State Aid

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A company that receives government support may gain an advantage over its competitors. Therefore, public support to companies is, as a general rule, prohibited where it may affect competition. The prohibition applies not only to grants, but also to other arrangements that provide economic advantages, such as loans and guarantees on favourable terms, cases where public authorities purchase goods at an inflated price or sell assets at an undervalue.

However, there are a number of exceptions. For example, aid justified by environmental considerations, regional development, research, and innovation may be lawful.

Law.no provides guidance on state aid matters for, among others:

  • Companies that need to clarify whether the support they receive or seek from the state is lawful.
  • Companies that believe competitors receive unlawful state aid.
  • Investors in companies receiving public support who wish to understand the associated risks.
  • Public entities that want to assess whether the aid they provide or plan to provide is lawful.
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