State Aid Law Blog

State Aid Uncovered Blog

In Lexxion’s State Aid Uncovered blog, Prof. Phedon Nicolaides publishes weekly critical analyses of recent State aid judgments and decisions. Each post presents the key points of a court judgment or EU Commission decision, places it in the context of similar case law or practice, assesses the underlying reasoning and highlights any inconsistencies or contradictions.

Guest contributions from other State aid experts will also be published on the blog at irregular intervals to complement the content of the blog posts.

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- Altmark ×

20. January 2026  |   by Phedon Nicolaides

Definition of Public Service Obligation & Calculation of Public Service Compensation – PART II
Definition of Public Service Obligation & Calculation of Public Service and Compensation
A competitive selection process whereby only one bidder submits an offer does not conform with the fourth Altmark condition. Introduction Commission decision 2025/2453 that was published in the Official Journal of 30 December 2025 approved State aid totalling EUR 853.6 million in the form of public service compensation [PSC] for Corsica Linea and La Méridionale.[1] The PSC was granted by […]
read more
No Comments
13. January 2026  |   by Phedon Nicolaides

Definition of Public Service Obligation & Calculation of Public Service Compensation – PART I
Definition of Public Service Obligation & Calculation of Public Service and Compensation
A competitive selection process whereby only one bidder submits an offer does not conform with the fourth Altmark condition. Introduction Commission decision 2025/2453 that was published in the Official Journal of 30 December 2025 approved State aid totalling EUR 853.6 million in the form of public service compensation [PSC] for Corsica Linea and La Méridionale.[1] The PSC was granted by […]
read more
No Comments
9. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation to the Operator of a Canal Lock that Provides Free Services May Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 86
Introduction State aid rules are often perceived as straightjacket on Member State policies. Yet, the fundamental logic of the criteria used by the Commission and endorsed by EU courts to determine the compatibility of state aid force Member States to ask, at minimum, why they intervene, what is the most appropriate method of intervention and how much money is required […]
read more
No Comments
3. July 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART II)
State Aid Blogs - Untitled design 17
Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T‑79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]
read more
No Comments
27. June 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART I)
State Aid Blogs - Untitled design 3 1
Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T-79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]
read more
No Comments
15. September 2020  |   State Aid Uncovered by Phedon Nicolaides

Non-economic Activities and Services of General Economic Interest
State Aid Blogs - environmental protection 683437 1280
Non-economic tasks and economic activities which are inseparable from those non-economic tasks are together, as a bundle, non-economic in nature. Public compensation for the extra costs of services of general economic interest [SGEI] may not cross-subsidise activities that fall outside the scope of the SGEI. Update on Temporary Framework: Number of approved and published covid-19 measures, as of 11 September […]
read more
No Comments
7. April 2020  |   State Aid Uncovered by Phedon Nicolaides

EU Decisions Override National Decisions on Compensation for Public Service Obligations
State Aid Blogs - StateAidHub blogpost14 Public Service Obligations 1
The principle of res judicata cannot be used to avoid recovery of incompatible State aid.   An update on State aid measures to counter the impact of COVID-19 As of 3 April 2020, the Commission has approved 29 measures submitted by 16 Member States. Article 107(3)(b) is the legal basis for 26 of those measures, while Article 107(2)(b) is the […]
read more
No Comments
4. February 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation
State Aid Blogs - StateAidHub blogpost5 SGEI
The “net avoided cost methodology” takes into account only incremental costs. Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. […]
read more
No Comments
14. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Altmark, again!
State Aid Blogs - m 5 2
Sectoral regulation is not the same as definition of public service obligation. Aid that favours a certain technology is incompatible with the internal market, unless it can be objectively justified.   Introduction “Altmark” has become a permanent feature in the landscape of State aid. Its application was again one of the main issues of contention in six judgments rendered by […]
read more
1 Comment
27. October 2015  |   State Aid Uncovered by Phedon Nicolaides

The Perennial Altmark Questions
State Aid Blogs - m 5 2
A SGEI provider does not have to be efficient by industry standards in order to receive compensation for its next extra costs. Although the conditions for compatibility of public service compensation under Article 106(2) TFEU appear to be similar to the Altmark criteria, they have very different objectives.   Introduction Even since the Altmark judgment of July 2003, public authorities […]
read more
No Comments
Next Page »

- Altmark ×

20. January 2026  |   by Phedon Nicolaides

Definition of Public Service Obligation & Calculation of Public Service Compensation – PART II
Definition of Public Service Obligation & Calculation of Public Service and Compensation
A competitive selection process whereby only one bidder submits an offer does not conform with the fourth Altmark condition. Introduction Commission decision 2025/2453 that was published in the Official Journal of 30 December 2025 approved State aid totalling EUR 853.6 million in the form of public service compensation [PSC] for Corsica Linea and La Méridionale.[1] The PSC was granted by […]
read more
No Comments
13. January 2026  |   by Phedon Nicolaides

Definition of Public Service Obligation & Calculation of Public Service Compensation – PART I
Definition of Public Service Obligation & Calculation of Public Service and Compensation
A competitive selection process whereby only one bidder submits an offer does not conform with the fourth Altmark condition. Introduction Commission decision 2025/2453 that was published in the Official Journal of 30 December 2025 approved State aid totalling EUR 853.6 million in the form of public service compensation [PSC] for Corsica Linea and La Méridionale.[1] The PSC was granted by […]
read more
No Comments
9. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation to the Operator of a Canal Lock that Provides Free Services May Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 86
Introduction State aid rules are often perceived as straightjacket on Member State policies. Yet, the fundamental logic of the criteria used by the Commission and endorsed by EU courts to determine the compatibility of state aid force Member States to ask, at minimum, why they intervene, what is the most appropriate method of intervention and how much money is required […]
read more
No Comments
3. July 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART II)
State Aid Blogs - Untitled design 17
Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T‑79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]
read more
No Comments
27. June 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART I)
State Aid Blogs - Untitled design 3 1
Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T-79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]
read more
No Comments
15. September 2020  |   State Aid Uncovered by Phedon Nicolaides

Non-economic Activities and Services of General Economic Interest
State Aid Blogs - environmental protection 683437 1280
Non-economic tasks and economic activities which are inseparable from those non-economic tasks are together, as a bundle, non-economic in nature. Public compensation for the extra costs of services of general economic interest [SGEI] may not cross-subsidise activities that fall outside the scope of the SGEI. Update on Temporary Framework: Number of approved and published covid-19 measures, as of 11 September […]
read more
No Comments
7. April 2020  |   State Aid Uncovered by Phedon Nicolaides

EU Decisions Override National Decisions on Compensation for Public Service Obligations
State Aid Blogs - StateAidHub blogpost14 Public Service Obligations 1
The principle of res judicata cannot be used to avoid recovery of incompatible State aid.   An update on State aid measures to counter the impact of COVID-19 As of 3 April 2020, the Commission has approved 29 measures submitted by 16 Member States. Article 107(3)(b) is the legal basis for 26 of those measures, while Article 107(2)(b) is the […]
read more
No Comments
4. February 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation
State Aid Blogs - StateAidHub blogpost5 SGEI
The “net avoided cost methodology” takes into account only incremental costs. Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. […]
read more
No Comments
14. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Altmark, again!
State Aid Blogs - m 5 2
Sectoral regulation is not the same as definition of public service obligation. Aid that favours a certain technology is incompatible with the internal market, unless it can be objectively justified.   Introduction “Altmark” has become a permanent feature in the landscape of State aid. Its application was again one of the main issues of contention in six judgments rendered by […]
read more
1 Comment
27. October 2015  |   State Aid Uncovered by Phedon Nicolaides

The Perennial Altmark Questions
State Aid Blogs - m 5 2
A SGEI provider does not have to be efficient by industry standards in order to receive compensation for its next extra costs. Although the conditions for compatibility of public service compensation under Article 106(2) TFEU appear to be similar to the Altmark criteria, they have very different objectives.   Introduction Even since the Altmark judgment of July 2003, public authorities […]
read more
No Comments
Next Page »

- Altmark ×

20. January 2026  |   by Phedon Nicolaides

Definition of Public Service Obligation & Calculation of Public Service Compensation – PART II
Definition of Public Service Obligation & Calculation of Public Service and Compensation
A competitive selection process whereby only one bidder submits an offer does not conform with the fourth Altmark condition. Introduction Commission decision 2025/2453 that was published in the Official Journal of 30 December 2025 approved State aid totalling EUR 853.6 million in the form of public service compensation [PSC] for Corsica Linea and La Méridionale.[1] The PSC was granted by […]
read more
No Comments
13. January 2026  |   by Phedon Nicolaides

Definition of Public Service Obligation & Calculation of Public Service Compensation – PART I
Definition of Public Service Obligation & Calculation of Public Service and Compensation
A competitive selection process whereby only one bidder submits an offer does not conform with the fourth Altmark condition. Introduction Commission decision 2025/2453 that was published in the Official Journal of 30 December 2025 approved State aid totalling EUR 853.6 million in the form of public service compensation [PSC] for Corsica Linea and La Méridionale.[1] The PSC was granted by […]
read more
No Comments
9. December 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation to the Operator of a Canal Lock that Provides Free Services May Constitute State Aid
State Aid Blogs - State Aid Uncovered photos 86
Introduction State aid rules are often perceived as straightjacket on Member State policies. Yet, the fundamental logic of the criteria used by the Commission and endorsed by EU courts to determine the compatibility of state aid force Member States to ask, at minimum, why they intervene, what is the most appropriate method of intervention and how much money is required […]
read more
No Comments
3. July 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART II)
State Aid Blogs - Untitled design 17
Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T‑79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]
read more
No Comments
27. June 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART I)
State Aid Blogs - Untitled design 3 1
Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the General Court, in case T-79/21, Ryanair & Airport Marketing Services v European Commission, ruled that public authorities still confer an abnormal advantage by buying good and services that they […]
read more
No Comments
15. September 2020  |   State Aid Uncovered by Phedon Nicolaides

Non-economic Activities and Services of General Economic Interest
State Aid Blogs - environmental protection 683437 1280
Non-economic tasks and economic activities which are inseparable from those non-economic tasks are together, as a bundle, non-economic in nature. Public compensation for the extra costs of services of general economic interest [SGEI] may not cross-subsidise activities that fall outside the scope of the SGEI. Update on Temporary Framework: Number of approved and published covid-19 measures, as of 11 September […]
read more
No Comments
7. April 2020  |   State Aid Uncovered by Phedon Nicolaides

EU Decisions Override National Decisions on Compensation for Public Service Obligations
State Aid Blogs - StateAidHub blogpost14 Public Service Obligations 1
The principle of res judicata cannot be used to avoid recovery of incompatible State aid.   An update on State aid measures to counter the impact of COVID-19 As of 3 April 2020, the Commission has approved 29 measures submitted by 16 Member States. Article 107(3)(b) is the legal basis for 26 of those measures, while Article 107(2)(b) is the […]
read more
No Comments
4. February 2020  |   State Aid Uncovered by Phedon Nicolaides

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation
State Aid Blogs - StateAidHub blogpost5 SGEI
The “net avoided cost methodology” takes into account only incremental costs. Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. […]
read more
No Comments
14. December 2015  |   State Aid Uncovered by Phedon Nicolaides

Altmark, again!
State Aid Blogs - m 5 2
Sectoral regulation is not the same as definition of public service obligation. Aid that favours a certain technology is incompatible with the internal market, unless it can be objectively justified.   Introduction “Altmark” has become a permanent feature in the landscape of State aid. Its application was again one of the main issues of contention in six judgments rendered by […]
read more
1 Comment
27. October 2015  |   State Aid Uncovered by Phedon Nicolaides

The Perennial Altmark Questions
State Aid Blogs - m 5 2
A SGEI provider does not have to be efficient by industry standards in order to receive compensation for its next extra costs. Although the conditions for compatibility of public service compensation under Article 106(2) TFEU appear to be similar to the Altmark criteria, they have very different objectives.   Introduction Even since the Altmark judgment of July 2003, public authorities […]
read more
No Comments
Next Page »

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