France and Spain Ordered to Stop Using Telecoms Taxes to Subsidize TV Services

The European Commission has decided that imposing a tax on telecommunications networks to subsidize the cost of public television services is incompatible with European law and has instructed France and Spain to abolish the charge.

In both cases, the Commission considers these "telecoms taxes" to be incompatible with EU telecoms rules, which require specific charges on telecoms operators to be specifically and directly related to covering the costs of regulating the telecoms sector. The requests take the form of "reasoned opinions" under EU infringement procedures. France and Spain now have two months to inform the Commission of measures taken to comply with EU telecoms rules. If they fail to do so, the Commission may refer them to the EU Court of Justice.