State aid is a broad topic concerning economic and legal scientific discipline. On the one hand, it is a factor that affects competition, and on the other hand on the decisions of state authorities governed by European Union law. On the economic side, state aid puts its beneficiaries in a better position than other entrepreneurs in the market who do not receive state aid at the same time. At the same time, grant beneficiaries come to the fore. For this reason, due to the fact that they affect competition and thus distort one of the fundamental principles of the EU, the principle of freedom of the market, EU law addresses this issue through a number of judgments. Under European Union law, State aid is prohibited in principle. And there are exceptions to that ban, and those are automatic and discretionary exceptions. Taking this into account, a distinction is made between permissible and impermissible state aid. Article 107 of the Treaty on the Functioning of the European Union deals with state aid, and exceptions to the ban. The European Commission decides on whether a state measure constitutes aid or not, on the admissibility and inadmissibility of state aid, recoveries and the like. In Croatian law, state aid is regulated by the State Aid Act, which is harmonized with the acquis communautaire