The Swedish Administrative Court of Appeal finds investment by the City Council of Stockholm in expansion of broadband to be illegal State aid that should have been notified to the Commission according to Art 88.3 EC (Thomas Svensson)

Factual Background In 2005, the City Council of Stockholm approved an “action plan” meaning that the four important housing corporations controlled by the City would make considerable investments in broadband infrastructure. Thomas Svensson, being a local resident, appealed the decision claiming that the investment would violate the Local Government Act (“kommunallagen” (1991:900) 2 kap 8 §) as well as EC State aid rules. Thomas Svensson argued i. a. that the economic plan for the investment was filled with risks that would not have been accepted by a private investor. Thomas Svensson also alleged that the decision had been taken on purely political reasons and was thereby was contrary to the “Market Economy Investor Principle”. The City of Stockholm argued that its decision involved no

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Jakob Lundström, Ulf Öberg, Ida Otken Eriksson, The Swedish Administrative Court of Appeal finds investment by the City Council of Stockholm in expansion of broadband to be illegal State aid that should have been notified to the Commission according to Art 88.3 EC (Thomas Svensson), 16 February 2009, e-Competitions Bulletin Direct effect, Art. N° 27183

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