ADVANTAGES

Option 3 could be an appropriate approach, therefore, but only on condition that the European Commission undertook some radical de-regulation beyond that already achieved in the telecommunications sector, starting with the broadcasting sector in order to rid the communications industry from unnecessary and anachronistic requirements dating back from days of spectrum scarcity. Before introducing a new regulatory model the Commission would also have to tackle the question of distortions of competition in the TV market which arise as a result of publicly funded broadcasters competing head on with commercial broadcasters for advertising and subscription revenues. In addition the Commission would need to review and reform of the Merger Task Force with a view to modernising the current regime to take account of the globalisation of the media sector. For example, with the help of expert help from the industry, a careful review of relevant market definitions will be necessary (see also para 1.4).

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