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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- public service obligation ×

18. March 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Cost of Providing Postal Services
State Aid Blogs - State Aid Uncovered photos 42
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 […]
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23. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Public Service Compensation and Indexation of Costs
State Aid Blogs - State Aid Uncovered photos 2
Introduction Member States may impose public service obligations [PSO] on undertakings and compensate them for the extra costs they incur. The public service compensation [PSC] may also include reasonable profit. Naturally, the PSC may not cover costs that are not related to the PSO or the service of general economic interest [SGEI]. So, for multi-service providers, account separation is absolutely […]
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29. November 2022  |   by Phedon Nicolaides

What Costs Must be Included in Compensation for Public Service Obligations?
State Aid Blogs - State Aid Uncovered SM posts
Introduction The two most difficult issues in imposing a public service obligation on a providers of a service of general economic interest is, first, the correct definition of the obligation and, second, the correct calculation of the amount of compensation that covers only the net extra cost of the service. The correct definition must take into account what the market […]
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23. August 2022  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Cost of Public Service Obligations (Part II)
State Aid Blogs - State Aid Uncovered SM posts 19
Public service obligations must be imposed through an act of entrustment that defines clearly the terms of the service and the duration of the obligation. The “reasonable profit” in the public service compensation should reflect the risk borne by the provider. Introduction In 2009, the Commission received several complaints concerning State aid that Italy had granted to the various shipping […]
read more
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16. August 2022  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Cost of Public Service Obligations (Part I)
State Aid Blogs - State Aid Uncovered SM posts 19
Public service obligations must be imposed through an act of entrustment that defines clearly the terms of the service and the duration of the obligation. The “reasonable profit” in the public service compensation should reflect the risk borne by the provider. Introduction In 2009, the Commission received several complaints concerning State aid that Italy had granted to the various shipping […]
read more
No Comments

- public service obligation ×

18. March 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Cost of Providing Postal Services
State Aid Blogs - State Aid Uncovered photos 42
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 […]
read more
No Comments
23. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Public Service Compensation and Indexation of Costs
State Aid Blogs - State Aid Uncovered photos 2
Introduction Member States may impose public service obligations [PSO] on undertakings and compensate them for the extra costs they incur. The public service compensation [PSC] may also include reasonable profit. Naturally, the PSC may not cover costs that are not related to the PSO or the service of general economic interest [SGEI]. So, for multi-service providers, account separation is absolutely […]
read more
No Comments
29. November 2022  |   by Phedon Nicolaides

What Costs Must be Included in Compensation for Public Service Obligations?
State Aid Blogs - State Aid Uncovered SM posts
Introduction The two most difficult issues in imposing a public service obligation on a providers of a service of general economic interest is, first, the correct definition of the obligation and, second, the correct calculation of the amount of compensation that covers only the net extra cost of the service. The correct definition must take into account what the market […]
read more
No Comments
23. August 2022  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Cost of Public Service Obligations (Part II)
State Aid Blogs - State Aid Uncovered SM posts 19
Public service obligations must be imposed through an act of entrustment that defines clearly the terms of the service and the duration of the obligation. The “reasonable profit” in the public service compensation should reflect the risk borne by the provider. Introduction In 2009, the Commission received several complaints concerning State aid that Italy had granted to the various shipping […]
read more
No Comments
16. August 2022  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Cost of Public Service Obligations (Part I)
State Aid Blogs - State Aid Uncovered SM posts 19
Public service obligations must be imposed through an act of entrustment that defines clearly the terms of the service and the duration of the obligation. The “reasonable profit” in the public service compensation should reflect the risk borne by the provider. Introduction In 2009, the Commission received several complaints concerning State aid that Italy had granted to the various shipping […]
read more
No Comments

- public service obligation ×

18. March 2025  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Cost of Providing Postal Services
State Aid Blogs - State Aid Uncovered photos 42
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 […]
read more
No Comments
23. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Public Service Compensation and Indexation of Costs
State Aid Blogs - State Aid Uncovered photos 2
Introduction Member States may impose public service obligations [PSO] on undertakings and compensate them for the extra costs they incur. The public service compensation [PSC] may also include reasonable profit. Naturally, the PSC may not cover costs that are not related to the PSO or the service of general economic interest [SGEI]. So, for multi-service providers, account separation is absolutely […]
read more
No Comments
29. November 2022  |   by Phedon Nicolaides

What Costs Must be Included in Compensation for Public Service Obligations?
State Aid Blogs - State Aid Uncovered SM posts
Introduction The two most difficult issues in imposing a public service obligation on a providers of a service of general economic interest is, first, the correct definition of the obligation and, second, the correct calculation of the amount of compensation that covers only the net extra cost of the service. The correct definition must take into account what the market […]
read more
No Comments
23. August 2022  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Cost of Public Service Obligations (Part II)
State Aid Blogs - State Aid Uncovered SM posts 19
Public service obligations must be imposed through an act of entrustment that defines clearly the terms of the service and the duration of the obligation. The “reasonable profit” in the public service compensation should reflect the risk borne by the provider. Introduction In 2009, the Commission received several complaints concerning State aid that Italy had granted to the various shipping […]
read more
No Comments
16. August 2022  |   State Aid Uncovered by Phedon Nicolaides

Compensation for the Net Cost of Public Service Obligations (Part I)
State Aid Blogs - State Aid Uncovered SM posts 19
Public service obligations must be imposed through an act of entrustment that defines clearly the terms of the service and the duration of the obligation. The “reasonable profit” in the public service compensation should reflect the risk borne by the provider. Introduction In 2009, the Commission received several complaints concerning State aid that Italy had granted to the various shipping […]
read more
No Comments

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