BRUSSELS, July 2 (Reuters) - European Union antitrust authorities launched on Thursday an in-depth investigation into restructuring aid for Danish TV channel TV2 Danmark to see whether it complies with strict EU state aid rules. "The restructuring of TV2 Danmark should ensure long-term viability for its commercial and public service activities," EU Competition Commissioner Neelie Kroes said in a statement.
The EU executive said the investigation would focus on whether TV2 would survive without long-term state support and if the introduction of user charges on its public service channel would distort competition.
The Commission will also look into whether a proposal not to launch new pay channels was proportionate to TV2's strength in the domestic market.
State-owned TV2 Danmark is a private limited liability company which operates public TV channel TV2 and a number of commercial stations including TV2 Zulu, TV2 Charlie and TV2 Sports. The proposed restructuring is from 2009 to 2012. The Commission, which monitors state aid in the 27-country European Union, had last year temporarily approved a credit facility for the company after it ran into liquidity problems.
This, along with other previous aid granted to TV2 Danmark, is the subject of court proceedings brought by its rivals.
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