Conformity of Hungary's Act XXII of 2014 with EC law

5.8.2014

Question for written answer E-006247-14
to the Commission
Rule 130
Helga Trüpel (Verts/ALE) , Benedek Jávor (Verts/ALE)

Hungary’s Act XXII of 2014 on advertising tax will enter into force on 31 August 2014. It will introduce a tax rate of up to 40% of turnover for advertising income, distorting the Hungarian media market by its discriminatory nature.

1. Has the Commission investigated whether this legislation radically restricts the financial means and deliberately limits the financial independence of the Hungarian media, thus constituting a threat to the freedom and diversity of the media and contravening the fundamental rights codified in EC law?

2. The position of RTL Klub (owned by the RTL Group registered in Luxembourg) on the Hungarian market will be considerably weakened in comparison to competing Hungarian television channels. Does the Commission consider that the tax distorts competition on the Hungarian television market to the disadvantage of RTL, and that it therefore constitutes a prohibited form of indirect state aid in the sense of Article 107 TFEU?

3. Finally, Article 56 TFEU provides for freedom of services within the EU (single market). Does the Commission consider that Act XXII, which deprives RTL Klub of certain revenues and hence effectively limits its ability to provide services in Hungary, is in contradiction with the concept of freedom of services?