No Cutting Corners In State Aid Assessment

The Court of Justice confirms the European Commission's mandatory obligation in determining the existence of aid prior to assessing compatibility with the Internal Market

On 14 June 2024, in 'European Commission vs Kingdom of the Netherlands' the European Court of Justice (''ECJ'') had, for the first time ever, to decide a dispute as to whether the European Commission ("Commission") must assess and verify the existence of state aid, prior to deciding on the measure's compatibility with the Internal Market. In its ruling, the ECJ confirmed that the Commission cannot make any determination on the compatibility of the aid in question, prior to establishing whether the aid actually exists.