Advantage, Public Authorities? CAT Rules No Economic Advantage Granted To Borrower, In Only Its Second Subsidy Control Decision

The judgment in Weis v Greater Manchester Combined Authority, which is only the second case brought challenging the award of a subsidy under the UK's Subsidy Control Act 2022 (SCA), has provided some welcome clarity on the question of when a subsidy decision is made and on the application of the commercial market operator (CMO) principle.

Under the SCA, subsidy control decisions of UK public authorities can be challenged by bringing an action before Competition Appeal Tribunal (CAT). The Weis judgment was issued on 24 July 2025 and provides helpful guidance on how the concept of economic advantage (which is a key criteria in determining whether there is in fact a subsidy) should be assessed and how the granting body may determine whether its intervention reflects terms the private sector would impose or obtain.