COMMISSION DECISION
of 23 September 2009
on the aid which Poland is planning to implement for Dell Products (Poland) Sp. z o.o. C 46/08 (ex N 775/07)
(notified under document C(2009) 6868)
(Only the Polish text is authentic)
(Text with EEA relevance)
(2010/54/EC)
1.
PROCEDURE
2.
DETAILED DESCRIPTION OF THE AID
2.1.
The beneficiary
2.2.
The investment project
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
Total |
[…](9) |
[…] |
[…] |
[…] |
[…] |
[…] |
793,603 |
2.3.
The aid
|
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
Total |
Grant for initial investment |
— |
— |
58,91 |
7,94 |
5,96 |
21,83 |
— |
— |
— |
— |
— |
94,64 |
Grant for job creation |
— |
— |
23,27 |
10,26 |
20,55 |
— |
— |
— |
— |
— |
— |
54,08 |
Reduction of SEZ fees |
— |
— |
1,4 |
0,6 |
0,6 |
0,6 |
0,6 |
0,6 |
0,6 |
0,6 |
0,6 |
6,2 |
Relocation of energy supply line |
— |
— |
5 |
— |
— |
— |
— |
— |
— |
— |
— |
5 |
Corporate income tax exemption(16) |
: |
: |
: |
: |
: |
: |
: |
: |
: |
: |
: |
46,945 |
Real estate tax exemption |
— |
— |
1,9 |
0,95 |
0,95 |
0,95 |
0,95 |
0,95 |
0,95 |
0,95 |
0,95 |
9,5 |
Total |
|
|
90,48 |
19,75 |
28,06 |
23,38 |
1,55 |
1,55 |
1,55 |
1,55 |
1,55 |
216,365 |
NB: No corporate income tax is due on any of the aid. |
3.
GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURE
3.1.
Relevant product markets for desktops and notebooks
|
2007 |
2012 |
PCs: |
[0-1] % |
[10-20] % |
Desktops |
0,0 % |
[10-20] % |
Notebooks |
[0-1] % |
[10-20] % |
Servers (whole sector): |
0,0 % |
[10-20] % |
Source: IDC data. |
|
Units |
Value (factory revenue) |
PCs: |
11,02 % |
4,10 % |
Desktops |
3,00 % |
–4,00 % |
Notebooks |
28,60 % |
16,68 % |
Servers (whole sector): |
13,28 % |
7,82 % |
Low-end servers |
14,08 % |
3,47 % |
Source: IDC data. |
3.2.
Production capacity created by the project
3.3.
Use of volume figures for calculating growth rates
3.4.
Relevant product market delineation for servers
|
2006 |
2012 |
||
|
Units |
Value |
Units |
Value |
PCs — EEA: |
[10-20] % |
[10-20] % |
[10-20] % |
[10-20] % |
Desktops — EEA |
[10-20] % |
[10-20] % |
[10-20] % |
[10-20] % |
Notebooks — EEA |
[10-20] % |
[10-20] % |
[10-20] % |
[10-20] % |
PCs — worldwide: |
[10-20] % |
[10-20] % |
[10-20] % |
[10-20] % |
Desktops — worldwide |
[10-20] % |
[10-20] % |
[10-20] % |
[10-20] % |
Notebooks — worldwide |
[10-20] % |
[10-20] % |
[10-20] % |
[10-20] % |
Notes: EEA figures exclude Cyprus, Estonia, Iceland, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta. Source: IDC data, Dell forecasts. |
|
Units |
Value (customer revenue) |
Value (factory revenue) |
|||
|
2006 |
2012 |
2006 |
2012 |
2006 |
2012 |
EEA |
[20-25] % |
: |
: |
: |
: |
: |
Worldwide |
[25-26] % |
[25-28] % |
[20-25] % |
[20-25] % |
[20-25] % |
: |
Source: IDC data, Dell forecasts. |
3.5.
Relevant geographic market for servers
4.
COMMENTS FROM INTERESTED PARTIES
4.1.
Comments from Ms Kathy Sinnott
4.2.
Comments from HP
4.2.1.
Comments regarding the relevant product market for desktops/notebooks
4.2.2.
Comments regarding the relevant product market delineation for servers
4.2.3.
Comments regarding the relevant geographic market for servers
4.3.
Comments from a competitor
4.3.1.
Comment regarding market definition issues
4.3.1.1.
Comments regarding the relevant product market for desktops/notebooks
4.3.1.2.
Comments regarding the production capacity created by the project
4.3.1.3.
Comments regarding the use of volume figures for calculating growth rates
4.3.1.4.
Comments regarding the relevant product market delineation for servers
4.3.1.5.
Comments regarding the relevant geographic market for servers
4.3.2.
Comments regarding the in-depth assessment criteria
5.
COMMENTS FROM POLAND
5.1.
Comments on the opening decision
5.1.1.
General comments
5.1.2.
Comment regarding market definition issues
5.1.2.1.
Comments regarding the relevant product market for desktops/notebooks
5.1.2.2.
Comments regarding the production capacity created by the project
5.1.2.3.
Comments regarding the use of volume figures for calculating growth rates
5.1.2.4.
Comments regarding the relevant product market delineation for servers
5.1.2.5.
Comments regarding the relevant geographic market for servers
5.1.3.
Comments regarding issues for the in-depth assessment
5.2.
Observations on the comments from interested parties
5.2.1.
Observations on the comments from Ms Sinnott
5.2.2.
Observations on the comments from HP
5.2.3.
Observations on the comments from the non-identified party (the competitor)
5.2.3.1.
Claim of confidentiality by the non-identified party
5.2.3.2.
Right of the non-identified party to submit comments
5.2.3.3.
Observations on the comments from the competitor regarding market definition issues
5.2.3.4.
Observations on the comments from the competitor regarding the in-depth assessment
6.
ASSESSMENT OF THE AID MEASURE
6.1.
Classification as State aid
6.2.
Legality of the aid measure
6.3.
Legal basis for the assessment
6.4.
Compatibility with the general provisions of the RAG
6.5.
Compatibility with the provisions of the RAG on large investment projects
6.5.1.
Single investment project
6.6.
Compatibility with the provisions of point 68 of the RAG — verification of the doubts expressed in the opening decision
6.6.1.
Compatibility with the production capacity test for desktops/notebooks
6.6.1.1.
Relevant product markets for desktops and notebooks
6.6.1.2.
Production capacity created by the project
6.6.1.3.
Use of volume figures for calculating growth rates
6.6.1.4.
Conclusion regarding the production capacity increase test for desktops/notebooks
6.6.2.
Compatibility with the market share test for servers
6.6.2.1.
Relevant product market delineation for servers
6.6.2.2.
Relevant geographic market for servers
6.6.2.3.
Conclusion regarding the market share test for servers
6.6.3.
Conclusion regarding the doubts expressed in the opening decision
6.7.
In-depth assessment
6.7.1.
Positive effects of the aid
6.7.1.1.
Objective of the aid
6.7.1.2.
Appropriateness of the aid instrument
6.7.1.3.
Incentive effect
(EUR thousand) |
|
Category/cash flows |
NPV years 1-12 |
[…] of Łódź |
[…] |
[…] of Łódź |
[…] |
[…] of Łódź |
[…] |
[…] of Łódź |
[…] |
Total NPV disadvantage of Łódź Province (excluding State aid) |
–40 360 |
NB: The discount factor used for evaluating all cash flows, including those related to the aid, is the weighted average cost of capital (WACC) of […] % used by Dell in the appraisal of its investment projects in general. Currency conversions use the average exchange rate for September 2006 (date of the MoU between Dell and the Polish Government). Source: LECG calculations based on data provided by Dell. |
6.7.1.4.
Proportionality of the aid
(EUR thousand) |
|
Total NPV disadvantage of Łódź Province (excluding State aid) |
–40 360 |
NPV of the aid granted by the Polish authorities |
39 432 |
Total NPV advantage of Łódź Province (including State aid) |
– 927 |
NB: The discount factor used for evaluating all cash flows, including those related to the aid, is the weighted average cost of capital (WACC) of […] % used by Dell in the appraisal of its investment projects in general. Currency conversions use the average exchange rate for September 2006 (date of the MoU between Dell and the Polish Government). Source: LECG calculations based on data provided by Dell. |