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Part II The Notion of State Aid, 5 Distortion of Competition and Effect on Trade between EU Member States

Viktor Kreuschitz, Hanns Peter Nehl

From: State Aid Law of the European Union

Edited By: Herwig C. H. Hofmann, Claire Micheau

From: Oxford Competition Law (http://oxcat.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 25 September 2020

Economic or commercial activity — Application of EU competition rules — State aid

This chapter discusses the distortion of competition and the effect on inter-Member State trade conditions. Article 107(1) TFEU provides that State aid is prohibited if two complementary conditions are fulfilled, namely if the State measure in issue distorts or threatens to distort competition and affects trade between Member States. The common trend within the EU Courts' case law is that no actual assessment of these criteria is required. In order to establish that competition is distorted and trade between Member States affected, it is not necessary to define the market or to carry out a thorough investigation as regards the impact that the contested measure might have upon the economic operators involved. All that matters is whether an advantage is granted to a market operator, at the detriment of another which will, as a matter of fact, encroach upon the good functioning of competition and trade between Member States.

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