The EU Commission offers valuable guidance on the application of Regulation 1370/2007 on passenger transport services

* Article published on Lexxion State Aid Blog, 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.

Guidance on the Application of Regulation 1370/2007 on Passenger Transport Services* Main points Public service obligations may only be imposed where the market does not provide adequate services in terms of price and/or quality. The selection of service providers must respect the principles of openness, transparency and non-discrimination, even when public procurement procedures may not apply. Compensation must be based on contracts which contain a precise definition of the public service and parameters on how the compensation is to be calculated. Changes in the conditions of a public service after a contract is awarded are likely to require a new procurement procedure. Costs and revenues must be allocated between eligible and non-eligible activities, according to an established

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Phedon Nicolaides, The EU Commission offers valuable guidance on the application of Regulation 1370/2007 on passenger transport services, 29 mars 2014, e-Competitions State aid and Service of General Economic Interest, Art. N° 65223

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