State aid - Case 6

State aid in paper industry: geographic market definition

We advised Prowell, a producer of corrugated board, and the Federal Republic of Germany in a Commission investigation regarding State aid granted to Prowell for the construction of a paper mill. Our work involved a discussion on the scope of a geographic market definition in markets with high transportation costs in a State aid control context. We demonstrated that a detailed demarcation of geographic markets would be beyond a reasonable scope of analysis in a Phase I investigation. Instead, the default of EEA wide markets should be applied. The Commission concurred with this view and cleared the State aid.