Observed Signal · Aug 22, 2022 · Regulation · Source: Trending Topics · Impact: 2/5 · Sentiment: Neutral
Austrian Media Startups File EU Complaint Over Digitalization Fund
Austrian online media startups, led by Trending Topics, have filed a complaint with the European Commission alleging that Austria's Digital Transformation Fund constitutes unlawful state aid. The fund provides €54 million in 2022 and €20 million in subsequent years to support the digitalization of journalism. However, only print, radio and television media are eligible; pure online media and outlets younger than one year are excluded. In an open letter to Minister Susanne Raab, the signatories argue the funding distorts competition, entrenches incumbent media power, and violates press freedom. They also point to Germany's withdrawal of a similar press subsidy program in 2021 after constitutional concerns and a threatened legal challenge by Krautreporter. The complainants demand that the fund be suspended and redesigned to include digital-first and startup media.
The complaint challenges the design of Austria's digital journalism subsidy, potentially setting a precedent for whether online-only and startup media can access state digital transformation funds. It is relevant to media industry competition but remains a regional policy matter.
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Key Takeaways & Evidence Grounding
- Trending Topics and other young online media outlets filed a complaint with the EU Commission over alleged unlawful state aid.
- Austria's Digital Transformation Fund provides €54 million in 2022 and €20 million in subsequent years.
- Only print, radio and television media are eligible; pure online media and outlets younger than one year are excluded.
- The open letter asks Austrian Minister Susanne Raab to suspend the funding immediately.
- A comparable German press funding program was withdrawn in 2021 after constitutional concerns and a threatened lawsuit by Krautreporter.
Connected Companies & Entities
1 Entity mapped“The €54 million in funding roughly equals the annual revenue of the Der Standard Gruppe....”
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