Judgment — ECLI:EU:C:2003:622
Date: 2003-11-20
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: State aids;Competition
Concepts: Provisional data;Damage to competition and effect on trade;Selective nature of the measure
Procedure: Reference for a preliminary ruling
Origin: France

Summary of the Judgment 
1. State aid — Definition — Payment of costs of disposal of animal carcasses and 
slaughterhouse waste inherent in the economic activities of farmers and slaughter­
houses — Included 
(EC Treaty, Art. 92(1) (now, after amendment, Art. 87(1) EC)) 
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SUMMARY — CASE C-126/01 
2. State aid — Definition — Selective nature of the measure 
(EC Treaty, Art. 92(1) (now, after amendment, Art. 87(1) EC)) 
3. State aid — Effect on trade between Member States — Assessment criteria 
(EC Treaty, Art. 92 (now, after amendment, Art. 87 EC)) 
1. The notion of State aid can encompass 
not only positive benefits such as sub­
sidies, loans or direct investment in the 
capital of enterprises, but also inter­
ventions which, in various forms, such 
as the supply of goods or services on 
preferential terms, mitigate the charges 
which are normally included in the 
budget of an undertaking and which 
therefore, without being subsidies in 
the strict sense of the word, are of the 
same character and have the same 
effect. In that regard Article 92(1) of 
the Treaty (now, after amendment, 
Article 87(1) EC) does not distinguish 
between measures of State intervention 
by reference to their causes or aims but 
defines them in relation to their effects. 
Thus, since the financial cost incurred 
in the disposal of animal carcasses and 
slaughterhouse waste must be con­
sidered to be an inherent cost of the 
economic activities of farmers and 
slaughterhouses, intervention by the 
public authorities intended to relieve 
them of that financial burden appears 
to be an economic advantage liable to 
distort competition within the meaning 
of Article 92(1) of the Treaty. 
(see paras 28-29, 31, 33-34) 
2. Article 92(1) of the Treaty (now, after 
amendment, Article 87(1) EC) requires 
the determination of whether, under a 
particular statutory scheme, a State 
measure is such as to favour certain 
undertakings or the production of 
certain goods over others. If so, the 
measure satisfies the condition of sel­
ectivity which defines State aid as laid 
down by that provision. 
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GEMO 
The fact that the undertakings able to 
claim entitlement under that measure 
belong to different sectors of activity is 
not sufficient to call into question its 
selective nature and therefore, to rule 
out its classification as State aid. 
(see paras 35, 39) 
3. When aid granted by the State 
strengthens the position of an under­
taking vis-à-vis other undertakings 
competing in intra-Community trade, 
the latter must be regarded as affected 
by that aid. 
(see para. 41) 
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