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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13. October 2020 | State Aid Uncovered by Phedon Nicolaides

Market Economy Operator Principle: The Case of FIH

State Aid Blogs - danish currency 1139103 1920

Negotiated transactions are not necessarily market conform. Update on Temporary Framework: Number of approved and published covid-19 measures, as of 9 October 2020: 295* Legal basis: Article 107(2)(b): 32; Article 107(3)(b): 248; Article 107(3)(c): 23 – Average number of measures per Member State: 10.5 – Median number of measures per Member State: 12 – Mode number of measures per Member […]

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23. December 2019 | State Aid Uncovered by Phedon Nicolaides

A Preferential Electricity Tariff Is Selective, Confers an Advantage and Distorts Competition

State Aid Blogs - StateAidUncovered blogpost53 Alouminion

A judicial decision on interim measures is a selective measure. The private investor test does not apply to judicial decisions on interim measures. Introduction On 11 December 2019, in case C‑332/18 P, Mytilinaios Anonymos Etairia — Omilos Epicheiriseon v European Commission, the Court of Justice probably wrote the last chapter in a long-running case concerning privileges that had been granted […]

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3. December 2019 | State Aid Uncovered by Phedon Nicolaides

Separability of Economic from Non-economic Activities

State Aid Blogs - StateAidHub blogpost50 2019 lexxion economy printing non economic Stateaid SGEI

Activities which are inseparable from the exercise of official powers are non-economic. Introduction Pure research whose results are widely disseminated is undoubtedly a non-economic activity. Research reports are often published on the internet. But the design and management of a research organisation’s website can be an economic activity. Plenty of private companies provide these services for a fee. Does […]

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19. November 2019 | State Aid Uncovered by Phedon Nicolaides

Compensation to a Toll Road Operator

State Aid Blogs - StateAidHub blogpost48 toll road motorways Poland obligations StateAid

Contractual obligation to provide compensation that does not exceed the loss of income is not State aid. Introduction When is a company entitled to compensation by the state? The easy answer is “when the state is liable for damage”. However, it may be possible for a company to claim compensation from the state when the state has assumed contractual obligations. […]

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22. October 2019 | State Aid Uncovered by Phedon Nicolaides

Production of Green Electricity

State Aid Blogs - StateAidHub blogpost44 greenelectricity

Member States may reduce the amount of State aid they grant and companies may not claim they have a right to State aid. Introduction Close to 60% of all aid granted to industry and services in the EU goes to support environmental protection, energy efficiency and the generation of electricity from renewable sources of energy. However, as technology improves, the […]

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18. June 2019 | State Aid Uncovered by Phedon Nicolaides

Is it OK to Tax Company Size?*

Progressive tax rates that are consistent with the objective of the tax system are not necessarily selective. Introduction Member States are free to design their corporate tax systems as long as they do not grant State aid or infringe fundamental internal market freedoms. A question that arises in discussions on what Member States may or may not do when designing […]

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11. June 2019 | State Aid Uncovered by Phedon Nicolaides

I) Unlimited State Guarantees II) Effect on Trade

State Aid Blogs - StateAidHub blogpost23

A competitor who wants to challenge a Commission decision authorising State aid without a formal investigation must, first, show that it is seriously harmed by the aid. Introduction This week’s article reviews two judgments: one on unlimited state guarantees granted by France [case T-135/17, Scor v European Commission][1] and another on aid that was found not to affect trade between Member […]

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21. May 2019 | State Aid Uncovered by Phedon Nicolaides

There Is No Threshold below which Economic Activities Can Be Considered to be Non-economic

State Aid Blogs - StateaidHub blogpost20 Lexxion Port Economic Activities

Non-economic activities have to be accounted separately from economic activities. The exercise of public tasks assigned by the state cannot protect an undertaking from State aid rules. State aid distorts competition even when it aims to remedy distortions. Introduction Ports, like other transport infrastructures, may operate under public obligations some of which may be of economic and some of non-economic […]

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30. April 2019 | State Aid Uncovered by Phedon Nicolaides

The Commission Must Explain its Decision

State Aid Blogs - StateAid Blogpost17 2019 Lexxion UPS DeutschePost Eu Commission State Aid

A Commission decision that affects the legal position of an undertaking is actionable before EU courts. The opening of the formal investigation procedure must lead the Member State concerned to suspend the aid measure and may result in a recovery ruling by a national court. The Commission must be consistent in its reasoning. If it cannot use certain information at […]

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16. April 2019 | State Aid Uncovered by Phedon Nicolaides

Spanish Football Clubs Score against the Commission: a) Linked Advantages and Disadvantages Must be Assessed Together b) In Determining the Existence of an Advantage, the Commission Must Explain both what it Takes into Account and what it Ignores

State Aid Blogs - StateAidHub blogpost15 Soccer loans Lexxion Spain EU Commission

State measures which are linked and produce both positive and negative effects, must be considered together to determine whether they confer a net advantage to undertakings. Counter-guarantees must be taken into account to determine the existence of advantage even if they are provisional. Introduction Member States have in a number of cases tried to defend tax reductions or tax […]

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13. October 2020 | State Aid Uncovered by Phedon Nicolaides

Spanish Football Clubs Score against the Commission: a) Linked Advantages and Disadvantages Must be Assessed Together b) In Determining the Existence of an Advantage, the Commission Must Explain both what it Takes into Account and what it Ignores

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13. October 2020 | State Aid Uncovered by Phedon Nicolaides

Spanish Football Clubs Score against the Commission: a) Linked Advantages and Disadvantages Must be Assessed Together b) In Determining the Existence of an Advantage, the Commission Must Explain both what it Takes into Account and what it Ignores

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State Aid Uncovered Blog

undertaking in difficulty ×

Market Economy Operator Principle: The Case of FIH

A Preferential Electricity Tariff Is Selective, Confers an Advantage and Distorts Competition

Separability of Economic from Non-economic Activities

Compensation to a Toll Road Operator

Production of Green Electricity

Is it OK to Tax Company Size?*

I) Unlimited State Guarantees II) Effect on Trade

There Is No Threshold below which Economic Activities Can Be Considered to be Non-economic

The Commission Must Explain its Decision

Spanish Football Clubs Score against the Commission: a) Linked Advantages and Disadvantages Must be Assessed Together b) In Determining the Existence of an Advantage, the Commission Must Explain both what it Takes into Account and what it Ignores

undertaking in difficulty ×

Market Economy Operator Principle: The Case of FIH

A Preferential Electricity Tariff Is Selective, Confers an Advantage and Distorts Competition

Separability of Economic from Non-economic Activities

Compensation to a Toll Road Operator

Production of Green Electricity

Is it OK to Tax Company Size?*

I) Unlimited State Guarantees II) Effect on Trade

There Is No Threshold below which Economic Activities Can Be Considered to be Non-economic

The Commission Must Explain its Decision

Spanish Football Clubs Score against the Commission: a) Linked Advantages and Disadvantages Must be Assessed Together b) In Determining the Existence of an Advantage, the Commission Must Explain both what it Takes into Account and what it Ignores

undertaking in difficulty ×

Market Economy Operator Principle: The Case of FIH

A Preferential Electricity Tariff Is Selective, Confers an Advantage and Distorts Competition

Separability of Economic from Non-economic Activities

Compensation to a Toll Road Operator

Production of Green Electricity

Is it OK to Tax Company Size?*

I) Unlimited State Guarantees II) Effect on Trade

There Is No Threshold below which Economic Activities Can Be Considered to be Non-economic

The Commission Must Explain its Decision

Spanish Football Clubs Score against the Commission: a) Linked Advantages and Disadvantages Must be Assessed Together b) In Determining the Existence of an Advantage, the Commission Must Explain both what it Takes into Account and what it Ignores

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