Press Release: State aid: Commission proposes appropriate measures to bring Swedish press aid into line with Single Market

The European Commission formally proposed, under EC Treaty rules on state aid, appropriate measures to Sweden to make a Swedish scheme providing for state support to Swedish newspapers compatible with EU state aid rules. The Commission did not call into question the objective of media pluralism which is pursued by Sweden. However, the Commission considered that some amendments to the aid scheme were necessary in order to avoid disproportionate distortions of competition and trade. The proposals included a gradual reduction in aid ceilings for large metropolitan newspapers and a cap on operation costs. Sweden now has to inform the Commission within three months (which may be extended, if necessary) whether it can agree to the proposed amendments. Failing an agreement, the Commission may open a formal state aid investigation.