The German Federal Administrative Court rules on the obligation for administrative Courts to comprehensively review the characterization of a measure as state aid, despite preliminary examination by the European Commission

The German Federal Administrative Court (“BVerwG”) ruled that administrative courts are obliged to independently review the question, whether an economic aid meets all the requirements of a notifiable State aid within the meaning of Article 107 TFEU. This obligation is not limited by the fact that the European Commission had previously provisionally examined the facts of the case and already assumed the existence of State aid. Background & facts of the case On 26 October 2016 the German Federal Administrative Court had to clarify the conditions under which an amateur sports club must repay a subsidy for the operation of a commercial climbing hall due to a violation of the prohibition to give out State aid without previous notification. In the case, the defendant, the Federal State

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Authors

  • Gleiss Lutz (Brussels)
  • Gleiss Lutz (Brussels)
  • Jones Day (Brussels)

Quotation

Ulrich Soltész, Harald Weiss, Philipp Werner, The German Federal Administrative Court rules on the obligation for administrative Courts to comprehensively review the characterization of a measure as state aid, despite preliminary examination by the European Commission, 26 October 2016, e-Competitions October 2016, Art. N° 107518

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