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The EU Court of Justice decides that an exclusive right that provides selective advantages through State resources and distorts competition and trade between Member States is a State aid (Poste Italiane)

Exclusive Rights and State Aid* Exclusive rights may constitute State aid if they mandate payments with resources over which the state can exercise control. Compensation for the cost of public service obligations may be granted only if the obligations are clear and define a service that is different from market services. Introduction Article 106(1) TFEU requires Member States not to distort competition when they grant special or exclusive rights to undertakings. If Article 106(1) is found to be infringed it is normally because the undertaking with the exclusive right abuses its dominant market position. It is rare for exclusive rights to be contrary to Article 107(1) TFEU because the granting of those rights does not normally involve transfer of state resources. On 3 March 2021,

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Phedon Nicolaides, The EU Court of Justice decides that an exclusive right that provides selective advantages through State resources and distorts competition and trade between Member States is a State aid (Poste Italiane), 3 March 2021, e-Competitions April 2021 - II, Art. N° 99820

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