Competition and Advantage under Internal Market and State Aid Rules: Is There a Gap in the Law?

Abstract:

The paper examines an unusual case involving both a restriction of the freedom to provide services and possible state aid. Organismos Prognostikon Agonon Podosfairou (Organisation of Betting on Football Matches, OPAP), the Greek operator of games of chance, enjoys exclusive rights. The Court of Justice has found that Greece has not exercised sufficient control on OPAP. At the same time, the Commission has assessed the fee that OPAP pays to the Greek State for possible state aid. The Commission has concluded that the fee is high enough to prevent OPAP from earning excessive profits. However, the benchmark that the Commission used assumes that OPAP is a normal operator and not a holder of a legal monopoly with special public policy obligations. The Commission should have taken into account both the monopoly position of OPAP and the impact of those obligations on its profitability.