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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31. October 2023  |   State Aid Uncovered by Phedon Nicolaides

A Complex Measure of Investment and Operating Aid to an Airport and Airlines (Part II)
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Introduction In July 2008, the Commission received complaints alleging that France granted State aid to the operator of La Rochelle airport and certain airlines. Almost four years later, in February 2012, the Commission decided to open the formal investigation procedure. It eventually adopted a decision in July 2022 [Commission decision 2023/1683] which found compatible State aid for the airport, incompatible […]
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24. October 2023  |   State Aid Uncovered by Phedon Nicolaides

A Complex Measure of Investment and Operating Aid to an Airport and Airlines (Part I)
State Aid Blogs - Untitled design 8
Introduction In July 2008, the Commission received complaints alleging that France granted State aid to the operator of La Rochelle airport and certain airlines. Almost four years later, in February 2012, the Commission decided to open the formal investigation procedure. It eventually adopted a decision in July 2022 [Commission decision 2023/1683] which found compatible State aid for the airport, incompatible […]
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17. October 2023  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Damage
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Introduction On 28 September 2023, the Court of Justice, in case C-320/21 P, Ryanair v European Commission, delivered its first judgment in a series of appeals brought by Ryanair challenging the dismissal by the General Court of its action in multiple cases seeking the annulment of various Commission decisions authorising aid to airlines during the covid-19 pandemic. Both before the […]
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10. October 2023  |   State Aid Uncovered by Phedon Nicolaides

Advance Tax Rulings
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Introduction In 2016, the Commission found, in decision 2016/1699, that advance tax rulings [ATRs] that had been provided by Belgium to multi-national companies [MNCs] with establishments in Belgium constituted State aid because the ATRs set the taxable income of those companies according to a hypothetical average income rather than their actual income. The profit that exceeded that hypothetical average was […]
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2. October 2023  |   State Aid Uncovered by Phedon Nicolaides

The Harm Caused by State aid and the Delineation of the Relevant Market
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Introduction A competitor of an aid recipient who wants to challenge a Commission decision authorising State aid must either show that the aid harms it directly and individually – i.e. its interests are seriously affected to a larger extent than anyone else – or that the Commission should have had doubts about the compatibility of the aid during the preliminary […]
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26. September 2023  |   State Aid Uncovered by Phedon Nicolaides

Non-imposition of Fines on Non-illegal Behaviour
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Introduction Advantage is any benefit that an undertaking obtains from the intervention of the state. In some situations, however, an undertaking may derive an advantage the non-intervention of the state or, more broadly, from the failure of the state to act. This would be the case where the state does not charge a fee to a user of a state […]
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19. September 2023  |   by Phedon Nicolaides

When Are Decisions of State-owned Companies Imputed to the State?
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Introduction According to Article 4 of Regulation 2015/1589 [the Procedural Regulation], when the Commission, after a preliminary examination of a State aid measure, has doubts as to the absence of State aid or the compatibility of the aid with the internal market, it must open the formal examination procedure. The case law says that doubts arise when the Commission encounters […]
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12. September 2023  |   State Aid Uncovered by Phedon Nicolaides

Decarbonisation
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Introduction The Netherlands intends to reduce the emission of greenhouse gasses [GHG] by 55% by the year 2050. For this reason, in June 2023 it notified to the Commission a new version of a scheme, called the “Stimulering Duurzame Energieproductie en Klimaattransitie” [SDE++] which loosely translated means incentivising sustainable production of energy and climate transition. Its purpose is to fund […]
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5. September 2023  |   State Aid Uncovered by Phedon Nicolaides

Transition to a Net-Zero Economy
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Introduction Although the TCTF requires notification of aid measures, it seems to be more user-friendly than State aid guidelines. This is because Member States may simply copy its provisions in their local law or administrative instrument and sent it to the Commission. A case in point is a German scheme that is reviewed in this article. It was notified to […]
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29. August 2023  |   State Aid Uncovered by Phedon Nicolaides

Electricity Storage
State Aid Blogs - State Aid Uncovered SM posts
Introduction As indicated by its title, the Temporary Crisis and Transition Framework [TCTF] allows for State aid whose purpose goes beyond the immediate relief of the costs of the market disruption caused by the Russian invasion of Ukraine. Europe’s energy policy does not only aim to reduce dependence on Russian gas, but also to shift to low or zero carbon […]
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2. October 2023  |   State Aid Uncovered by Phedon Nicolaides

The Harm Caused by State aid and the Delineation of the Relevant Market
State Aid Blogs - Untitled design 7 1
Introduction A competitor of an aid recipient who wants to challenge a Commission decision authorising State aid must either show that the aid harms it directly and individually – i.e. its interests are seriously affected to a larger extent than anyone else – or that the Commission should have had doubts about the compatibility of the aid during the preliminary […]
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No Comments
26. September 2023  |   State Aid Uncovered by Phedon Nicolaides

Non-imposition of Fines on Non-illegal Behaviour
State Aid Blogs - Untitled design 9
Introduction Advantage is any benefit that an undertaking obtains from the intervention of the state. In some situations, however, an undertaking may derive an advantage the non-intervention of the state or, more broadly, from the failure of the state to act. This would be the case where the state does not charge a fee to a user of a state […]
read more
No Comments
12. September 2023  |   State Aid Uncovered by Phedon Nicolaides

Decarbonisation
State Aid Blogs - Untitled design 6
Introduction The Netherlands intends to reduce the emission of greenhouse gasses [GHG] by 55% by the year 2050. For this reason, in June 2023 it notified to the Commission a new version of a scheme, called the “Stimulering Duurzame Energieproductie en Klimaattransitie” [SDE++] which loosely translated means incentivising sustainable production of energy and climate transition. Its purpose is to fund […]
read more
No Comments
5. September 2023  |   State Aid Uncovered by Phedon Nicolaides

Transition to a Net-Zero Economy
State Aid Blogs - Untitled design 25
Introduction Although the TCTF requires notification of aid measures, it seems to be more user-friendly than State aid guidelines. This is because Member States may simply copy its provisions in their local law or administrative instrument and sent it to the Commission. A case in point is a German scheme that is reviewed in this article. It was notified to […]
read more
No Comments
29. August 2023  |   State Aid Uncovered by Phedon Nicolaides

Electricity Storage
State Aid Blogs - State Aid Uncovered SM posts
Introduction As indicated by its title, the Temporary Crisis and Transition Framework [TCTF] allows for State aid whose purpose goes beyond the immediate relief of the costs of the market disruption caused by the Russian invasion of Ukraine. Europe’s energy policy does not only aim to reduce dependence on Russian gas, but also to shift to low or zero carbon […]
read more
No Comments
14. August 2023  |   State Aid Uncovered by Phedon Nicolaides

A Large Investment Project (Part I)
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Introduction According to the latest edition of the State aid Scoreboard, in 2021, Member States granted EUR 14 billion of aid to support regional development. That amount corresponded to about 10% of the total non-crisis aid. What is perhaps more interesting is that close to EUR 12.5 billion or 90% of the total regional aid was granted on the basis […]
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7. August 2023  |   State Aid Uncovered by Phedon Nicolaides

Decarbonisation of Steel Production
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Introduction Many, perhaps the majority, of notifications on the basis of the Guidelines on Climate, Environmental Protection and Energy [CEEAG] concern decarbonisation of production processes. In this context, large amounts of State aid have been funnelled to the decarbonisation of steel production. ArcelorMittal has been a major beneficiary. In February 2023, Spain granted EUR 460 million to support ArcelorMittal to […]
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18. July 2023  |   State Aid Uncovered by Phedon Nicolaides

The Non-economic Nature of a Public Health System and Regional Development
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Introduction This article reviews two judgments: On a public health system and on regional development through capital injections. I. Public health system On 27 April 2023, the Court of Justice rendered its judgment in case C-492/21 P, Casa Regina Apostolorum della Pia Società delle Figlie di San Paolo v European Commission.[1] Casa Regina Apostolorum della Pia Società delle Figlie di […]
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10. July 2023  |   State Aid Uncovered by Phedon Nicolaides

Regional Operating Aid
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Introduction On 21 June 2023, the General Court delivered its judgment in case T-131/21, Região Autónoma da Madeira v European Commission.[1] It rejected the action of the Autonomous Region of Madeira [ARM] by which it sought the annulment of Commission decision 2022/1414 on aid scheme implemented by Portugal for the Madeira Free Zone or Zona Franca da Madeira [ZFM]. The […]
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3. July 2023  |   State Aid Uncovered by Phedon Nicolaides

Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART II)
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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 […]
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30. March 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – April 2015
gavel
Got something to say about State Aid? Want to write something on our Blog? Get in touch with us at Stateaidhub[at]lexxion.eu Thursday 16/04/2015 Judgment in Case C-690/13 Trapeza Eurobank Ergasias (Court of Justice – Ninth Chamber)   Monday 20/04/2015 Hearing in Case C-357/14 P Dunamenti Erőmű v Commission (Court of Justice – Third Chamber)   Wednesday 22/04/2015 Hearing in Case T-499/12 HSH Investment Holdings Coinvest-C and […]
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20. March 2015  |   Guest State Aid Blog by Emma Linklater

In Brief: Case C‑672/13, OTP Bank Nyrt v Magyar Állam, Magyar Államkincstár
otp bank logo
A quick look at the latest ruling of the CJEU from Thursday 19th March.   In Case C‑672/13 OTP Bank the CJEU responded to preliminary ruling questions from the Hungarian Fővárosi Törvényszék relating to the categorisation of an agency agreement concluded in 2008 between the the Ministry of Local Government, the State Treasury and OTP Bank on the basis of Paragraph 24(15) of […]
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18. March 2015  |   Guest State Aid Blog by Emma Linklater

In Brief: AG Opinion, Case C‑39/14 – Bodenverwertungs- und -verwaltungs GmbH (BVVG), Thomas Erbs, Ursula Erbs v Landkreis Jerichower Land
green field
This note takes a look at the Opinion of AG Cruz Villalón, delivered on Tuesday 17th March (not available in English at the time of posting). In his 80 paragraph Opinion the AG proposed that the CJEU reply to the preliminary reference question from the German Bundesgerichtshof as follows:Article 107 TFEU should be interpreted to mean that a rule of […]
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17. March 2015  |   Guest State Aid Blog by Lexxion Publisher

Roundup of EStAL Intensive Workshop, London
workshop
Interactive Seminar on The Role of the Market Economy Investor Principle (MEIP) | Infrastructure Funding in Compliance with State Aid Rules March 11th 2015 was a busy day for the State Aid crowd who gathered at King’s College in London for an Intensive Workshop organized by Lexxion. First of all we would like to thank all those, both speakers and participants, […]
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5. March 2015  |   Guest State Aid Blog by Gherardo Carullo

Procedures for examining abnormally low tenders as a State aid tool? A note on Case C-568/13 Data Medical Service
hospital
A look at the Court’s ruling of 18th December 2014 and the use of abnormally low tenders in public service contracts as indicators of illegal State subsidies. This short note examines Case C-568/13 Data Medical Service on the award of public service contracts, which is particularly interesting from a State aid perspective. While stressing that there are no exclusions whatsoever – at a […]
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4. March 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary – March 2015
gavel, animal figures, euros
A look at the month ahead Got something to say about State Aid? You can get in touch with us at  Stateaidhub[at]lexxion.eu  Thursday 05/03/2015 Judgment in Case C-667/13 Banco Privado Português and Massa Insolvente do Banco Privado Português (Court of Justice – Second Chamber)   Friday 06/03/2015 Hearing in Joined Cases T-60/06 RENV II and T-62/06 RENV II Italy v Commission, Eurallumina v Commission (General Court – First Chamber, […]
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26. February 2015  |   Guest State Aid Blog by Lexxion Publisher

In Brief: T-135/12 and T-385/12 France v Commission and Orange v Commission
france telecom orange logo
The General Court confirmed that France granted State aid compatible with the internal market to France Télécom, in accordance with the conditions laid down by the Commission, and dismissed the actions.   The Press Release can be read here and the rulings (in French) here.Last Thursday 26th February the General Court gave its rulings in Cases T-135/12 and T-385/12 France v Commission and Orange v Commission. In […]
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16. February 2015  |   Guest State Aid Blog by Richard Craven

State aid to football clubs in Croatia?
football clubs in Croatia
GNK Dinamo Zagreb: Will the next act of the sports and State aid saga play out in the EU’s newest capital?     The spectre of EU State aid law has loomed over professional club football in Europe since the Commission’s initiation, in 2013, of in-depth investigations into five football clubs in the Netherlands (SA.33584) and seven clubs in Spain […]
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13. February 2015  |   Guest State Aid Blog by Lexxion Publisher

In brief: C-37/14 Commission v France
fruit and vegetables
On Thursday 12th February the CJEU passed down its ruling in C-37/14, finding that France did not take all necessary measures to recover aid illegally granted to the fruit and vegetable sector and thereby failed to fulfil its obligations under Article 288(4) TFEU. The full ruling is available here and the press release can be accessed here. The aid in question concerned ‘contingency plans’ […]
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10. February 2015  |   Guest State Aid Blog by Lexxion Publisher

Court’s Diary and an invitation to get in touch!
gavel on a laptop
A quick look at the month ahead in the GC/CJEU and reminder about how to get in touch with your news, views and information on how to write a post: Stateaidhub[at]lexxion.de Court’s Diary As we look to the month ahead, there are several State aid cases trickling through the EU Courts to watch out for. Here’s an update from the […]
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