State aid rules for films and other audiovisual works

Introduction:

On 16 November 2013, the Communication on State aid for films and other audiovisual works entered into force. This new 'Cinema Communication' provides an updated set of rules for assessing whether Member States' audiovisual support schemes comply with EU rules on State aid. It gives clarity to market players on the criteria that the Commission will apply when examining notifications by Member States.

The review of the rules in the Cinema Communication of 2001 was extensive and reflects the important role films and other audiovisual works play in Europe at the crossroads of culture and the economy. On the one hand, European audiovisual pro-duction is an important source of creativity and cultural diversity – one that contributes to defining European identity. On the other hand, cinema is an industry, which has a European dimension. Its activities, just like those of other sectors, are embedded in the EU Single Market. While the EU film sector is dependent on state support – whether at sub-national, national or supranational level. – a common framework for State aid is needed to ensure such subsidies are in the common interest and a level playing field is preserved.

State aid to promote culture is allowed by the Treaty on the Functioning of the European Union (TFEU) through a specific derogation (Article 107(3)(d)). Taking into account the particular nature of the audiovisual sector, the Commission established specific criteria in the Cinema Communication for assessing the compatibility of audiovisual support. These criteria aim to achieve a balance among economic, cultural and legal concerns.

By tackling a number of recent sector evolutions and support trends, the new Cinema Communication ensures continued legal certainty, to the advantage of Member States, sector professionals and – ultimately – European audiences.

Further information:

The Competition Policy Briefs are occasional papers by staff of the Competition Directorate-General of the European Commission about policy issues and key cases.

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