In light of public statements and interpretations that have caused confusion regarding the investigation initiated by the Competition Council concerning a potential unlawful State aid granted to the Municipal Enterprise “Salubrizare și Amenajare Căușeni”, the Competition Council provides the following clarifications:

The Competition Council informs the public that, on 28 July 2025, it initiated a State aid investigation procedure concerning the granting of support measures to the Municipal Enterprise “Salubrizare și Amenajare Căușeni”.

Reason for initiating the investigation

The investigation was launched following an official complaint submitted by the Mayor of Căușeni, Mr. Donțu Alexandru. In this complaint, it was alleged that, during the period 2022–2025, the Căușeni Town Council approved budgetary allocations for the Municipal Enterprise “Salubrizare și Amenajare Căușeni”, including to cover expenses such as employee salaries and meal vouchers.

 

According to the complaint, these support measures were allegedly granted without prior notification to the Competition Council, which may constitute unlawful State aid.

 

What is the Competition Council assessing?

The objective of the investigation is to determine whether the budgetary allocations in question constitute State aid within the meaning of Law No. 139/2012 on State Aid and, if so, whether such measures are compatible with the normal competitive environment or distort competition on the market for sanitation and landscaping services.

 

According to the Law on State Aid, any intention to grant State aid to undertakings – including public or municipal undertakings – must be notified to the Competition Council. The Council assesses the notifications and, if it finds that the aid is compatible with a normal competitive environment, authorises its granting.
State aid can only be granted to the undertaking after the Competition Council has issued its authorisation for the measure.

The obligation to notify lies with the grantor and/or initiator of the State aid, namely the public authority or legal entity that directly or indirectly manages State resources or the resources of administrative-territorial units, or the authority that initiates draft legal acts involving the granting of State aid.

The failure to notify State aid constitutes a breach of the applicable legal framework. It should also be noted that the role of the Competition Council is not to assess the appropriateness of decisions concerning the allocation or management of public funds – responsibilities which fall under the remit of other supervisory institutions, such as the State Financial Control Inspectorate or the Court of Accounts. The main purpose of State aid control is to prevent distortions of competition that may arise from the granting of selective advantages to certain undertakings.

What does the initiation of an investigation entail?
The initiation of an investigation does not automatically imply the imposition of sanctions or the recovery of the State aid granted. It also does not confirm the accuracy of the allegations made in the submitted complaint or the existence of a distortion of competition resulting from the support granted to the Municipal Enterprise “Salubrizare și Amenajare Căușeni”.

As part of the procedure, the Competition Council collects and analyses information from all relevant parties — local authorities, the undertaking concerned, and other competent institutions — in order to determine whether a breach of the State aid rules has occurred and whether the aid granted has affected competition on the market.

Possible consequences in case of a finding of an infringement

If the investigation establishes that the support measures granted to the undertaking constitute State aid and that such aid is not compatible with the normal competitive environment, the grantor  and/or initiator of the aid will be required to amend or repeal the legal act on the basis of which the unlawful or misused aid was granted, and to order the recovery of the aid amount together with the applicable interest. In this case, the beneficiary undertaking will be obliged to repay the aid received.

Additionally, the Competition Council may impose sanctions on the individuals responsible for failing to fulfil the obligation to notify State aid.

Why is the notification of State aid important?
State aid granted to undertakings must be notified to the Competition Council prior to its implementation. Prior notification allows for the verification of compliance with the law, the prevention of the granting of unjustified economic advantages, and the safeguarding of fair competition conditions for all undertakings.

The Competition Council assesses the compatibility of State aid in accordance with Law No. 139/2012 on State Aid, with specific national regulations applicable to certain types of aid, and with the relevant European Union rules.

The results of the investigation will be made public upon completion of the procedure.