Starbucks Ruling (Joint Cases T-760/15 e T-636/16)

the Application of the Arm’s Length Principle as a Criterion for Assessing Economic Advantage under European Union State Aid Law

Abstract

This paper addresses the issue of the applicability of the arm’s length principle – as understood by the Commission in the Starbucks case –, as a criterion for assessing the existence of economic advantage of a measure that can constitute State Aid within European Union (EU). It takes into account the fact that the aforementioned principle, as applied by the Commission, is not established in the European legal framework and does not have material substance. Finally, some potential negative consequences deriving from the application of this notion where Member States have national legislation on the matter were briefly presented.