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It is settled case law that the Commission may adopt guidelines and notices setting out how it will exercise its discretion under the State aid rules. These guidelines and notices limit the way in which the Commission exercises its powers. In the present case, the Court of Justice also assumes that role in relation to the Commission's Guarantee Notice. However, unlike other cases in which the Union Courts have ruled on the role of the Guidelines, which concerned the Commission's application of Article 107(3) TFEU, the present case concerns the application of Article 107(1) TFEU. It is also settled case law that the Commission does not have a wide margin of discretion in the application of Article 107(1) TFEU, as the concept of aid is legal in nature. The question is, therefore, whether the Commission can impose restrictions on itself in its assessment under Article 107(1) TFEU. The Court of Justice ignores this question.

european state aid law quarterly

The Status of Guidelines and Notices in Relation to the Application of Article 107(1) TFEU · Case C-211/20 P Valencia CF · Annotation by Cees Dekker Annotation of the Judgment of the Court of Justice (First Chamber) of 10 November 2022 in Case C‑211/20 P European Commission v Valencia Club de Fútbol SAD and Kingdom of Spain