By: Jan
SwitchCo and State Aids Regulations
Oh… while I am at it I want to mention a thought that crossed my mind. Stephen Carter is reported to have mentioned that SwitchCo - the body that will drive forward the change towards analogue switch off in television - will be a key element in Ofcom’s transition strategy. A key argument in the switch off debate is that market forces will be capable of dealing with the transition to digital.
If there is an argument that switch off should be left to market forces the establishment of SwitchCo is contentious with regards to EC regulations on State Aids. Ofcom (or government) would have to notify the monies spent on SwitchCo with the European Commission. Any company would be able to trigger a Commission enquiry into the legitimacy of SwitchCO under State Aid rules. Therefore, Ofcom is well advised to talk trough its plans with DG Comp before establishing SwitchCo.
Information on State Aid regulations can be found at DTI’s State Aids Unit.

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