The Article 106 paragraph 2 of the Treaty on the Functioning of the European Union allows the EU Member States to entrust undertakings with the operation of services of general economic interest. An EU Member State can reserve the performance of a specified group of economic activities for an undertaking in order to allow the undertaking to use profits arising from these activities for coverage of losses from operating the service of general economic interest. The competition rules will apply to the undertaking only if they do not prevent it from operating the service of general economic interest under economically acceptable conditions.
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