Jurisdiction(s):
United Kingdom

Key definition

State aid definition

What does State aid mean? In practice, state aid refers to public financial support that selectively benefits businesses and risks distorting competition or trade. Under EU law (Articles 107-109 TFEU and case law), it covers advantages granted through state resources that favour certain undertakings or goods and affect trade between Member States. Typical measures include grants, loans, guarantees, tax reliefs, equity injections and land or services below market value. Unless covered by the General Block Exemption Regulation or de minimis rules, aid must be notified to and approved by the European Commission; unlawful aid can be recovered with interest. In Great Britain, the EU state aid...

Court of Justice of the European Union: Spanish hydraulic tax on hydroelectricity in inter-community basins not selective State aid under Article 107(1) TFEU

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Practice notes

CASE HUB—this archived case hub reflects the position at the date of the decision of 7 November 2019; it is no longer maintained. See further,timeline.

Case facts

Outline of Joined Cases C‑105/18 to C‑113/18, UNESA and Others v Administración General del Estado—several Spanish preliminary references sought guidance, among other matters, on whether Article 107(1) TFEU should be construed as meaning that the imposition of a hydraulic levy, like the measure at issue, to the disadvantage of hydroelectricity producers operating in river basins spanning more than one autonomous community, constitutes prohibited State aid.

Latest developments

On 7 November 2019, the Court of Justice handed down its judgment...

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Web page updated on 21/05/2026

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