Keywords
Summary

Keywords

State aid — Definition — Logistical and commercial assistance provided by an undertaking entrusted with a service of general economic interest to its subsidiary — Not included — Conditions — Whether additional, variable costs are covered — Appropriate contribution to the fixed costs arising from use of the network set up by that undertaking — Adequate return on the capital investment used for the subsidiary's competitive activity — (EC Treaty, Art. 90(2) (now Art. 86(2) EC) and Art. 92(1) (now, after amendment, Art. 87(1) EC))

Summary

In the absence of any possibility of comparing the situation of an undertaking entrusted with a service of general economic interest within the meaning of Article 90(2) of the Treaty (now Article 86(2) EC), such as an undertaking operating as a legal monopoly in the ordinary mail sector whose network would never have been created by a private undertaking, with that of a private group of undertakings not operating in a reserved sector, the criterion, necessarily hypothetical, of "normal market conditions" , which makes it possible to ascertain whether the provision of logistical and commercial assistance by a public undertaking to its subsidiary, which is governed by private law, is capable of constituting State aid, must be assessed by reference to the objective and verifiable elements which are available.

The costs borne by that undertaking in respect of the provision of such assistance can constitute such objective and verifiable elements. On that basis, there is no question of State aid to the subsidiary if, first, it is established that the price charged properly covers all the additional, variable costs incurred by the provision of that assistance, an appropriate contribution to the fixed costs arising from use of the postal network and an adequate return on the capital investment in so far as it is used for the subsidiary's competitive activity and if, second, there is nothing to suggest that those elements have been underestimated or fixed in an arbitrary fashion.

see paras 34, 36, 38-40