examined by the working group:
Definition of the public service task
When YLE's public service task is defined, the focus should be on YLE's core duties, finds the FCA. The definition contained in the law should be precise and also include a competition impact analysis, because an unclear definition may lead to suspicions of restrictive behaviour.
The provision of public service should not be excluded from the market, however, solely on the grounds that the private sector produces or may produce the same services. It is hence not justified to limit YLE's field of operation insofar that the company could not operate on a market also populated by commercial actors (cf. e.g. entertainment series). The EU Commission also approves the wide definition of the public service task, which includes sports and entertainment as part of a balanced and diverse programme supply.
In other words, the splitting of the market into private and public production activities is not justified from a competition perspective. When the public service of YLE is defined and monitored, however, care should be taken that the competitive scene between the private and public actors is neutral both from the perspective of antitrust rules and state aid regulations.
Steering and monitoring of the public service task
The FCA finds that the monitoring procedure proposed by the working group does not meet the criterion of independence required by the EU Commission, since the Administrative Council is part of YLE's organisation. The monitoring party should be independent of YLE.
The FCA finds that such an independent party could e.g. be an independent organ operating under the Ministry of Transport and Communications. The organ should contain experts of mass communications, competition law and state aid who would be able to specify the line between public and private service, provide contentual and quantitative goals for YLE's law-bound tasks and make clear competition-neutral policy definitions in advance.
Funding of the public service
The FCA finds that YLE's funding should lie on a lasting basis and ensure to the extent possible that the conditions for competition neutrality are fulfilled. None of the funding models of YLE's activities are perfect, but the tax-paid funding would be the best option in this sense. Contrary to the working group's proposal, the FCA supports the funding of YLE's activities from the state budget hereinafter.
Further information:
Assistant Director Seppo Reimavuo, tel. +358 9 7314 3602
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