IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Jul 2015 | Removal date: 31 Dec 2020
Still in force

Financial grant

According to the UK, "Projects requiring State aid within the context of the notified scheme will procure infrastructure capable of delivering speeds above 30Mbps. The delivery programme tasked with meeting those objectives is led by the UK Department for Culture, Media and Sport (DCMS). [...] The previous National Broadband Scheme for the UK – Broadband Delivery UK ("the 2012 scheme") was approved by the Commission on 20 November 2012; it expired on 30 June 2015. [...] The new scheme will only take effect with the approval of the measure under examination by the Commission and will be valid until 31 December 2020. [...] The overall estimated (maximum) budget of the measure is GBP 500 million (approximately EUR 635 million) for the duration of the scheme. [...] UK Government funding for local broadband projects will be provided as a capital grant to the recipient local body [...]" (para. 3, 18, 19 and 22 letter from the EC to the UK, Brussels 22.06.2016)

Based on the findings of the European Commission, "The markets for electronic communications services (including the wholesale markets and the retail broadband markets) are open to competition between operators and service providers, which generally engage in activities that are subject to trade between Member States. By favouring certain operators and service providers, the notified measure is therefore liable to distort competition and affect trade between Member States." (para. 174 letter from the EC to the UK, Brussels 22.06.2016)

In the GTA database the determination of whether a policy instrument discriminates against foreign commercial interests turns on whether it creates or alters the relative treatment of domestic firms versus foreign commercial interests. On this metric, the state aid proposed here is discriminatory because the state aid is not available to competing firms outside of the implementing jurisdiction.

AFFECTED COUNTRIES

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