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Cover European Union Law

18. EU law on State aid and public procurement  

Oke Odudu and Albert Sanchez-Graells

This chapter addresses the question of how EU law constrains State activity in respect of its spending decisions, through the control of State aid and through the obligations on the State to go through the process of public procurement when making significant spending decisions. The financial crisis and the pandemic have brought into sharp focus the importance of the rules and the scope for any exemptions. The chapter also explains how these rules have applied in the context of the provision of public services, in particular healthcare, a key social policy, as well as on the (financial) support to environmental sustainability.

Chapter

Cover European Union Law

14. Competition law and policy  

This chapter examines the law and policy on competition in the European Union. It discusses the economic theories underpinning competition protection and the way economic theory is applied in legal and policy decisions. The chapter analyses the scope and effect of Articles 101 and 102 TFEU and the relationship between the two provisions. Concerted practice, dominant position and abuse are defined, and the exceptions to the rules in Article 101 are outlined. This is followed by discussions of the application and enforcement of EU competition law and merger control. State aid and services in the general economic interest are also considered. The role of the consumer and consumer protection are considered throughout.

Chapter

Cover Jones & Sufrin's EU Competition Law

8. Competition and the State: Article 106 TFEU  

Alison Jones, Brenda Sufrin, and Niamh Dunne

This chapter examines how competition law applies to the actions of the State when it intervenes in the market through undertakings which it controls or owns or which it places in a privileged position. The discussion includes the principle of Union loyalty in Article 4(3) TEU; Article 106(1); Article 106(2); and the Commission’s supervisory and policing powers in Article 106(3). Article 106(1) is a prohibition addressed to Member States against enacting or maintaining in force any measure in relation to public undertakings or undertakings to which they have granted special or exclusive rights which are contrary to the Treaty rules. The chapter discusses what is meant by ‘public undertakings’ and ‘special or exclusive rights’ and examines in the light of the case law what measures are forbidden by Article 106(1), including those involving the cumulation of rights, the extension of a dominant position from one market to another, and the creation of situations of inequality of opportunity. Article 106(2) gives a limited derogation from Article 106(2) to undertakings entrusted with the operation of services of general economic interest (SGEIs). The chapter discusses the concept of ‘services of general economic interest’ and examines the cases in which the derogation has been applied or not applied, including the application of Article 106(2) to compensation for the provision of SGEIs which constitutes State aid. The chapter also considers Article 106(3) and the question of the direct effect of Article 106(1) and (2).

Chapter

Cover Competition Law

6. The obligations of Member States under the EU competition rules  

This chapter examines the obligations of Member States in relation to EU competition law. Specifically, it considers the obligations that Article 4(3) TEU and Articles 37 and 106 TFEU place upon Member States. Article 4(3) requires all Member States to take all appropriate measures to ensure fulfilment of the obligations arising out of the Treaties, and to avoid any measure which could jeopardise the attainment of the EU’s objectives. Article 106 particularly obligates Member States to refrain from enacting or maintaining measures contrary to the rules provided in Article 18 and Articles 101 to 109 of the TFEU. Article 37 is concerned with the procurement of goods.

Chapter

Cover Competition Law

6. The obligations of Member States under the EU competition rules  

This chapter examines the obligations of Member States in relation to EU competition law. Specifically, it considers the obligations that Article 4(3) TEU and Articles 37 and 106 TFEU place upon Member States. Article 4(3) requires all Member States to take all appropriate measures to ensure fulfilment of the obligations arising out of the Treaties, and to avoid any measure which could jeopardise the attainment of the EUs objectives. Article 106 particularly obligates Member States to refrain from enacting or maintaining measures, contrary to the rules provided in Article 18 and Articles 101 to 109 of the TFEU. Article 37 is concerned with state monopolies of a commercial character.