Unlawful Aid and Public Undertakings: Vertical Direct Effect of Article 108(3), third sentence TFEU

Abstract

This paper addresses the position of public undertakings that may appear in a State aid law-related context in their capacity of intermediaries or grantors of aid vis-à-vis Article 108(3), third sentence, TFEU, to check whether the standstill obligation directly applies to public undertakings where they act to grant or disburse State aid. Public undertakings must refrain from granting aid in breach of the standstill obligation, as addressees of the standstill obligation. Where a public undertaking fails to apply Article 108(3) TFEU, it opens itself to claims based on Union law, including claims for damages. Union law is stated as it stood on 20 June 2021.

Keywords

• european union law
• state aid
• vertical direct effect
• standstill obligation
• public undertakings