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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5. March 2024  |   State Aid Uncovered by Phedon Nicolaides

State Aid and Arbitration of Disputes
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Introduction On 22 February 2024, the Court of Justice [CJEU] delivered its judgment in joined Cases C-701/21 P and C-739/21 P, Mytilinaios v DEI & European Commission. Mytilinaios, a Greek company, and the Commission appealed against the judgment of the General Court in case T-639/14 RENV, DEI v Commission, concerning arbitration of a dispute between Mytilinaios and DEI, the main […]
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27. February 2024  |   State Aid Uncovered by Phedon Nicolaides

A Large Regional Investment Project in Spain
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Introduction Most State aid to “large” investment projects is granted by the Member States in Central and Eastern Europe. Moreover, most of the aid goes to induce companies to locate their projects in those countries and to overcome regional handicaps that make the investments less profitable or even loss-making than in other locations. By contrast, regional aid granted to large […]
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20. February 2024  |   State Aid Uncovered by Phedon Nicolaides

Another Case of Indirect State Aid
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Introduction On 19 May 2021, the General Court, in case T-643/20, Ryanair v Commission, annulled Commission decision SA.57116 by which it authorised State aid in favour of KLM in the context of the measures implemented by the Dutch government to address the covid-19 pandemic. In July 2021, the Commission re-adopted its original decision without the errors that had been identified […]
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13. February 2024  |   State Aid Uncovered by Phedon Nicolaides

State Resources, Control and Imputability
State Aid Blogs - State Aid Uncovered photos 1
Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
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6. February 2024  |   State Aid Uncovered by Phedon Nicolaides

Indirect Beneficiaries of State aid
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Introduction The prohibition of State aid in Article 107(1) TFEU applies both to direct and indirect beneficiaries. The direct beneficiary is the formal recipient of the aid. However, the formal recipient may only act as an intermediary through which aid flows to third parties or may in fact be required by the aid measure to pass on some or most […]
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30. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Non-contractual Liability in the Field of State aid
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Introduction The Commission, in its control of State aid, occasionally makes mistakes. EU courts may annul erroneous Commission decisions. This raises the question whether affected undertakings may ask for compensation. The answer is that in order to be eligible for compensation, an undertaking must have suffered damage as a result of an error that constitutes a “serious breach” of EU […]
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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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16. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Undertakings May also Carry out Non-economic Activities
State Aid Blogs - State Aid Uncovered photos 1
Introduction An undertaking is any entity that carries out economic activities regardless of how it is classified in national law or how it is financed. The General Court, in its judgment of 20 December 2023, in case T-166/21, Autorità di sistema portuale del Mar Ligure occidentale v European Commission, also clarified that if an undertaking also carries out tasks assigned […]
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9. January 2024  |   State Aid Uncovered by Phedon Nicolaides

National Court May Order Recovery of Illegal Aid that Is Considered Existing Aid
State Aid Blogs - State Aid Uncovered photos
Introduction The European Commission is required by Regulation 2015/1589 to order recover of State aid that it finds to be incompatible with the internal market. However, it may not order recovery of illegal aid – i.e. non-notified aid – until it assesses its compatibility with the internal market. By contrast, national courts have no competence to assess the compatibility of […]
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2. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Selectivity
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 14 December 2023, the Court of Justice, in its judgment in joined cases C-693/21 P and C-698/21 P, EDP España & Naturgy Energy Group v European Commission, faulted the Commission for failing to provide a sufficient explanation why a Spanish measure was selective in the meaning of Article 107(1) TFEU.1 According to the Court of Justice, the Commission […]
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13. February 2024  |   State Aid Uncovered by Phedon Nicolaides

State Resources, Control and Imputability
State Aid Blogs - State Aid Uncovered photos 1
Introduction A public measure can be classified as State aid only when it is funded from state resources. Measures funded from the budgets of public authorities are always considered to be supported by state resources. However, measures not funded from state budgets may still be supported by state resources. This is because, rather counterintuitively, the concept of state resources covers […]
read more
No Comments
6. February 2024  |   State Aid Uncovered by Phedon Nicolaides

Indirect Beneficiaries of State aid
State Aid Blogs - State Aid Uncovered photos 3
Introduction The prohibition of State aid in Article 107(1) TFEU applies both to direct and indirect beneficiaries. The direct beneficiary is the formal recipient of the aid. However, the formal recipient may only act as an intermediary through which aid flows to third parties or may in fact be required by the aid measure to pass on some or most […]
read more
No Comments
30. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Non-contractual Liability in the Field of State aid
State Aid Blogs - State Aid Uncovered photos 2 1
Introduction The Commission, in its control of State aid, occasionally makes mistakes. EU courts may annul erroneous Commission decisions. This raises the question whether affected undertakings may ask for compensation. The answer is that in order to be eligible for compensation, an undertaking must have suffered damage as a result of an error that constitutes a “serious breach” of EU […]
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
16. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Undertakings May also Carry out Non-economic Activities
State Aid Blogs - State Aid Uncovered photos 1
Introduction An undertaking is any entity that carries out economic activities regardless of how it is classified in national law or how it is financed. The General Court, in its judgment of 20 December 2023, in case T-166/21, Autorità di sistema portuale del Mar Ligure occidentale v European Commission, also clarified that if an undertaking also carries out tasks assigned […]
read more
No Comments
9. January 2024  |   State Aid Uncovered by Phedon Nicolaides

National Court May Order Recovery of Illegal Aid that Is Considered Existing Aid
State Aid Blogs - State Aid Uncovered photos
Introduction The European Commission is required by Regulation 2015/1589 to order recover of State aid that it finds to be incompatible with the internal market. However, it may not order recovery of illegal aid – i.e. non-notified aid – until it assesses its compatibility with the internal market. By contrast, national courts have no competence to assess the compatibility of […]
read more
No Comments
2. January 2024  |   State Aid Uncovered by Phedon Nicolaides

Selectivity
State Aid Blogs - State Aid Uncovered photos 1
Introduction On 14 December 2023, the Court of Justice, in its judgment in joined cases C-693/21 P and C-698/21 P, EDP España & Naturgy Energy Group v European Commission, faulted the Commission for failing to provide a sufficient explanation why a Spanish measure was selective in the meaning of Article 107(1) TFEU.1 According to the Court of Justice, the Commission […]
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27. December 2023  |   State Aid Uncovered by Phedon Nicolaides

The Consequence of the Tax Autonomy of Member States
State Aid Blogs - State Aid Uncovered photos
Introduction The favourable tax treatment of multinational companies has long been in the sights of the Commission. However, the recent judgments on Fiat [C‑885/19 P, Fiat v Commission] and Engie [C‑454/21 P, Engie v Commission] have made it clear that Commission may not rely on principles which are not recognised in the tax laws of Member States. This fundamental rule […]
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21. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Recovery of Incompatible Aid in an Agreement between an Airport and an Airline
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Introduction On 23 November 2023, the Court of Justice, in case C-758/21 P, Ryanair v European Commission, rejected Ryanair’s action against the judgment of the General Court in case T-448/18, Ryanair v European Commission.1 In its judgment, the General Court dismissed Ryanair’s appeal against Commission decision 2018/628. In that decision, the Commission found, among other things, that Austria had granted […]
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19. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Indirect Advantage
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Introduction It is an established principle in the State aid case law that Article 107(1) TFEU applies both to direct and possibly indirect aid beneficiaries. Yet, it is not always easy to identify any indirect beneficiaries. On 15 November 2023, the General Court, in case T-167/21, European Gaming and Betting Association v European Commission, faulted the latter for failing to […]
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2. June 2016  |   Guest State Aid Blog by Erika Ellyne

Frucona Revisited: Confusing EDF and Placing the Burden of Proof Where it Belongs
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We are happy to welcome Erika Ellyne on the State Aid Blog today. She is a lawyer at Van Bael & Bellis law firm where she works on EU competition law matters. Previously she was a researcher at the VUB University and the LSTS research center, where she is still an affiliate. Today she gives her insights on the Frucona […]
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1. June 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – June 2016
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Find below the court’s diary for all State aid cases this month. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.   Thursday 09/06/2016   Judgment in Case T-162/13 – Magic Mountain Kletterhallen and Others v Commission (General […]
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2. May 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – May 2016
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Find below the court’s diary for all State aid cases this month. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.   Tuesday 10/05/2016 Judgment in Case T-47/15 – Germany v Commission (General Court – Third Chamber)   […]
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4. April 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – April 2016
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Find below the court’s diary for all State aid cases this month. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.   Thursday 14/04/2016 Judgment in Case C-100/15 P – Netherlands Maritime Technology Association v Commission (Court of […]
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4. March 2016  |   Guest State Aid Blog by G. Guðmundsson

Being a Competition and State Aid Trainee at the EFTA Surveillance Authority
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We are happy to welcome two young professionals on the State Aid Blog today. Guðmundur Guðmundsson and Amie Eliassen are trainees at EFTA Surveillance Authority in the Competition and State Aid Directorate and give their insights on working in this dynamic and multicultural work environment. You want to apply for a traineeship yourself? Read on for more information.   The […]
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3. March 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – March 2016
gavel
Find below the court’s diary for all State aid cases. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.   Tuesday 01/03/2016 Judgment in Case T-79/14 – Secop v Commission (General Court – First Chamber) Thursday 03/03/2016 Judgment […]
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1. February 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – February 2016
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Find below the court’s diary for all State aid cases. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog   Thursday 04/02/2016 Judgment in Case T-287/11 – Heitkamp BauHolding v Commission (General Court – Ninth Chamber) Judgment in […]
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1. January 2016  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – January 2016
gavel
Find below the court’s diary for all State aid cases. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog.     Thursday 28/01/2016 Judgment in T-507/12 -Slovenia v Commission (General Court – Fifth Chamber) Do you know we also publish […]
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12. December 2015  |   Guest State Aid Blog by Lexxion Publisher

Top 3 State Aid Blog Posts from 2015
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From Amazon’s ‘advance pricing agreement’ over State aid to the Hungarian electricity market to Black Cabs’ exclusive rights in London, our guest bloggers on the StateAidHub have shed light on various controversial State aid judgments and developments. View now the most popular posts of 2015.   As 2015 and therefore the StateAidHub’s first year draws to a close, we thank […]
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3. December 2015  |   Guest State Aid Blog by Emanuela Matei

The Interpretation of Conflicting Norms regarding the Validity of State Aid Infolding Contracts Must Be Consistent with the Safeguard of Individual Rights Created by EU State Aid Law (C 505/14, Klausner)
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The following blog post is another contributory piece by Emanuela Matei, Associate Researcher at the Centre of European Legal Studies, Bucharest. Matei holds a Juris Master in European Business Law (Lund University, June 2012), a Magister legum (Lund University, June 2010) and a BSc in Economics & Business Administration (Lund University, June 2009). We are very glad to welcome her […]
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