8. Competition, The State, and Public Undertakings

Author(s):  
Alison Jones ◽  
Brenda Sufrin

All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing able students with a stand-alone resource. This chapter examines how competition law applies to the actions of the State when it intervenes in the market through undertakings that it controls or owns or which it places in a privileged position. The discussions include the limits of competition law; Article 4 TEU; Article 106; the direct effect of Article 106(1) and (2); Article 106(3); and services of general economic interest and state aid.

Author(s):  
Alison Jones ◽  
Brenda Sufrin ◽  
Niamh Dunne

This chapter examines how competition law applies to the actions of the State when it intervenes in the market through undertakings which it controls or owns or which it places in a privileged position. The discussion includes the principle of Union loyalty in Article 4(3) TEU; Article 106(1); Article 106(2); and the Commission’s supervisory and policing powers in Article 106(3). Article 106(1) is a prohibition addressed to Member States against enacting or maintaining in force any measure in relation to public undertakings or undertakings to which they have granted special or exclusive rights which are contrary to the Treaty rules. The chapter discusses what is meant by ‘public undertakings’ and ‘special or exclusive rights’ and examines in the light of the case law what measures are forbidden by Article 106(1), including those involving the cumulation of rights, the extension of a dominant position from one market to another, and the creation of situations of inequality of opportunity. Article 106(2) gives a limited derogation from Article 106(2) to undertakings entrusted with the operation of services of general economic interest (SGEIs). The chapter discusses the concept of ‘services of general economic interest’ and examines the cases in which the derogation has been applied or not applied, including the application of Article 106(2) to compensation for the provision of SGEIs which constitutes State aid. The chapter also considers Article 106(3) and the question of the direct effect of Article 106(1) and (2).


2018 ◽  
pp. 93-119
Author(s):  
Jędrzej Bujny ◽  
Mikołaj Maśliński

Social rental housing is one of the possible instruments which are applied to ensure the satisfaction of housing needs. However, public funds which are transferred to entities that operate within this area should be usually classified as State aid. The analysis presented in this paper concerns the following question: is it possible to consider the operation of a social rental housing program as services of general economic interest. This question seems to be a topical issue because of a new legislative initiative aiming at establishing a governmental housing program that was implemented by the Act of 10 September 2015 which amended the Act on certain forms of supporting housing construction. The aforementioned program stipulates the legal frames for refundable and preferential financing that may be granted to specific entities in order to realise investments in social rental housing. The governmental housing program complements earlier local housing policies in force. What is significant is that the Polish legislator decided to qualify support granted as services of general economic interest, as referred to in Commission Decision 2012/21/UE of 20 December 2011 on the Application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest. Applying Commission Decision 2012/21/UE to this situation raises some doubts as to the lack of clarity of a term “social housing”. Due to a certain controversy over the abovementioned issue, the authors have attempted to examine whether the application of preferential provisions of Commission Decision 2012/21/UE to the social housing program is in accordance with the relevant provisions of EU competition rules.


Author(s):  
Kreuschitz Viktor ◽  
Nehl Hanns Peter

This chapter focuses on transport aid. Transport has, in many regards, always had a special place in EU law. In this diverse sector, the Union's powers are constrained and wide-ranging at the same time. On the one hand, the freedom to provide services only applies to transport if the Union legislators have adopted secondary legislation on market opening. On the other hand, the Court has emphasized on several occasions that the Treaty chapter on transport, Title VI, confers wide-ranging competences on the Union, enabling it to develop a common transport policy. Within this, the Union's powers with regards to State aid have steadily been growing in significance. The transport sector is not only ‘special’ when it comes to its place within EU law and State aid law in general, but also with regards to its place in services of general economic interest.


Sign in / Sign up

Export Citation Format

Share Document