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EU Competition Policy
State Aid
State aid refers to advantages granted by national public authorities to specific companies or sectors that may distort competition and trade within the EU. To ensure a fair and equitable market, Article 107 TFEU generally prohibits State aid unless specific exemptions apply.
What Qualifies as State Aid?
A measure is considered State aid if it meets these criteria:
General measures (e.g., broad tax policies or employment laws) and subsidies to individuals are not classified as State aid.
When is State Aid Allowed?
Some State aid is allowed if it supports policy objectives like regional development, R&D, or environmental protection. These exemptions are outlined in EU State aid legislation.
Verifying State Aid
All new State aid measures must be notified to the European Commission for approval before implementation, except in specific cases, such as:
Unapproved aid measures may be declared incompatible, and the Member State may be required to recover the aid.
Sector Inquiries
Since 2013, the Commission can conduct State aid sector inquiries to investigate potential competition distortions in specific industries or across multiple Member States.
ComplaintsCompanies and consumers can trigger investigations by submitting complaints using the State Aid Complaint Form.
TransparencyThe State Aid Transparency Public Search Tool provides detailed information on individual State aid awards, promoting accountability and market fairness.
State Aid Scoreboard
The State Aid Scoreboard is an annual benchmarking tool that tracks State aid expenditures and control activities across Member States.
Related Links
What Qualifies as State Aid?
A measure is considered State aid if it meets these criteria:
- State intervention: Involves State resources (e.g., grants, tax reliefs, guarantees, preferential goods/services, etc.).
- Selective advantage: Targets specific companies, sectors, or regions.
- Distortion of competition: Has or could have an adverse impact on market competition.
- Effect on trade: Likely to affect trade between EU Member States.
General measures (e.g., broad tax policies or employment laws) and subsidies to individuals are not classified as State aid.
When is State Aid Allowed?
Some State aid is allowed if it supports policy objectives like regional development, R&D, or environmental protection. These exemptions are outlined in EU State aid legislation.
Verifying State Aid
All new State aid measures must be notified to the European Commission for approval before implementation, except in specific cases, such as:
- Aid covered by a Block Exemption.
- De minimis aid (below €200,000 per undertaking over three fiscal years).
- Aid under pre-approved schemes.
- Approve the aid.
- Declare it non-aid under EU rules.
- Launch an in-depth investigation if doubts remain about its compatibility.
Unapproved aid measures may be declared incompatible, and the Member State may be required to recover the aid.
Sector Inquiries
Since 2013, the Commission can conduct State aid sector inquiries to investigate potential competition distortions in specific industries or across multiple Member States.
ComplaintsCompanies and consumers can trigger investigations by submitting complaints using the State Aid Complaint Form.
TransparencyThe State Aid Transparency Public Search Tool provides detailed information on individual State aid awards, promoting accountability and market fairness.
State Aid Scoreboard
The State Aid Scoreboard is an annual benchmarking tool that tracks State aid expenditures and control activities across Member States.
Related Links
