What is public aid?

It is an economic advantage selectively granted to operators or companies by public authorities, which can take various forms.

Under certain circumstances, public aid can distort competition in markets against the general interest.

The European Commission, through its Directorate-General for Competition (DGCOMP), decides on the compatibility of all aid with the internal market of the European Union, and in this regard, Spain is obliged to notify the aid it grants, unless it falls under an exemption from notification.

What does public aid have to do with competition?

The way public aid is designed and granted influences market competition because it can favor certain companies over others. For example, if a country grants aid to its companies, it will favor them over foreign companies, thereby distorting the market. In addition to competitive distortion, it is likely that other countries will do the same, resulting in a situation where everyone loses.

According to European regulations, member states can offer public aid to companies that provide a public service, as compensation for the losses incurred in providing it under the required conditions. However, they cannot offer overcompensation.

What role does the CNMC play?

The CNMC can advise public administrations on this matter, with the aim of preserving the proper functioning of markets.

We annually issue a report on public aid in Spain, where we analyze the public aid granted in Spain and in the rest of the EU Member States, and we include the main regulatory, administrative, and judicial developments in the field of state aid.

Annual reports on public aidWe issue reports (IPN, PRO, INF) regarding individual public aid schemes and make proposals to public administrations to maintain effective competition in the markets. The analysis may include both legal and economic grounds.Other reports on public aid

We also maintain a database of state aid, both notified to the EU and exempt from notification, that has been granted in Spain.

As a complement to this information, it is necessary to consider, at the European level, the European Commission's state aid register, and at the national level, the National Subsidies Database.Public aid granted in Spain