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Sensitive sectors

6.—(1) This regulation applies for the purposes of regulation 3(3)(c).

(2) A subsidy concerns a sensitive sector if—

(a)it is given to an enterprise which is engaged in a specified economic activity or an input activity, and

(b)it confers, directly or indirectly, an economic advantage on an enterprise which is engaged in a specified economic activity in relation to that activity.

(3) But a subsidy does not concern a sensitive sector if—

(a)the subsidy is given under a subsidy scheme, and

(b)the criteria or conditions which determine whether an enterprise is eligible to receive a subsidy under that scheme are based on objective factors which do not favour enterprises engaged in specified economic activities or input activities over others.

(4) The objective factors referred to in paragraph (3)(b) may (among other things) include—

(a)size of enterprise;

(b)number of employees;

(c)geographical location.