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State Aid Issues Highlight the Need for Care in EU Acquisitions by Dennis Oswell
Esfandiar Vahida
Weil, Gotshal & Manges LLP
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June 14, 2006
Previously published on June 2005
State aid is a component of EU antitrust (or "competition") law that has no direct equivalent in US law. Any advantage granted to a company by a Member State that threatens to distort competition in the EU, and which is capable of affecting trade between EU Member States, is unlawful, unless it falls within one of the few narrow categories of exemption. In 2004, ten new Member States joined the EU, with accompanying State aid rules, two State aid cases were decided and a new procedure developed, all of which affect how State aid is treated in acquisitions. These developments highlight the reasons acquirers of EU companies must be especially careful to determine whether there has been State aid.
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The views expressed in this article are solely the views of the author and not Martindale-Hubbell. This article is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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