The EU Court of Justice confirms that a company is not necessarily insulated from State aid if it enjoys exclusive rights and operates in a sector covered by a legal monopoly (Arriva Italia)

Exclusive Rights and Legal Monopolies* Introduction The fact that a company enjoys exclusive rights and operates in a sector covered by a legal monopoly does not necessarily insulate it from State aid rules. This has been confirmed by the Court of Justice in its judgment of 19 December 2019, in case C-385/18, Arriva Italia and others. [1]. An Italian court asked the Court of Justice for guidance in a case involving Arriva Italia and other companies, on the one hand, and the Ministry of Infrastructure and Transport, on the other. The case concerned the transfer of 100% of the holding of the Ministry in Ferrovie del Sud Est e Servizi Automobilistici Srl a socio unico [hereinafter FSE] to state-owned Ferrovie dello Stato Italiane [hereinafter FSI]. Both the FSE and the FSI are railway