0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

EU court clarifies state aid assistance rules to NPDOs

20 September 2013

When does assistance to a non-profit distributing organisation (NPDO) constitute state aid? A recent decision of the EU General Court has helped to clarify this by looking at the transfer of land for nil consideration from the German government to environmental NPDOs. The NPDOs were able to use the land for, among other things, the sale of wood, providing hunting and fishing licences and tourism. These were secondary to the general task of environmental protection.

Being able to make money from the land that had been transferred from the same activities that profit making entities would be involved was an advantage given to the NPDOs while they were acting as economic undertakings. The other two state aid tests of an intervention by the state and the ability to affect trade between member states were also met.

This is a timely reminder to public bodies that the Commission will consider different activities of an NPDO in different lights rather than making a general assumption that it is not an economic undertaking.

related opinions

Internal Market Bill published today – the start of the controversy?

The Internal Market Bill is published today, but amid much controversy.

View blog

Important opportunity to comment on case law precedent

The UK government is considering extending this power to depart from retained EU case law to additional lower courts and tribunals, namely the Court of Appeal in England and Wales and the High Court of Justice in England and Wales and their equivalents.

View blog

Chancellor announces levy on companies subject to anti-money laundering regulations

The Chancellor’s latest Budget Report outlined that the Government will introduce a £100 million Economic Crime Levy, otherwise known as the AML Levy no earlier than April 2022 to fund action to tackle money laundering and ensure delivery of reforms in the Government’s Economic Crime Plan.

View blog

Retail woes extending beyond the property sector and into financial markets

Some commentators had anticipated that persisting retail sector challenges might disrupt more than the make-up of the high street or commercial property negotiations between landlords and tenants.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up