The State Aid rules are European Competition and Public Law legal provisions which apply to all forms of state funded support provided within the European Union. The rules are designed to prevent public funding undermining the common market by giving one or more businesses a competitive advantage.
State Aid is public funded support which meets each of the four criteria listed in Article 107(1) of the Treaty. The four criteria are:
Where State Aid is present, support will only be lawful where it is provided:
The application of the State Aid law test is informed by European Commission decisions, State Aid case law and officical guidance documents.