In the Antitrust Authority's view, the rules as a whole need to be reviewed with a view to arriving at a system in which incentives and financing, whether by central, regional or local government, do not overlap but aim to encourage the development of live entertainment and at the same time guarantee pluralism in cultural offerings.

The report follows a complaint lodged by numerous theatre productions in the city of Rome alleging distortion of competition due to public financing based on political or obscurely motivated choices. Particular mention was made of a number of interventions by the Municipality of Rome and the Region of Latium for theatrical productions, such as assigning funds in-house in favour of Musica per Roma Spa, a company partly owned by the Municipality, the Province and the Region.

In the light of the facts so far to hand, the Antitrust Authority emphasizes that financial support for cultural initiatives, in order to avoid distorting competition, must be governed by clear rules as to the method for choosing the productions and facilities to be financed, transparency in the provision of financing and the most neutral possible management of any public facilities used to accommodate events.

Specifically, the Antitrust Authority believes financing must always be selective and based on open, adequately publicized competitions at fixed intervals. The judging commissions should be made up of persons without conflicts of interest and their evaluations should be made public. Post facto financing intended to cover budget overruns should be abolished since it has an anti-competitive effect, acting to discourage efficiency on the part of operators, both public and private.

Finally, public venues that host live entertainment must be accessible not only to council-owned companies but also to other operators on the cultural scene on the basis of equitable, non- discriminatory and transparent selection criteria.

Rome, 29 July 2008