BROADCASTING/TAXATION : EXECUTIVE CHALLENGES FRENCH TELECOMS TAX.

There is bad news for France: its one-year-old telecoms tax, meant to compensate for the ending of advertising on public TV channels, is "an administrative charge that is incompatible with EU law".The European Commission's verdict was announced on 28 January.

"Not only does this new tax on operators seem incompatible with EU rules, but it also concerns a sector that is now one of the major drivers of economic growth," said Information Society Commissioner Viviane Reding. She pointed out that she had expressed "doubts" about the tax on a number of occasions. The initiative is presented by the Elysee as the solution for phasing out advertising on French public television. "There is a serious risk that it will be passed on to customers at a time when we are in fact trying to reduce their bills," added the commissioner.

Paris has two months to respond before the...

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