The European Commission has approved the city of Amsterdam’s investment in a local fibre-to-the-home network. The EC launched in December 2006 an investigation into the municipality’s support for Citynet, questioning whether it was in violation of state aid rules. Following an in-depth investigation, the commission concluded that the city is investing on equal terms to a market investor and no state support is involved. Amsterdam is investing alongside housing corporations and financial investors in the network, which will bring high-speed services to households across the city. Amsterdam provided one-third of the initial investment. The network will be operated independently of service providers and open to any ISP. Earlier cable operator UPC had also appealed the city’s support in court, but its complaint was rejected.
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