The European Commission (Commission) has decided that compensation paid to the bus company Postbus under contract for transport services in the district of Lienz in Austria, does contain elements of State aid. However, following an investigation, the Commission has decided that the compensation is fair compensation for the public service obligations that it performs and is compatible with the ECJ’s guidance in the Altmark Judgment (C-280/00). In that case the ECJ established a four-limb test for deciding when compensation paid for public service is deemed not to constitute State aid. In the meantime, the European Parliament and Council have recently adopted a new Regulation (1370/2007 on public passenger transport that elaborates on the applicable rules (see article above)).