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The Case at issue provides a guidance on the notions of advantage and distortion of competition for the purpose of classifying a State intervention as State aid, and a clarification on the application of the State aid rules to markets which are subject to legal monopolies. The Case arises from the Italian government’s intervention for the benefit of a State-owned operator in a serious financial situation, active in the railway and transport services sectors. In particular, the intervention concerns (i) the statutory allocation of € 70 million for the benefit of the operator and (ii) the transfer of the entire shareholding of the government in that operator, for no consideration, to another State-owned operator of the national railway infrastructure to restore the financial viability of the transferred company. Other public providers having an interest in the transferred company challenged the legality of those measures, arguing that they constitute State aid. Therefore, the Italian Council of State asked the Court of Justice for a preliminary ruling concerning the interpretation of Articles 107 and 108(3) TFEU in respect to the afore-mentioned measures.  Keywords: Legal Monopolies; Exclusive Rights; Transport Sector; State-Owned Operator.

european state aid law quarterly

The Application of State Aid Rules to Markets Subject to Legal Monopolies · Case C-385/18 P Arriva Italia · Annotation by Federica Maldari Annotation on the Judgment of the Court of Justice of the European Union (Second Chamber) of 19 December 2019 in Case C-385/18 P Arriva Italia Srl and Others v Ministero delle Infrastrutture e dei Trasporti