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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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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11. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Member States Have Discretion to Determine their Own Tax System and Interpret its Provisions
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Introduction In the landmark cases on turnover taxes implemented by Hungary and Poland, the Court of Justice censured the European Commission for defining its own hypothetical reference tax system that was different from the relevant tax provisions in those two countries. The Court again faulted the Commission in its more recent judgments on advance tax rulings. Given the discretion of […]
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4. December 2023  |   State Aid Uncovered by Phedon Nicolaides

The Concept of Undertaking and Land Valuation
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Introduction Must an entity that acquires an asset but does not exploit it commercially not be regarded as an undertaking? This was one of two questions that the Court of Justice had to answer on 19 October 2023, in case C-325/22, TS & HI. The answer was no. The second question was how to value land. The answer to that […]
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27. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Damage Caused by COVID-19 May be Limited to the Undertakings that Are Most Important to the Economy of a Member Stat
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Introduction On 23 November 2023, Ryanair lost another appeal before the Court of Justice. The Court ruled, in case C-210/21 P, Ryanair v Commission, that the General Court was right to dismiss Ryanair’s request for annulment of a Commission decision that had authorised French aid to compensate airlines for the damage they suffered as a result of the covid-19-related travel […]
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20. November 2023  |   State Aid Uncovered by Phedon Nicolaides

State Guarantees
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Introduction Public authorities often grant guarantees to undertakings so that the latter can borrow commercial loans at lower rates of interest. The 2008 Commission Notice on guarantees sets out four cumulative conditions that create a presumption that a state guarantee is free of State aid: 1. The borrower is not in financial difficulty. 2. The guarantee must be linked to […]
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16. November 2023  |   Guest State Aid Blog by Michał Bernat

The Interplay of R&D Works and Formal Incentive Effect Rules
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The Interplay of R&D Works and Formal Incentive Effect Rules Michał Bernat.1 The issue mentioned in the title appears at first sight rather uncontroversial, as it is instinctively understood that research and development (R&D) works do not form part of an investment towards which they are directed, but this brief note raises certain issues arising in that respect which have […]
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14. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Start of Works
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Introduction Perhaps the most important criterion for the compatibility of State aid with the internal market is the incentive effect. This means that State aid is capable of changing the behaviour of the recipient undertaking. State aid is normally considered not to have an incentive effect when the recipient undertaking is already committed to launch a project or has already […]
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7. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Whether a Tax Measure Grants New Aid Must also be Assessed in the Context of the Relevant National Case Law
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Introduction The application of the concept of selectivity to tax measures requires a comparison of undertakings or activities that are in a similar factual or legal situation. A tax measure that differentiates between similar undertakings or activities is selective in the meaning of Article 107(1) TFEU, unless the differentiation can be justified on objective reasons. It follows that the proper […]
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11. December 2023  |   State Aid Uncovered by Phedon Nicolaides

Member States Have Discretion to Determine their Own Tax System and Interpret its Provisions
State Aid Blogs - Untitled design 29
Introduction In the landmark cases on turnover taxes implemented by Hungary and Poland, the Court of Justice censured the European Commission for defining its own hypothetical reference tax system that was different from the relevant tax provisions in those two countries. The Court again faulted the Commission in its more recent judgments on advance tax rulings. Given the discretion of […]
read more
No Comments
4. December 2023  |   State Aid Uncovered by Phedon Nicolaides

The Concept of Undertaking and Land Valuation
State Aid Blogs - Untitled design 15
Introduction Must an entity that acquires an asset but does not exploit it commercially not be regarded as an undertaking? This was one of two questions that the Court of Justice had to answer on 19 October 2023, in case C-325/22, TS & HI. The answer was no. The second question was how to value land. The answer to that […]
read more
No Comments
27. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Compensation for Damage Caused by COVID-19 May be Limited to the Undertakings that Are Most Important to the Economy of a Member Stat
State Aid Blogs - Untitled design 28
Introduction On 23 November 2023, Ryanair lost another appeal before the Court of Justice. The Court ruled, in case C-210/21 P, Ryanair v Commission, that the General Court was right to dismiss Ryanair’s request for annulment of a Commission decision that had authorised French aid to compensate airlines for the damage they suffered as a result of the covid-19-related travel […]
read more
No Comments
20. November 2023  |   State Aid Uncovered by Phedon Nicolaides

State Guarantees
State Aid Blogs - Untitled design 14
Introduction Public authorities often grant guarantees to undertakings so that the latter can borrow commercial loans at lower rates of interest. The 2008 Commission Notice on guarantees sets out four cumulative conditions that create a presumption that a state guarantee is free of State aid: 1. The borrower is not in financial difficulty. 2. The guarantee must be linked to […]
read more
No Comments
14. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Start of Works
State Aid Blogs - Untitled design 27
Introduction Perhaps the most important criterion for the compatibility of State aid with the internal market is the incentive effect. This means that State aid is capable of changing the behaviour of the recipient undertaking. State aid is normally considered not to have an incentive effect when the recipient undertaking is already committed to launch a project or has already […]
read more
No Comments
7. November 2023  |   State Aid Uncovered by Phedon Nicolaides

Whether a Tax Measure Grants New Aid Must also be Assessed in the Context of the Relevant National Case Law
State Aid Blogs - Untitled design 11
Introduction The application of the concept of selectivity to tax measures requires a comparison of undertakings or activities that are in a similar factual or legal situation. A tax measure that differentiates between similar undertakings or activities is selective in the meaning of Article 107(1) TFEU, unless the differentiation can be justified on objective reasons. It follows that the proper […]
read more
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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)
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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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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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27. January 2015  |   Guest State Aid Blog by Erika Szyszczak

Black Cabs in London Retain ‘Exclusive’ Rights to Drive in Bus Lanes
black cab
A detailed note on Case C-518/13 The Queen, on the application of Eventech Ltd v The Parking Adjudicator (judgment of 14th January 2015) An enduring feature of EU law is that it may be used in an opportunist manner in some of the lowest tribunals in the EU to create challenges to national rules and policies. This was how the Eventech case arose. […]
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22. January 2015  |   Guest State Aid Blog by Dimitrios Kyriazis

Luxembourg, Amazon, and the State aid connection
amazon package
The Commission’s opening decision: What should we make of Amazon’s ‘advance pricing agreement’ (APA) and its alleged (non-) compliance with the ‘arm’s length principle’ (ALP)? In early October 2014, the European Commission notified Luxembourg of its decision to open a state aid investigation in relation to the tax treatment of the Amazon group by the Luxembourgish tax authorities. This opening […]
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16. January 2015  |   Guest State Aid Blog by Emma Linklater

In Brief: Case C-518/13 Eventech and Case T-1/12 France v Commission
Lady Justice
A quick look at the two new rulings this week. This post gives a preliminary overview of the two new judgments this week (more in depth posts with analysis will be online soon!): On Wednesday 14th January the CJEU passed its ruling in the hotly awaited Eventech case (Case C-518/13), while a day later the General Court gave its word on […]
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9. January 2015  |   Guest State Aid Blog by Emma Linklater

In Brief: Case T-58/13, Club Hotel Loutraki AE and Others v Commission (judgment of 08.01.2015)
hotel pool
On Thursday the 8th January the GC dismissed all four pleas in the action for annulment of the Commission Decision finding that the exclusive rights granted to operate 35 000 Video Lottery Terminals and 13 games of chance were not State aid.   The case is can be accessed here (English and French versions currently available) and the press release here.Background to the […]
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5. January 2015  |   Guest State Aid Blog by Emma Linklater

State aid in 2015 – Court’s diary and events
gavel
Wishing all our readers and contributors a very happy 2015, this post takes look at the Court’s diary for January and some events in coming months. This is a quick post firstly to thank everybody who has been part of the StateAidHub for their support so far and to wish all our readers an excellent year ahead. If you are interested […]
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23. December 2014  |   Guest State Aid Blog by María Ortiz Vilela

Two Europes and a single SAM
sheeps
Keeping the flock together: A response to discussions on the GBER and SAM at ESTALI Vienna.   Maria Ortiz is a technician for the Valencian Institute of Business Competitiveness (IVACE). The views expressed in this post are purely those of the author and may not in any circumstances be regarded as stating an official position of IVACE. Two weeks ago, the European […]
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5. December 2014  |   Guest State Aid Blog by Emma Linklater

In Brief: T‑57/11 Castelnou Energía v Commission (judgment of 03.12.2014)
burning coal
On Wednesday 3rd December the GC found Spanish aid granted to coal power plants to secure supply to be compatible State aid (judgment not yet available in English). After a busy day at the EStALI Autumn Workshop yesterday (we’ll give you all the hubbub from that as well as the conference later today), the following is a preliminary post on […]
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28. November 2014  |   Guest State Aid Blog by Dimitrios Kyriazis

Driving in the wrong direction? The opening decision in Fiat
fiat
What are we to make of the Commission’s decision to open an in-depth investigation into the tax treatment of Fiat Finance and Trade (FFT) by Luxembourg? In late September 2014, the Commission published its decision to open an in-depth State aid investigation in relation to the tax treatment of Fiat Finance and Trade (FFT) by Luxembourg.This investigation is part of the recent […]
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28. November 2014  |   Guest State Aid Blog by Emma Linklater

Case T-512/11 Ryanair : Commission’s ATT Ireland Decision Partly Annulled (ATT Act I)
On Tuesday (25.11.2014) the General Court delighted the StateAidHub team by dishing out a shiny new ruling just in time for our launch date. Here’s a quick first look at the ruling. This post takes a preliminary look at Case T-512/11 Ryanair Ltd v Commission.This is only one of the appeals being brought against the Commission’s dabblings with the Irish Air […]
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28. November 2014  |   Guest State Aid Blog by Erika Szyszczak

State Aid for Nuclear Power: No Thanks! Maybe? Yes Please!
State Aid Blogs - workers in nuclear plant
The Commission’s decision on the Hinkley Point C nuclear power station of 8th October 2014 and what this might mean for the approach to nuclear energy… In 2014, the European Commission adopted new Guidelines on State aid for energy and the environment. These were followed by the adoption of a new General Block Exemption Regulation that also included measures relating to energy […]
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