What Is Article 106(2) of the TFEU and Its Role in Public Service Obligations?

Learn how Article 106(2) of the TFEU allows EU Member States to grant exclusive rights for public service while maintaining fair competition.

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Article 106(2) of the TFEU allows Member States to grant exclusive or special rights to certain undertakings, provided such measures are necessary for the performance of a public service obligation. These measures must not distort competition in a way that contradicts the interests of the EU.

FAQs & Answers

  1. What is the purpose of Article 106(2) of the TFEU? Article 106(2) of the TFEU allows EU Member States to grant exclusive or special rights to undertakings necessary to perform public service tasks without distorting competition contrary to EU interests.
  2. Can Member States restrict competition under Article 106(2)? Yes, but only if such restrictions are essential for delivering public service obligations and do not distort competition beyond what is necessary.
  3. Which undertakings can benefit from Article 106(2) TFEU? Undertakings entrusted with public service obligations by Member States can be granted exclusive or special rights under Article 106(2), subject to EU competition safeguards.

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