State aid refers to forms of assistance (including funding)
given by a public body to any undertaking or business which is providing goods
and services in a particular commercial market and where such assistance has
the potential to distort competition between commercial suppliers and affect trade between member states of
the European Union
The European Commission monitors and controls State aid in
the EU. Member States, like the UK Government, are obliged to notify and seek
approval from the Commission before granting State aid. This gives the
Commission the opportunity to approve or refuse to approve the proposed
measure. In 2012, The Government has secured approval from the Commission. This scheme for Broadband Infrastructure investment. This is being managed
through Broadband Delivery UK (BDUK) and the National Competence Centre. Public
bodies like the County Council have to notify the National Competence Centre of
their intention to invest public funds (State aid) to extend broadband networks
and secure clearance to do so – this means we have to demonstrate that certain
processes and consultations have been undertaken on how and where this aid will
be invested and that the UK Broadband Technology Guidelines will be met. This
ensures that public funds are only invested in broadband infrastructure in
areas of market failure where there are no credible commercial plans for the
foreseeable future. It also aims to ensure that public funds do not
unreasonably benefit one telecoms provider over another in a competitive
market.