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The German Federal Court of Justice clarifies that the legal situation prior to the grant of unlawful State aid is decisive when considering whether recovery orders are binding

The Federal Court of Justice (Bundesgerichtshof) clarified that the legal situation prior to the grant of the unlawful State aid is decisive for its recovery, in particular the scope and method of the recovery. The Federal Court of Justice also held that an alleged violation of the constitutional principle of equality cannot be claimed in national actions against recovery orders due to the binding effect of Commission decisions on the unlawfulness of State aid. Rather, such (alleged) discrimination must be invoked before the Union courts in actions against the Commission decision ordering recovery of the aid. Background & facts of the case The Applicant operates saltworks in Bad Reichenhall (Germany) on the Austrian border. The Applicant’s legal

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Authors

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

Quotation

Ulrich Soltész, Philipp Werner, Harald Weiß, The German Federal Court of Justice clarifies that the legal situation prior to the grant of unlawful State aid is decisive when considering whether recovery orders are binding, 23 February 2021, e-Competitions Preview, Art. N° 108700

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