European Union, state aid control, anti-competitive practices, TFEU, competition policy, internal market, regional development, innovation, services of general economic interest
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Abstract
The European Union's legal framework for controlling anti-competitive state aid, based on European treaties and the Treaty on the Functioning of the European Union (TFEU).
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[...] For a thorough study, it is advisable to examine a priori the legal framework of anti-competitive state aid control in European law and a posteriori to analyze its limitations and challenges (II). I. The legal framework of anti-competitive state aid control in European law The control of anti-competitive state aid is based on a rigorous legal framework defined by European treaties The EC plays a central role in the application of these rules by identifying potentially anti-competitive aid according to specific criteria and procedures A. [...]
[...] The first step in the control of state aid is generally the opening of a formal investigation by the Commission. This can be triggered by a notification from a Member State or by complaints from competing companies or other interested parties. Within the framework of this investigation, the Commission collects information from national authorities and concerned parties, examines the factual and legal elements, and evaluates the potential impact of the aid on competition and the internal market. The Commission then uses specific criteria to identify anti-competitive state aid. [...]
[...] Among the most commonly used exceptions are aid intended to promote the economic development of certain EU regions. This regional aid, also known as regional State aid, aims to reduce economic and social disparities between different regions of the Union. Another important exception concerns State aid granted for projects of common interest, such as those related to research, technological development, environmental protection or culture. These aids, when considered as contributing to the overall development of the EU, may be authorized by the EC, subject to certain strict conditions aimed at limiting distortions of competition. [...]
[...] How does the EU's control of anti-competitive State aid manage to reconcile the need to preserve competition with regional and sectoral development objectives within the EU? State Aid Anti-Competitiveness Under Scrutiny Since the creation of the European Union, the control of state aid anti-competitive has been one of the fundamental pillars of its competition policy. Indeed, in an integrated market where free competition is essential to achieving economic and social objectives, fair treatment of companies is paramount. Thus, the term 'state aid' refers to financial or in-kind benefits granted by a State or through State resources that distort or threaten to distort competition by favouring certain undertakings or certain productions. [...]
[...] Among these are the complexity and opacity of the rules and procedures governing State aid control. The eligibility criteria and conditions for benefiting from exceptions are often perceived as obscure and difficult to interpret. This opacity can lead to difficulties for Member States and businesses in fully understanding their obligations and rights regarding State aid, and can foster legal uncertainty. Furthermore, the administrative burden associated with the notification and approval process for aid can slow down economic initiatives and discourage investments, which can be detrimental to economic growth in the EU. [...]
