Price Discounts and Compensation for Public Service Obligations: A Case of Questionable Need for Aid* Main points SGEI can be defined and public service obligations can be imposed only when the market underprovides. The parameters of compensation must be determined in advance. Public service compensation may not exceed the next extra costs of the SGEI or PSO. Member States are free to devise their own method of compensation, but irrespective of the method used, compensation must comply with the basic requirement that it may not exceed the net extra costs.| Introduction  In this article I examine Commission Decision SA.34155 concerning compensation of school bus transport in Rhineland-Palatinate, Germany . The Commission assessment of this measure was partly triggered by a
The EU Commission finds the compensation of school bus and tram transport in the Land Rhineland-Palatinate to be compatible with the internal market (Landesbetrieb Mobilität Rheinland-Pfalz)
* Article published on Lexxion State Aid Blog (click here), 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.
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