
A party seeking to restrict another's commercial activities must consider whether such terms are normal in similar, factual and contractual circumstances.
We never liked it anyway…
The difficulty with EU State aid law is the width of transactions captured. If the Government was proposing to subsidise our steel industry, so that it could survive and produce cheap exports, it is logical in a free single market (whether you agreed with it or not!) that State aid law would act to prevent this. However, State aid law went much further and State aid rules caused administrative and sometimes real barriers to sensible transactions between local authorities and community groups or making local authority investment activity much more of a headache. As many local authorities have found out when setting up housing development vehicles or carrying out regeneration activity, State aid law required the authority to demonstrate that it was carrying out these transactions as if it were a private investor, or find an exemption to the rules.
Welcome relief then?
So is this a victory for Brexit, reducing the regulatory burden and making authorities’ lives easier? Well, it may be in time, but do consider these three points:
Not all bad…
State aid law compliance is a series of hoops. There are very few situations where State aid law prevents a transaction entirely, but it usually influences the way that you can achieve your goals. The removal of the “hoop jumping” would be welcome, but in the meanwhile it will keep us all fit!
Please contact Richard Brooks.
A party seeking to restrict another's commercial activities must consider whether such terms are normal in similar, factual and contractual circumstances.
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