EUR-Lex Access to European Union law

Back to EUR-Lex homepage

This document is an excerpt from the EUR-Lex website

Document 61987CJ0102

Summary of the Judgment

Judgment of the Court of 13 July 1988.
French Republic v Commission of the European Communities.
State aids - Loan granted by the Fonds industriel de modernisation.
Case 102/87.




State aids - Effect on trade between the Member States - Distortion of competition - Aid granted to an undertaking whose activities are confined to the domestic market - No over-capacity

( EEC Treaty, Art . 92 ( 1 ) )


Aid to an undertaking may be such as to affect trade between the Member States and distort competition where that undertaking competes with products coming from other Member States even if it does not itself export its products and there is no over-capacity in the sector at issue .

Where a Member State grants aid to an undertaking, domestic production may for that reason be maintained or increased with the result that undertakings established in other Member States have less chance of exporting their products to the market in that Member State .