Between Scylla and Charybdis. Whatever a Member State Does,
It May Expose Itself to Attacks From Both Sides. Lux Express Estonia AS
Case C-614/20, Lux Express Estonia AS,
Judgment of the Court of Justice (First Chamber) of 8 September 2022, EU:C:2022
Between Scylla and Charybdis. Whatever a Member State Does,
It May Expose Itself to Attacks From Both Sides. Lux Express Estonia AS
Case C-614/20, Lux Express Estonia AS,
Judgment of the Court of Justice (First Chamber) of 8 September 2022, EU:C:2022
Author(s): Marek RzotkiewiczSubject(s): Public Administration, Welfare systems, EU-Legislation, Court case
Published by: Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
Keywords: State aid; services of general interest; public transport; Regulation (EC) No. 1370/2007; obligation to pay compensation;
Summary/Abstract: Member States do not need to use state resources when they accomplish their mission. They may employ resources of private undertakings by imposing on them obligations to provide services of general interest (SGI). The latter choice provides Member States with many benefits. But Member States need to be sure that the scheme they created complies with the rules on State aid law. Some Member States make sure that private undertakings carrying out SGI do not obtain the full remuneration for their services. However, the Court’s judgment in Lux Express Estonia has the potential to change this mechanism, especially as the Court stated that Member States must pay compensation for obligations they impose on private undertakings. What is more, Member States need to be certain they pay the right amount of compensation. Not a penny more, not a penny less.
Journal: Yearbook of Antitrust and Regulatory Studies (YARS)
- Issue Year: 16/2023
- Issue No: 27
- Page Range: 165-180
- Page Count: 16
- Language: English