Why is State Aid Law Important?

The European Commission believes State Aid law plays a crucial role in the proper functioning of business markets throughout the European Union.

For this reason the European Commission takes violations of State Aid law very seriously. If the European Commission becomes aware of unlawful award of State Aid it may:

The funding organisation may also be at risk of legal action from a competitor who has been disadvantaged by the unlawful award of aid.

A finding of unlawful State Aid brings significant reputational damage to all parties involved.

For these reasons it is important that all awards of public sector funding are structured to comply with State Aid law. State Aid Law is a key concern for all recipients of State funded support as well as managers, legal departments and financial departments of public sector organisations.