A Swedish Court applies the market economy investor principle in a State aid case (Thomas Svensson / City of Stockholm)

Background In November 2005, Thomas Svensson (“Svensson”) appealed a decision by the City Council of Stockholm (the “City”) to the Stockholm County Administrative Court claiming that the decision by the City to give green light to four Stockholm city-controlled companies to invest in broadband infrastructure, was a breach of the EC state aid provisions, Articles 87.1 and 88.3 EC. Svensson also claimed that the decision violated the Swedish Local Government Act (sw: kommunallagen). A judgment in the first instance was rendered by the Stockholm County Administrative Court on 25 May 2007, whereby the Court held that the City's decision did not constitute state aid and consequently, that no breach of Article 88.3 EC had occurred. The court also considered that the decision of the City was

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Fredrik Lindblom, Jakob Lundström, A Swedish Court applies the market economy investor principle in a State aid case (Thomas Svensson / City of Stockholm), 16 February 2009, e-Competitions February 2009, Art. N° 25122

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