The Extent of the Discretion of Member States to Define Services of General Economic Interest (SGEI) A service is classified as an SGEI not only when it is important for citizens but also when the market does not adequately supply it and one or more undertakings are compelled to provide it to specified consumers, in specified areas and on specified terms. Introduction The Treaty on the Functioning of the EU and the case law recognise that Member States can decide what they consider to be a “service of general economic interest”. However, the discretion of the Member States is not unlimited. The Commission is empowered to check whether they have committed a “manifest error”. The extent of the discretion of the Member States and the meaning of manifest error are contested issues. The
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The EU Court of Justice provides guidance on public service obligations assignment (Cellnex Telecom)
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