It’s not everyday that this monkey, or indeed the various journalists and commentators who are also writing about this case, finds it in his heart or logic to defend Rupert Murdoch or his business interests.  He’s a big boy who can look after his own extensive interests – interests that are not necessarily conducive to a flourishing democracy, but that’s another day’s work. 

It’s a complicated story.

Back in the day – or to be precise 1991 – the then government of  Giulio Andreotti passed a motion to lower the rate of V.A.T. to be paid by pay-per-view television. At the time the Telepiù was the only real player in the Italian market, and was a company in which Silvio Berluconi had (through fininvest) a small holding. Later, forced by legislation that limited media ownership (but which permitted him to own three out of 7 national tv channels), Berlusconi sold his stake, which was later bought by Murdoch who subsequently changed the company to become Sky Italy.

Let’s fast forward now to the new measures being introduced by Berlusconi’s government to confront the global economic crisis. One of these measures is to effectively double the VAT for satellite broadcasters. According to Berlusconi this is a move required by the EU to bring Italian broadcasting into line with the rest of Europe. Strangely, for the usually stubborn Italian government, in this case they’re rushing to comply with European norms. NO similar urgency has been given to resolving the Rete 4 situation, though the delay in complying with the ruling brings with it significant penalties for the Italian State (taxpayers). That particular ruling, though,  demands that Berlusconi’s Rete 4 channel be taken off the national airwaves

The increase in VAT, as it’s currently phrased is also a move that hits Rupert Murdoch’s Sky exclusively, and hits it hard. It’s a move that doesn’t effect Berlusconi’s own media channels Mediaset, or the state broadcaster RAI (although his government have also blocked moves to allow for a licence fee increase for RAI in line with inflation).

Here we are again, then, stuck in ‘conflict of interest’ land. Regardless of the rights and the wrongs of the V.A.T. increase, the fact that Berlusconi’s government introduces a measure that will penalise his business competitors makes it an obligation to stand up for Mr Murdoch – however unpalatable that may be.

Not that Berlusconi gives a hoot about criticism regarding conflicts of interest. In the past it has served him well, allowing him to constantly play the poor little billionaire card. This time, though, it will be intersesting to see whether this coy move will pay political as well as business dividends. Sky have 5 million subscribers in Italy, few of which will presumably be happy with a price hike – even of a mere 4.50 a month. If you remember that each subscriber probably has other family members watching the tv you’re talking about a large slice of the public. Sky have already started lambasting the government’s move through ads on its various channels and also on popular sporting programes.

Perhaps more significant is the fact that Rupert Murdoch has reportedly written a ‘far-from-cordial’ note directly to Berlusconi. Even for someone as seemingly untouchable as Berlusconi, it would seem ill-advised to go out of your way to antagonise Murdoch – particularly given that he has access to such a large slice of the Italian public.