State aid

State aid policy has many things in common with competition policy. Both state aid and restrictions on competition distort competition between companies and can result in considerable losses for society. State aid policy is covered by the competition rules of the EC Treaty and serves the same purpose as competition policy, namely to ensure an efficient use of society's resources. For this reason, the state aid area is under the auspices of the Danish Competition Authority.

The Danish policy on state aid concentrates on state aid being used in the most efficient way, encouraging the desired objectives and avoiding unintended negative consequences such as distortion of competition and/or waste of public money.

It is the responsibility of the Authority to participate in the EU co-operation on matters relating to state aid. Thus, the Authority takes part in negotiations within the EU on new measures in respect of state aid. An important part of the Authority's work in this context is to ensure that Danish interests are safeguarded in the best possible way.

In addition to international work, the Authority plays a national advisory role. The State Aid Office offers advice to the Danish authorities on state aid issues and may provide recommendations; however, it cannot make decisions regarding EU regulation. The European Commission and the European Court of Justice make the final decision as to whether a given scheme constitutes state aid, and whether such an arrangement may be approved. The Authority can – within the provisions of the Danish Competition Act – investigate state aid that falls outside the EU definition of state-aid.