THE MARKET ECONOMY INVESTOR PRINCIPLE: LESSONS LEARNED FROM THE CIUDAD DE LA LUZ CASE (2024)

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Volume 12 Issue 1 March 2016
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Adina Claici

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Georges Siotis

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Obhi Chatterjee

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Oliver Stehmann

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Journal of Competition Law & Economics, Volume 12, Issue 1, March 2016, Pages 181–208, https://doi.org/10.1093/joclec/nhv040

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07 March 2016

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    Adina Claici, Georges Siotis, Obhi Chatterjee, Oliver Stehmann, THE MARKET ECONOMY INVESTOR PRINCIPLE: LESSONS LEARNED FROM THE CIUDAD DE LA LUZ CASE, Journal of Competition Law & Economics, Volume 12, Issue 1, March 2016, Pages 181–208, https://doi.org/10.1093/joclec/nhv040

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Abstract

This article analyses the principles applied by the European Commission in the state aid case Ciudad de la Luz. We first review how Market Economy Investor Principle (MEIP) has been applied in concrete state aid cases. We then briefly describe the market for large studios as well as the facts pertaining to the Ciudad de la Luz. Based on the information gathered by the European Commission during the investigation, we show how it is possible to make use of financial theory to apply the MEIP in that particular case. Given the level of in-depth economic and financial assessment performed by the Commission and the subsequent endorsem*nt received by the General Court of the EU, this decision is likely to set an important standard for future investigations into the Market Economy Investor Principle.

© The Author 2016. Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oup.com

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