Subject and Keywords:
The effect on trade between Member States is considered as one of the elements of the notion of State Aid within the meaning of art.107 (1) TFEU. In the course of the development of the case-law of the CJEU, the interpretation of this condition has evolved. The EU courts gradually devote more attention to its analysis, clarifying its meaning and even (slightly) narrowing its scope. Assess-ment of the condition on the effect on intra-EU trade, as applied by the CJEU, focuses on the supply side of the market — the competitive environment of the beneficiary of aid. The Commission’s decision-making practice develops in a different direction. In numerous cases the Commission held that a measure does not constitute State Aid due to lack of effect on intra-European trade. The Commission has based this approach on the argument of the local scope of the activity of a beneficiary. This approach, based on the assessment of the demand side of the market, though not directly contradictory to the case-law of the CJEU, finds no support in it.