COSMOTE, VODAFONE, NOVA – WIND requested extension of the suspension of the subscription fee until the end of 2023

Of Foti Foteinou

It is one of the issues that “come together”. COSMOTE, VODAFONE and NOVA – WIND, through the Association of Mobile Telephony Companies, sent a letter to the Greek government, requesting the extension of the suspension of the pay-TV fee until the end of 2023.

The imposition of a fee on pay-TV in favor of the Greek state was instituted in 2016, under the name “end to pay-TV”.

This charges subscribers to 10% of the total monthly bill of each subscription, including the flat fee charged to the business before value added tax.

This fee was suspended by law 4728/2020 for the period from 1 October 2020 to 30 September 2021 and thereafter until 30 June 2022.

The purpose of the suspension of the levy was to reduce the total burden on the accounts of final consumers, in the context of the provision of subscription services during the pandemic period.

Now, the Greek government, following the new, official request of EEKT, is called in the coming days to take an important decision: Either the abolition of the suspension, opera and means a 10% increase in pay-TV bills, or a new extension of the suspension of collection of.

Lifting the levy may be an “unpleasant” development for the consumer, but a “pleasant” one for public funds.

This is because COSMOTE, VODAFONE and WIND – NOVA alone are estimated to have more than 1.1 – 1.2 million subscribers.

On the other hand, if the suspension of the fee is lifted, then the telecommunications companies COSMOTE, VODAFONE and NOVA – WIND will strongly “push” the government to impose the fee on all digital platforms (NETFLIX, Amazon Prime, Apple TV, Disney +, etc.).

If this happens, it remains to be seen how the Greek State will be able to “impose” the subscription fee on companies based abroad.

European and Greek legislation

In Greece, this issue, according to analysts of the telecommunications market, is considered “of paramount importance”.

This is because, e.g. Netflix alone is estimated to have 400,000 – 500,000 subscribers in Greece, when cumulatively COSMOTE TV, NOVA – WIND and VODAFONE are estimated to have about 1.1 – 1.2 million subscribers.

Telecommunications market executives speak of “unfair competition”, arguing that, while e.g. Netflix enjoys tax “immunity” (and) in our country, domestic platforms shoulder all the prescribed taxes (subscription tax, corporate tax, VAT, etc.).

At this point, they are bidding on the investments made in Greece in infrastructure and staff, in contrast to the international digital platforms under consideration, except for a few producers (eg the Beckett film).

It is noted that, at EU level, with the revision of Directive 2010/13 / EU on audiovisual media services (Directive 2018/1808), the EU rules on audiovisual media were updated, in order to create a fairer environment.

In the above context, it is particularly important to provide for Directive 2018/1808 regarding the possibility for Member States to impose financial contributions on media service providers, through direct investments or contributions to national funds to support audiovisual production.

Financial contributions can be levied not only on providers established in the competent Member State, but also on those targeting the Member State while based elsewhere, strengthening the support of the domestic audiovisual industry for each Member State.

The above provision of the Directive was incorporated in the Greek legislation with article 17 of Law 4779/2021.

The above article, therefore, provides the opportunity for Greece to impose financial obligations for the promotion of European producers – namely Greek audiovisual producers – and to custom service providers who are not established in the territory, but provide such services targeting the country. .

For the calculation of these obligations, the turnover of the customer service provider in Greece is taken into account.

Finally, it is possible to exempt from the relevant obligation providers to order services with a small market share or low turnover.