Are Member States entitled to decide for themselves how PSB should be organised and financed?
Yes, provided that the Member States’ decisions meet certain criteria of good governance which the Member States themselves have set out. The Member States agreed upon a Protocol to the Amsterdam Treaty which interprets the basic Treaty rules in the light of the particular nature of the broadcasting sector (referred to as the “Amsterdam Protocol”). It recognises that it is the prerogative of the Member State to organise and fund the public service broadcasters. Nevertheless, the Protocol states that the funding shall not affect trading conditions and competition in the Community to an extent which would be contrary to the common interest. Therefore, it is the task of the European Commission, in accordance with Article 86 (2) EC Treaty, to assess whether there is an appropriate balance between the requirements of public service broadcasting and fair competition.
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