State aids in european union competition law to deal with the consequences of the spread of Covid-19

The spread of Covid-19 and the measures taken by governments to prevent the spread of the disease have greatly reduced trade in many areas of the economy, including tourism, automotive, aviation, sports, and more. The short-term consequence of this event will be a decrease in corporate income and the long-term consequence will be that many medium or large companies are on the verge of bankruptcy. To prevent such a situation, and especially from stagnating economies, countries can help firms emerge from the crisis by providing direct or indirect financial assistance.In order for such aids not to have an anti-competitive effect on the market itself, competition law systems establish special rules for the forecasting and implementation of State aids. In this article, we will examine the existing mechanisms in EU competition law and the role of European and national institutions in the forecasting, implementation and control of State aids. The system under study has been able to reconcile the principle of free competition in the common market with the need for government intervention in helping firms at risk, due to the anticipation of the principle of prohibition of government aid and various strategies for providing government aid in exceptional circumstances. Such a mechanism has not yet been properly enacted in Iran, and State aids without prior supervision could lead to inequality between public and private enterprises and the shrinking of the private sector.