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EU withdraws case vs Hungary over anti-competitive cable TV services


Published :
Thu, 19 Jul 2007 11:01
By : Agencies
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BRUSSELS (Thomson Financial) - The European Commission said it has withdrawn its case against Hungary for anti-competitive restrictions on cable television services after it abolished a provision of its Media Act.

The commission was taking Hungary to the EU's highest court for failing to abolish anti-competitive restrictions on cable television services.

The EU executive asked for a Media Act provision preventing cable operators from providing cable TV services to more than one third of the Hungarian population to be abolished in April last year.

'The provision limited competition on the markets for cable TV and broadband internet services in Hungary: such a lack of competition typically leads to higher prices, less innovation and slower take-up of these services,' the commission said in a statement.

'I welcome the fact that Hungary has finally lifted the restrictions imposed on cable TV operators by the Media Act. In Hungary, cable TV operators are major providers of broadband access to the Internet. Now cable TV operators will be able to provide their services without restriction throughout Hungary and Hungarian citizens will have better choice in broadband services,' competition commissioner Neelie Kroes said in a statement.

nina.chestney@thomson.com

nc/slm

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