Government assistance through state aid - what is it?

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International Trade, Regulatory and Government Affairs

State aid is an economic advantage which the public sector gives a company. Public funds affect the conditions of competition and can distort the balance of the market in favor of a sector or a player. The concept of a benefit is broadly defined and can include anything from direct grants and tax benefits to loans and guarantees on favorable terms, or access to infrastructure.

State aid is generally prohibited, but there are many exceptions. Such exceptions are relevant for necessary measures, for example in relation to the environment, research and development or culture and sports. Before state aid can be granted, it must, as a rule, be notified and approved - for Norway's part by the EFTA Surveillance Authority (ESA).

Illegal aid may be required to be repaid in full with late payment interest. Both the public body (grantor) and the relevant company (recipient) are obliged to ensure that state aid rules are complied with. DLA Piper can support both public and private customers.

We advise in any state aid question, including assessing whether a measure can constitute state aid, handling aid and any processes before relevant authorities and the courts.

DLA Piper's global presence and structure, as well as our position as the largest law firm in the Nordic region, mean that we can also offer our clients a unique added value in the form of expertise and possible assistance from local expertise from other relevant jurisdictions in one and the same company. Our attorneys work across disciplines, as well as across borders, in interdisciplinary teams with resources from our various DLA Piper offices to achieve the best and most effective results for our clients.

DLA Piper can assist both public and private clients. Our assistance consists of:

  • General assessment and advice on how to apply for aid and what aid a company is eligible for
  • Assessment on whether a measure can constitute state aid and whether it has to be notified
  • Measures to ensure state aid compliance
  • Guidance on what illegal and un-notified aid is
  • Assistance and advice in relation to notifications to the Commission and ESA
  • Complaints to the Commission and ESA in cases where the is suspicion of a competitor having been granted unlawful aid
  • Assistance in formal investigation procedures with the Commission/ESA or in cases pending before the EU Courts/EFTA.

At national level:

  • Injunctions to stop payments of unlawful aid before national courts
  • Recovery or lawsuits to object against recovery before national courts
  • Follow on damages due to injuries suffered for unlawful aid granted to competitors
  • Assist drafts of comments to Commission's public hearings on the state aid framework

We also offer lectures, courses and seminars to bring general awareness of the State aid rules.

DLA Piper has solid experience from government assistance cases both in public procurement, competition and State aid and can offer a full service review of any State aid related issue in any jurisdiction in Europe. Our Nordic team in Denmark, Finland, Norway and Sweden has a close cooperation and assists companies with operations and provision of goods and services in several EEA countries.