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[Bowdon]

EC Probe State Aid Complaint vs Buckinghamshire FTTP Broadband Project

The European Commission’s Directorate-General for Competition has opened an investigation into the Aylesbury Vale Broadband project over its use of State Aid to roll-out an ultra-fast FTTH broadband network in rural Buckinghamshire, which is despite the presence of a competing wireless network.

The publicly funded effort, which was initially supported by £200,000 from the local Aylesbury Vale District Council (AVDC) and has recently been given another boost of £500,000 to help the network expand, has already made good progress to reach three villages (Granborough, North Marston and Swanbourne) and they hope to cover a total of ten by the end of 2016.

[Bowdon]

So the EU can give money to projects. But a government is banned from giving money? 

[WWWombat]

This case isn't remotely simple.

IIRC, Aylesbury gave money to the company without a tender, without checking for competition, and with competition in the area. And the council owns part of the company, and it is run by some councillors (I'm more vague on the latter part, though).

If the EU find the everything was done in a fair and above-board manner here, I'll eat Paddy Ashdown's hat.

However, the "competition" here was mainly wireless, which was somewhat ignored in the early stages of BDUK. Aylesbury might be able to argue that their behaviour was allowed by the earliest BDUK statements.

So the EU can give money to projects. But a government is banned from giving money? 

Nope. Governments are allowed to give money ... but they have to persuade the EU that it isn't trampling over a competitive market when it does so, and that the money is handed out in a well-controlled manner. Simple ideas for fairness (but not simple to prove).

In the case of BDUK: Government wanted to give money; EU approved it with restrictions; Government agreed restrictions, and gave money; EU also gave money to a few projects too, mostly to cover SME in rural areas.

From the story, and the complaint, it appears that Aylesbury didn't follow the restrictions.

[Weaver]

This may or may not be a case of our distant political masters helping the locals. Or not. Working for (which) common good? If I were the AltNet operator, I'd fell rightly agrieved. (Having experienced being steamrollered out of business by freebies from the state myself.) But whether this development will help the villagers is doubtful. A moral maze?

[niemand]

Fortunately this isn't a moral issue but a legal one.