Einde inhoudsopgave
State aid to banks (IVOR nr. 109) 2018/13.4.3
13.4.3 How is this relevant characteristic elaborated in the decisions?
mr. drs. R.E. van Lambalgen, datum 01-12-2017
- Datum
01-12-2017
- Auteur
mr. drs. R.E. van Lambalgen
- JCDI
JCDI:ADS589437:1
- Vakgebied(en)
Financieel recht / Europees financieel recht
Mededingingsrecht / EU-mededingingsrecht
Voetnoten
Voetnoten
Bank of Ireland, N546/2009, 15 July 2010, para. 254.
AIB/EBS, SA.29786, 7 May 2014, para. 127-130.
IL&P, SA.33442, 9 April 2015, para. 92.
The Service Package was aimed at reducing the cost of entry or the cost of expansion, because the services have to be offered on fair, reasonable and non-discriminatory terms. It is specified that the services are provided at incremental costs.
The Customer Mobility Package was aimed at reducing the costs of customer acquisition. Pursuant to the Customer Mobility Package, competitors may contact the customers of Bank of Ireland, AIB/EBS and IL&P and present them with alternative products for their current accounts or their credit card products. The Commission noted that this customer approach was more targeted and less costly than general advertising measures.
‘Small’ was defined as a market share below 15%. See: Bank of Ireland, N546/2009,15 July 2010, para. 137.
Bank of Ireland, N546/2009, 15 July 2010, para. 257-274; Bank of Ireland, SA.33443,20 December 2011, para. 192.
Bank of Ireland, N546/2009, 15 July 2010, para. 245.
The restructuring plan of Bank of Ireland1, of AIB/EBS2 and of IL&P3 provided for two market-opening measures. These banks would offer a so-called Service Package4 and a Customer Mobility Package5 to new entrants or to small6 banks already active in Ireland.
In addition to the market-opening measures undertaken by the beneficiary banks, the Irish State committed to take several measures to improve competition on the Irish markets.7 For instance, the Irish State committed to enhance customer mobility. These commitments were noted positively by the Commission.
All these measures stimulate new entry on the Irish banking market and hence limit the distortions of competition caused by the State aid. These measures were especially important in the Irish markets, because the Irish banking market was seriously affected by the financial crisis. As a result of the crisis, Irish banks reduced their balance sheets and some even retrenched from the market.8