State aid and public procurement

State Aids

The EU Court of Justice applies "private vendor" test and upholds Commission’s approach on the incompatibility of a state aid for the privatisation of an Austrian bank (GRAWE)
University of Bristol - Law School
Maybe not such a global appraisal of State aid after all: CJEU backtracks from a truly economic approach (C-124/10)* In an interesting recent paper, Pablo Ibáñez Colomo conducts a very detailed statistical overview of State Aid Litigation before EU Courts (2004–2012) Journal of European (...)

The EU Commission clarifies the relation between Altmark criteria and public procurement rules (SNCM Corse-Méditerranée)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog. Altmark and Public Procurement: Definition and Award of Contracts* Introduction Ever since the Court of Justice ruled on Altmark ten years ago there has been a growing literature on the specific conditions that have to be satisfied so that public (...)

The EU Commission decides that the privatisation process of an airport in Portugal does not constitute state aid (ANA)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog. Privatisation of Aeroportos de Portugal: Conflict between the National Economic Adjustment Programme and State Aid Rules?* Background Portugal notified to the Commission the privatisation of the “Aeroportos de Portugal” [ANA] for reasons of legal (...)

The European Commission issues a state aid decision concerning compensation for the provision of SGEI and orders the immediate and effective recovery of the illicit aid (Marseille -Corsica ferries)
Mircea & Partners (Bucharest)
Introduction The decision in discussion was issued by the European Commission on 2 May 2013 and established that the public service delegation contract for passenger shipping services between Marseille and Corsica did not satisfy the four cumulative conditions set out in Altmark. The (...)

The EU Commission decides that the sale of a state owned airlines company does not amount to state aid (LOT Polish Airlines)
College of Europe (Bruges)
Article published on Lexxion State Aid Blog Sale of State-owned Airlines* Introduction In the previous posting I examined the funding of a regional airport. In this posting I look at a case concerning an airline; more specifically, the sale of three subsidiaries of Polish airline LOT. (...)

The European Commission adopts a communication on the application of the EU State aid rules to compensation granted for the provision of services of general economic interest (SGEI)
European Commission - DG COMP
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European Commission - DG COMP
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European Commission - DG COMP
"The SGEI Communication"* 1. Introduction: The Communication and its role in the new SGEI package This article is the second in a series explaining the rationale behind the new SGEI package, highlighting the most important features and novelties and introducing the new texts. The (...)

The European Commission approves the liquidation plan submitted by the German government for a German commercial bank (WestLB)
European Commission - DG COMP
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European Commission - DG COMP
"WestLB liquidation – the end of the saga"* 1. Introduction On 20 December 2011, the European Commission approved the liquidation plan submitted by the German government for the commercial bank WestLB, majority‑owned by the two savings banks associations in North Rhine‑Westphalia and the (...)

The European Commission adopts a new package of State aid rules for services of general economic interest (SGEI)
European Commission - DG COMP
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European Commission - DG COMP
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European Commission - DG COMP
"The New State Aid Rules for Services of General Economic Interest (SGEI)"* On 20 December 2011, following extensive public consultations, the European Commission adopted a new package of State aid rules for services of general economic interest (SGEI). This article offers an overview of the (...)

The Danish Competition Council finds that a municipality had granted unlawful aid to a national football club but it could not order its repayment because the aid was granted before the relevant State aid provisions in the Danish Competition Act came into force (The Farum Park Case)
Lexxion Publisher
On 22 June 2011 the Danish Competition Council issued a decision dealing with the question whether a Danish municipality (municipality of Furesø) had rented a Center for Sport and Culture to a local football club (FC Nordsjaelland) to a price below market price, leading to a grant of unlawful (...)

The European Commission clears Danish support for the liquidation of a bank, as it provides for an orderly wind‑up of the bank and foresees sufficient safeguards to limit distortion of competition (Eik Bank)
University Luiss Guido Carli - GRIF (Rome)
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European Commission - DG COMP
"State aid: main developments between 1 May and 31  August 2011"* On 6 June 2011 the Commission cleared Danish support for the liquidation of Eik Bank, as it provides for an orderly wind‑up of the bank and foresees sufficient safeguards to limit distortion of competition. The bank, until 2010 (...)

The European Commission publishes a guide to help public authorities understand how Member States may finance services of general interest in compliance with State aid rules
European Commission - DG COMP
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European Commission - DG COMP
State aid: main developments between 1 January and 30 April 2011* On 28 January the Commission published a guide to help public authorities understand how Member States may finance services of general interest in compliance with State aid rules. The ’Guide to the application of the European (...)

The European Commission approves restructuring State aid granted to a Luxembourg bank (Kaupthing Bank Luxembourg)
European Commission - DG COMP
"State aid: main developments between 1 May and 31 August 2009"* On 10 June 2009, Luxembourg informed the Commission that a € 320 million loan had been set up for restructuring Kaupthing Bank Luxembourg SA. Since the primary purpose of the loan was to compensate depositors with the Belgian (...)

The Finnish Supreme Administrative Court sends a case back to the Administrative Court as it had not ruled on the question whether the arrangement constituted State aid (Atlas-Invest)
Dittmar & Indrenius
Factual Background The City Council of Kouvola had resolved to approve the purchase offer of 500,000.00 euros on a parcel of land. The purchase offer amounted to the equivalent of the price announced by the City of Kouvola, but after the approval of the offer, two other offers with higher (...)

The French Administrative court of Bordeaux rejects the State aid law pleas invoked by an unsuccessful bidder in a public tender won by a regional public body, ruling that Art. 87 EC is not directly effective (Merceron)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual Background This case is an appeal lodged against a judgment at first instance in which the claimant saw its request dismissed. It claimed the annulment of a local authority (city) decision confirming a concession contract for the dredging of the port of a commune. The contract was (...)

The Belgian Council of State ruled that there was no need for the procuring entity of a public tender procedure to inquire about the legality of an underlying State aid received by one of the tenderers
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual Background This case concerns a public tender procedure in which VZW Merlijn Marketeer (“VZW”) was awarded the assignment to investigate the existing customer relations of the National Bank of Belgium (“Bank”). VWZ’s offer was the most economical, in that it was the lowest price of all the (...)

The Bulgarian NCA cleared a State aid in the form of compensation for public transportation services under national State aid rules (Elena Avtotransport)
Kinstellar (Sofia)
By this Decision of 2 November 2006 the Bulgarian Commission for Protection of Competition (“the Commission”) cleared a State aid in the form of compensation for public transportation services, provided on the territory of Municipality of Elena, North-Eastern Bulgaria, by the transport operator (...)

An Italian regional administrative Court holds that the decisions of local authorities to confer the management of the service without any invitation to tender do not breach State aid rules if specific conditions are met (Municipality of San Mauro Torinese)
EUJUS Law Firm (Rome)
Factual background The applicant was a municipality located in the Region of Piedmont. Pursuant to Regional Law No. 24/2002, providing that the waste disposal service shall be managed by means of compulsory consortia managed by Municipalities, the applicant joined the Consorzio di Bacino 16 (...)

The EU Court of First Instance delivers a judgment on the notion of State aid addressing the issue of the compensation for services of general economic interest (Altmark)
European Commission - DG COMP
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European Commission - DG MOVE
"Compensation for services of general economic interest: some thoughts on the Altmark ruling"* 1. Introduction With the Altmark judgement, the European Court of Justice has uttered the last word in a longstanding dispute: is compensation for services of general economic interest (SGEI) a (...)

The European Commission decides not to object to an infrastructure development scheme notified by the UK authorities, under which the State, acting through a real estate company, will buy land, develop it for commercial use and then sell or lease it at market price (Welsh Development Agency)
European Commission - DG COMP
"Main developments between 1st October and 31st December 2000"* On 6 December 2000 the Commission decided not to object to an infrastructure development scheme, under which the State, acting through the Welsh Development Agency, will buy land, develop it for commercial use and then sell or (...)

The French Administrative Supreme Court ruled that the mere fact that an undertaking may benefit of a State aid can not interfere with the regularity of a tendering procedure (Bouygues)
Université Aix-Marseille
French Administrative Supreme Court (Conseil d’État), 28 July 1999, Société Bouygues, Case n° 206749, Bulletin Juridique des contrats publics, n° 7, November 1999, p. 620 The French administrative supreme Court had already ruled in the Société Générale case (Conseil d’État, Assemblée), 18 December 1998, (...)

The French Judiciary Supreme Court accepted, in principle, that violation of EC State aid provisions may constitute unfair competition, paving the way to State aid damages proceedings (Ducros/CMF Sud)
Sheppard Mullin (Brussels)
French Commercial Supreme Court (Cour de cassation, chambre commerciale), 15 June 1999, Etablissements J. Richard Ducros v. Société Construzioni Metalliche Finsider Sud, Case n° 97-15684 Facts In 1990, the Etablissements Ducros participated in a tender procedure for a contract concerning the (...)

The French Administrative Supreme Court concluded to absence of State aid in case of an open and non-discriminatory tendering privatisation procedure (CIC/SG-BNP-CCF)
European Court of Justice (Luxembourg)
French Administrative Supreme Court (Conseil d’État, Assemblée), 18 December 1998, Société Générale, Banque Nationale de Paris, Crédit Commercial de France v. Ministre de l’économie, des finances et de l’industrie, Case n° 197175 The liberalization of the bank sector in the European Union initiated (...)

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