Single Undertakings and De Minimis Aid:

For the purpose of administrative simplicity and clarity, Article 2(2) of de minimis Regulation 2023/2831 lays down four exhaustive criteria for determining whether two or more enterprises form a “single undertaking.” The concept of single undertaking is inspired by the concept of “linked enterprise” in the definition of small or medium-sized enterprises (SMEs). However, the criteria in the de minimis Regulation make no mention of links via natural persons. The purpose of this article is to examine possible links between enterprises via natural persons. It argues, first, that the criteria in Article 2(2) can apply to natural persons only if they can be classed as undertakings themselves. More importantly, the article also identifies a possible conflict between the requirement for uniform application of the de minimis Regulation and the need for more thorough investigation by Member States of linked enterprises via natural persons. The case law stipulates that Member States have limited discretion when applying regulations, as they must implement them uniformly across the EU. At the same time, informal links via natural persons cannot be detected without an in-depth examination of all the relevant factors that make up the economic reality of each aid applicant. The future reliance of Member States on central registers of de minimis aid may make it more difficult to identify enterprises that are members of single undertakings as a result of links between natural persons.