Competition regime: State aids

Articles 107 and 108 of the Treaty on the Functioning of the European Union provide the European Commission with wide-ranging powers to investigate illegally paid subsidies and to order member state governments to recover subsidies which distort the market in favour of state-aided enterprises. This Practice note considers the types of state aids subject to EU rules; the requirements on the part of governments, local authorities and other public bodies to notify state aids to the Commission for prior approval; the remedies that are available to companies affected by unlawful subsidies; the "block exemption" regulations; and state aid notification procedures, as well as recent reforms of the state aid rules.

Cyrus Mehta, Nabarro

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