The EU Commission finds overcompensation in the State aid for the incumbent postal operator in Spain (Correos)

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

Using the Correct Methodology to Calculate Public Service Compensation Compensation for the extra costs of a public service obligation may include a reasonable profit that reflects the risk borne by the provider of the public service. Introduction The calculation of the amount of compensation for the extra costs of public service obligations can be difficult and tricky. In the absence of such calculation, aid to providers of services of general economic interest cannot be found to be compatible with the internal market. Since any compensation that exceeds the extra costs of the service – i.e. any overcompensation – is automatically incompatible State aid, it is absolutely indispensable to use methodologies that identify and prevent overcompensation. Commission decision SA.37977 on

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Phedon Nicolaides, The EU Commission finds overcompensation in the State aid for the incumbent postal operator in Spain (Correos), 10 July 2018, e-Competitions Bulletin July 2018, Art. N° 88415

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