Services of General Economic Interest: Proper Definition and Avoidance of Overcompensation Member States need to demonstrate that public service obligations imposed on undertakings are necessary and proportional to the need for public service. A change in the funding of public services does not constitute new aid if it does not alter its objectives, the beneficiaries or the amount of aid by more than 20%. Introduction It is a well-established principle in the case law that Member States may impose public service obligations on undertakings only when the market fails to provide what citizens need and that the obligations must be clear, sufficiently detailed, compulsory and assigned by a public act. A recent judgment confirms that, in addition, Member States must demonstrate that the
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The EU General Court holds that a change in the method of funding public broadcasting does not constitute an alteration of an existing aid measure that would require notification to the Commission (Stichting Woonlinie / Stichting Woonpunt)
* Article published on StateAidHub: http://stateaidhub.eu, 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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