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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- universal service obligation ×

Compensation for the Net Cost of Providing Postal Services

Introduction Significant changes have occurred in the postal sector across Europe. Partly as a result of the covid-19 pandemic and partly due to technological evolution, letter deliveries have declined precipitously while parcel deliveries have increased substantially. At the same time digital mail has become ubiquitous. For example, in early March 2025, NordPost, the postal incumbent in Denmark and Sweden announced […]

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation

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. […]

- universal service obligation ×

Compensation for the Net Cost of Providing Postal Services

Introduction Significant changes have occurred in the postal sector across Europe. Partly as a result of the covid-19 pandemic and partly due to technological evolution, letter deliveries have declined precipitously while parcel deliveries have increased substantially. At the same time digital mail has become ubiquitous. For example, in early March 2025, NordPost, the postal incumbent in Denmark and Sweden announced […]

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation

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. […]

- universal service obligation ×

Compensation for the Net Cost of Providing Postal Services

Introduction Significant changes have occurred in the postal sector across Europe. Partly as a result of the covid-19 pandemic and partly due to technological evolution, letter deliveries have declined precipitously while parcel deliveries have increased substantially. At the same time digital mail has become ubiquitous. For example, in early March 2025, NordPost, the postal incumbent in Denmark and Sweden announced […]

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation

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. […]

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