EU approves 150 mln euros French aid for public TV

BRUSSELS, July 17 (Reuters) - The European Commission allowed France on Thursday to give 150 million euros ($239 million) in state aid to its public television.

The European Union executive said the aid would not distort competition on the media market because the aid would compensate France Televisions for its mission to provide quality programming that does not attract advertising revenue.

"The 150 million euros capital injection should enable France Televisions to fulfil its current tasks while the reform measures are under discussion," EU Competition Commissioner Neelie Kroes said in a statement.

"I am closely following developments on the French audiovisual market and the initiatives aimed at refocusing France Televisions and enhancing its ability to carry out the public-service missions."

The injection comes as President Nicolas Sarkozy presses ahead with plans to ban advertising on public TV and radio.

The reform is widely seen as a boon for private broadcasters TF1 (TFFP.PA: Quote, Profile, Research) and M6 (MMTP.PA: Quote, Profile, Research), which could grab the bulk of the estimated one billion euros in advertising that would exit public channels.

The Commission is tasked with scrutinising whether state aid does not distort competition in the single market of the 27-nation bloc. (Writing by Marcin Grajewski; editing by Mark John)