The criticisms came from the cross-border broadcasting industry group the Association of International Broadcasting, which has thrown its weight behind CNBC Europe. CNBC Europe is urging the ITC to overturn the ruling.
CNBC, a joint venture between US media companies Dow Jones and NBC, received €300,000 (£191,000) in funding to supplement euro-related programming, 'Euro Change', made by national broadcasters throughout the EU. The total amount of funding available was €3.5m.
The ITC ruled that because the programming was of a current affairs nature it was not allowed to be sponsored under its Code of Programme Sponsorship.
CNBC Europe objects to the ruling that obtaining funding in this way -- through the European Commission's Prince project, which also provides funding to EuroNews, MTV and the Travel Channel among others -- did not constitute sponsorship.
Rick Cotton, president and managing director of CNBC Europe, said: "The ITC's position puts them totally in conflict with the EU, which not only solicited broadcast participation but also wrote the regulatory framework the ITC claims to be interpreting. The provision the ITC refers to is simply not applicable. There was no commercial sponsorship of these programmes because the money was not provided to promote a particular produce, service or brand, as prohibited by the ITC."
Simon Spanswick, chief executive of the AIB, said: "The ITC ruling appears to place CNBC Europe at a competitive disadvantage, as well as working against viewers in the UK and across the continent."
He added: "As a broadcaster of 24-hour-a-day news and current affairs programming, the interpretation by the regulator that the EU grant is sponsorship effectively precludes the channel from applying for any further funding that benefits viewers throughout the EU and beyond. One wonders whether regulators in other countries share the ITC's opinion."
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
