Newsletter-21

158 NEWSLETTER 2016 are illegal, as it allows group companies to allocate their profits by intra-group transactions in countries where the tax burden is lower 6 . The aid granted by the State, or through state resources, should also grant an advantage to the beneficiary of the aid as compared to its competitors. Additionally, the advantage should be granted on a selective basis; therefore, general economic and financial measures concerning all undertakings without any selective bases are not con- sidered as state aid in accordance with Art. 3/4 of Law No. 6015. With regard to the competition and trade between Member States, the Commission consistently confirmed that trade between Member States is affected if the relevant sector is open to competition, and two or more Member States are operating in the relevant sector, and the position of the beneficiary is strengthen, when compared with other firms 7 . Additionally, the Commission is concerned with the effects of the measure; therefore, the objective pursued by the relevant measure does not prevent the measure to be considered as state aid 8 . Art. 35 of Decision No. 1/95 provides that any practices contrary to state aid rules shall be assessed on the basis of criteria arising from the application of the European Union’s legislation. Therefore, the practice of the Commission should be taken into account in the ap- plication of Turkish state aid rules. Exemptions and Illegal Aid Both Art. 107 of the TFEU, and Art. 3 of Law No. 6015 provides that the aid be compatible, or may be considered compatible, with state aid legislation. Accordingly, aid having a social character, granted to individual consumers, provided that such aid is granted without dis- crimination related to the origin of the products concerned, and aid to make good damages caused by natural disasters or exceptional occur- rences, are compatible for the purposes of Law No. 6015. 6 See: http://europa.eu/rapid/press-release_IP-15-5880_en.htm. 7 Case 730/79 Philip Morris v Commission [1980] ECR 2671. 8 Case C-75/97 Belgium v Commission [1999] ECR I-3672, par. 25; Case 173/73 Italy v. Commission [1974], par. 13.