Competition Law in Tourism

710 COMPETITION LAW IN TOURISM TAP, respectively, they should do the same for Ryanair. As shown below, this argument is not upheld by European legislation, which allows selectivity in the airline to be given aid. Ryanair’s predisposition to challenge State aid to flag carriers in the European Court of Justice is not exactly new. For instance, in the mid-1990s, Ryanair was already protesting against the Commission’s decision to authorise State aid from Ireland to the Aer Lingus group. However, more recently, the combative stance of the Irish low-cost airline has aroused a great deal of media interest, generating the impression in the public mind that its positions have been supported by the European Court of Justice, which is not true, particularly in TAP’s case. 2. THE GENERAL PRINCIPLE THAT STATE AID IS INCOMPATIBLE WITH THE INTERNAL MARKET The essential provision on this matter is found in Title VII (Common Rules on Competition, Taxation and Approximation of Laws), more precisely in article 107 TFEU, which is presented as a general principle of the incompatibility of State aid with the internal market. According to article 107(1), unless the Treaties provide otherwise, “any aid granted by a Member State or through State resources in any form whatsoever” is not compatible with the internal market, whenever it “distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods”. Article 107(2) lists several situations where there is compatibility with the internal market, which includes COVID-19: “(b) aid to make good the damage caused by natural disasters or exceptional occurrences”. 3. MEMBER STATES MUST NOTIFY THE COMMISSION BEFORE GRANTING AID Under article 108(3) TFEU, when a Member State intends to grant State aid it considers compatible with the internal market, it must timely inform the European competition authority, in other words, the Commission. This notification obligation imposed on the Member States is intended to allow the Commission to assess the State aid project. If the Commission considers it

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