Government aid for newspapers is in the spotlight again, The Wall Street Journal reports. The head of the Federal Trade Commission (FTC) in the U.S. has announced plans to examine whether subsidies and regulatory changes should be implemented.

Speaking at its workshop last week, FTC Chairman Jon Leibowitz said that his agency will consider whether the government should exempt news organisations from antitrust laws, change copyright laws, or allow them special tax treatment.

Government subsidies for commercial news organisations were also a possibility, he added.

"We should be able to take action if necessary to preserve the news that is vital to democracy," he said.

He cautioned, though, that changes in the news publishing industry should be better understood before making changes to policy. "I think the message from today is be very, very cautious before you do anything," he said.

Media executives are wary of government intervention in the industry, though. At the same event, Rupert Murdoch rejected government aid for the press, citing concerns over freedom of expression. He also reaffirmed his commitment to paid online content.

Government subsidies for newspapers operate in France, where the press received €1.2bn in government aid in 2008, which amounts to 12% of the sector's revenue. A free newspaper scheme for young people has also been implemented. Critics of the scheme include Frédéric Filloux, editor of Schibsted, who has argued that the subsidies have been used to justify unnecessary expenditure.

The government in Sweden also subsidises its newspaper industry. Critics have complained that the subsidy stifles competition.

There is a tension, of course, in the idea of government subsidises for news organisations which ideally hold governments accountable. This model has a precedent in the long history of public broadcasting, but whether newspapers in the U.S. can or should follow suit is as yet undecided.

Sources: The Wall Street Journal, Editor and Publisher, AFP-MediaWatch