Spain’s Supreme Court has come down in favour of the tax imposed on telcos to finance national public broadcaster RTVE a year after it was stopped from selling commercial advertising.

Telefónica, Vodafone and Ono had petitioned the Supreme Court to stop the  telco tax – 0.9 per cent of turnover – on the basis it breached European regulations. They also claim it prejudices their competitive position.

However, the Court backed the government policy saying it was in the public interest.

The European Commission, which has stated the tax is illegal, may now start proceedings against the Spanish government.

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