A PYMNTS Company

LSE Offers No New Concessions In Refinitiv Deal

By  |  June 15, 2020

EU commissioner Margrethe Vestager has agreed to temporarily relax state aid rules that the tech industry argued were holding up several countries’ support for start-ups, reported the Financial Times. 

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Many venture-backed technology companies are classified as being in “financial difficulty” under EU rules because they are run at a loss to accelerate growth or have sold a large portion of the company to investors. 

    As a result, under state aid rules designed to prevent countries from propping up failing national companies, many European start-ups are unable to benefit from the kind of state support that has been made widely available to more traditional businesses in recent months.

    The EU is now moving to extend the “temporary framework” introduced in March to relax state aid rules for struggling companies, so that it includes innovative start-ups and other “micro and small companies”. 

    Ms Vestager, the EU’s executive vice-president who leads competition policy, said such businesses were “crucial for the economic recovery of the Union”. Private investors would also be able to invest alongside government funds under the new proposals, she added.

    Full Content: Financial Times

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.