The EC has ruled that the tax deductions granted by Italy as subsidies for the reception of digital TV services were legal. In its view, the subsidies – which effectively reduced the cost of set-top boxes by 20% and amounted to almost €40 million – were effectively technology neutral. Moreover, they were justified on the grounds that the deadline for the transition to digital broadcasting could not be met if left to market forces alone. Analogue switch off is being undertaken on a region-by-region basis in Italy, with the first parts of the country to go digital being Sardinia and Valle d’Aosta earlier this year.
