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Keyword: Exclusive Rights

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The Application of State Aid Rules to Markets Subject to Legal Monopolies · Case C-385/18 P Arriva Italia · Annotation by Federica Maldari journal article

Annotation on the Judgment of the Court of Justice of the European Union (Second Chamber) of 19 December 2019 in Case C-385/18 P Arriva Italia Srl and Others v Ministero delle Infrastrutture e dei Trasporti

Federica Maldari

European State Aid Law Quarterly, Volume 19 (2020), Issue 1, Page 66 - 73

The Case at issue provides a guidance on the notions of advantage and distortion of competition for the purpose of classifying a State intervention as State aid, and a clarification on the application of the State aid rules to markets which are subject to legal monopolies. The Case arises from the Italian government’s intervention for the benefit of a State-owned operator in a serious financial situation, active in the railway and transport services sectors. In particular, the intervention concerns (i) the statutory allocation of € 70 million for the benefit of the operator and (ii) the transfer of the entire shareholding of the government in that operator, for no consideration, to another State-owned operator of the national railway infrastructure to restore the financial viability of the transferred company. Other public providers having an interest in the transferred company challenged the legality of those measures, arguing that they constitute State aid. Therefore, the Italian Council of State asked the Court of Justice for a preliminary ruling concerning the interpretation of Articles 107 and 108(3) TFEU in respect to the afore-mentioned measures. Keywords: Legal Monopolies; Exclusive Rights; Transport Sector; State-Owned Operator.

Exclusive Rights and State Aid journal article

Grith Skovgaard Ølykke

European State Aid Law Quarterly, Volume 16 (2017), Issue 2, Page 164 - 180

Exclusive rights are granted in order to regulate markets as one of several possible tools of public intervention. The article considers the role of State aid law in the regulation of exclusive rights. Whereas the right of Member States to organise markets as monopolies and the choice of provider are regulated by free movement rules and Article 106 TFEU, State aid law regulates the terms of the right to ensure that the beneficiary is not granted an economic advantage. Exclusive rights may be granted on various terms: for a payment, in combination with compensation or as compensation. The two former kinds of terms are regulated under State aid law which requires market terms. The granting of exclusive rights as compensation is analysed on the basis of the Eventech judgment, and it is found that when no financial transaction is included in the grant, it resembles a decision to organise a market through exclusive rights which could explain the CJEU’s somewhat ambiguous approach in Eventech. Keywords: Exclusive Rights; Services Directive; Organisation of Markets; Competitive Procedure; Compensation; Fee.

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