Competition and trade law: Relief from rule of general application is not state aid - ECJ decision

United Kingdom

The ECJ has found that a national provision, which relieves only one undertaking of the obligation of complying with generally applicable legislation concerning fixed term employment contracts, does not constitute State aid under the Treaty.

The Court found that such a provision did not amount to State aid since non-application of generally applicable legislation did not involve any direct or indirect transfer of State resources to that undertaking. The judgment was given in Joined Cases C-52,53 and 54/97 Viscido, Scandello, Terragnolo and Ente Poste Italiane (ECJ 7.5.98)