Coronavirus: Implications for state aid and competition

Faced with the implications of the spread of the new Coronavirus (COVID-19) for economic activity, national governments will be called on to intervene to mitigate the negative consequences of a stoppage or slowdown in that activity.

Therefore, we expect that, in the coming days, weeks and months, the number of notifications to the European Commission in the field of state aid will see a significant increase. Indeed, the Commission has already relaxed the rules currently in force by introducing a new temporary framework for state aid measures to support the economy in the current COVID-19 outbreak.

In parallel, the Portuguese Competition Authority (“PCA”) has issued a statement to the effect that it will focus on detecting any anticompetitive practices that exploit the current situation and especially on any practices that harm families and companies. This is in line with what has been done by other competition authorities, in particular the Italian authority.

This briefing answers the main questions about the implications of Covid-19 for state aid and competition.