State aid & National enforcement

State Aid

The EU Commission consults Member States on a proposal for a partial adjustment of the phase-out schedule of the State aid Temporary Crisis and Transition Framework in view of the upcoming winter heating period
European Commission - DG COMP (Brussels)
Commission consults Member States on a proposal for a partial adjustment of the phase-out schedule of the State aid Temporary Crisis and Transition Framework in view of the upcoming winter heating period* The European Commission has sent to Member States for consultation a draft proposal to (...)

The EU Commission authorises a German state aid scheme on the basis of the Temporary Crisis and Transition Framework to support transition to a net-zero economy
Maastricht University (Maastricht)
Transition to a Net-Zero Economy Introduction Although the TCTF requires notification of aid measures, it seems to be more user-friendly than State aid guidelines. This is because Member States may simply copy its provisions in their local law or administrative instrument and send it to (...)

The EU Court of Justice dismisses an appeal against the judgment of the General Court and confirms the incompatibility with the internal market of aid granted by Austria to an airline (TUIfly)
Maastricht University (Maastricht)
Profitability as a Criterion of the Compatibility of State Aid with the Internal Market* Introduction When the state has a realistic prospect of making profit, its financial transactions with third parties do not constitute State aid. The absence of profit is a strong indicator of the (...)

The EU General Court holds that transactions at market rates can still confer an advantage that constitutes State aid (Ryanair)
Maastricht University (Maastricht)
Transactions at Market Rates Can still Confer an Advantage that Constitutes State aid (PART II)* Introduction When public authorities buy goods and services for themselves, they have to pay a market price, otherwise they confer an abnormal advantage to the sellers. On 14 June 2023, the (...)

The EU General Court clarifies a third party may be designated as an ’interested party’ provided it can evidence that its interests are affected by the grant of aid on which the case revolves (Unsa Énergie)
Maastricht University (Maastricht)
Regulatory Measures Are not State aid & Trade Unions Are not “Interested Party”* Interested party On 7 June 2023, the General Court delivered its judgment in case T-322/22, Unsa Énergie v European Commission. Unsa Énergie, a trade union representing employees of Électricité de France (...)

The EFTA Surveillance Authority adopts new Guidelines on the enforcement of State aid rules by national courts applicable to the EEA EFTA States
EFTA Surveillance Authority (Brussels)
ESA adopts revised guidelines on enforcement of State aid rules by national courts* The EFTA Surveillance Authority (ESA) has today adopted new Guidelines on the enforcement of State aid rules by national courts applicable to the EEA EFTA states. The revised guidelines provide direction (...)

The EU Court of Justice sets aside two judgments of the General Court which dismissed the appeals of two airlines against a Commission decision concerning State aid granted by Italy to Sardinian airports (Volotea / EasyJet)
European Court of Justice (Luxembourg)
The Court of Justice sets aside the two judgments of the General Court which dismissed the actions of Volotea and easyJet against the decision of the Commission concerning State aid granted by Italy to Sardinian airports* That decision is also annulled, to the extent that it concerns Volotea (...)

State aid & Private enforcement: An overview of EU and national case law
Maastricht University (Maastricht)
Article 107(1) of the Treaty on the Functioning of the European Union [TFEU] declares State aid granted by Member States to be incompatible with the internal market. This principle of incompatibility is not absolute. Under certain conditions, State aid may be exempted from the prohibition of (...)

The EU General Court issues a decision which confirms that the date on which State aid is deemed to be granted is not necessarily the date on which the actual benefit materialises (Tirrenia di navigazione)
Maastricht University (Maastricht)
The Date on which State Aid is Deemed to be Granted Is not necessarily the Date on which the Actual Benefit Materialises* State aid is deemed to be granted even if the benefit cannot be quantified in advance and even if state resources are transferred at a future point in time. (...)

The EU Court of Justice orders Greece to pay a lump sum of €5.5B and a penalty payment of €4.37B for failure to recover wrongful State aid granted to a mining company (Larco)
General Court of the European Union (Luxembourg)
Greece is ordered to make a lump sum payment of €5 500 000 and periodic penalty payments of over €4 000 000 for every six months’ delay for failure to recover State aid granted to Larco* The Court first declared that Greece had failed to fulfil its obligations in a judgment delivered in 2017 (...)

The Spanish Supreme Court reconsiders its position on the proportionality criteria in relation to private hire vehicle licenses in light of Articles 49, 102 and 107 of TFEU (Prestige / Limousine)
Judicial Ethics Commission (Madrid)
The Spanish Supreme Court has declared admissible an appeal in cassation against a judgment by the Madrid High Court of Justice concerning the conformity of its case-law on the criterion that limits private hire vehicle licences to one for every 30 taxi licences or fewer, in the light of (...)

The Spanish High Court voids an agreement between the national government and a local authority to expand the terrestrial television network in rural areas on the grounds that it breached EU State aid rules (La Manche)
Judicial Ethics Commission (Madrid)
The Spanish National High Court declares that the agreement between the State and the Autonomous Community of Castile-La Mancha for the access to digital terrestrial television is void on the ground that it infringed the rules of EU law on State aid in the terms decided by the European (...)

The Polish Supreme Administrative Court issues a decision on the applicability of regional investment aid for a tax exemption and the maximum amount of aid that may be granted in an administrative decision
Warsaw School of Economics
Background & facts of the case The case related to the Polish flagship programme of regional investment aid customarily referred to as Special Economic Zones (SEZ), which essentially provides an exemption from corporate income tax (CIT) in an amount proportionate to investment costs (...)

The German Federal Court of Justice declares that the legal situation prior to the grant of unlawful State aid is decisive when considering whether recovery orders are binding
Gleiss Lutz (Brussels)
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Jones Day (Brussels)
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Gleiss Lutz (Brussels)
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 (...)

The Spanish High Court of Justice for Aragon rejects an appeal over a tax exemption for a regional tax on large retailers because the appellant does not satisfy the exemption (Aki Bricolaje Espana)
Judicial Ethics Commission (Madrid)
Aragón High Court of Justice dismisses the appeal against the assessment of the regional tax on large retail establishments in Aragon on the ground that what constituted State aid was the exemption for certain establishments but not in the case of the now appellant undertaking. Background (...)

The Italian Supreme Court annuls a ruling by the Piedmont Regional Tax Court which voided a decision requiring two companies to return illegal State aid (A.O. / A.A.)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 20 November 2020, the Supreme Court delivered Decision No. 26477 in a case concerning penalties imposed by the ITA on A.O. and A.A. for failure to comply with the implementing provisions of a Commission recovery order. Background & facts of the case By Decision 2005/315/EC of 20 (...)

The Italian Supreme Court decides, following a preliminary reference to the EU Court of Justice, that aid which predated EU market liberalisation can constitute new State aid (Fallimento Traghetti del Mediterraneo)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 16 October 2020, the Supreme Court delivered Decision No. 22631 in a case concerning alleged aid granted by the Italian Government to a company operating in the maritime cabotage sector. Background & facts of the case In 1981, Fallimento Traghetti del Mediterraneo S.p.A. (“TDM”) (...)

The Portuguese Supreme Administrative Court rules that notwithstanding a government decree excluding firms operating in agriculture, an agribusiness may reap the benefits of a corporate tax-relief scheme (Tax Benefits)
Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
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Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
Background and facts of the case The appellant undertaking brought a claim before the Supreme Administrative Court (“SAC”) against the sentence rendered by the Leiria Administrative and Tax Court, which dismissed the judicial claim brought against the payment of additional Corporate Income (...)

The Spanish Supreme Court grants an appeal allowing a real estate tax break to the nationalised shipyard company (Navantia)
Judicial Ethics Commission (Madrid)
The Spanish Supreme Court, after the Ferrol Administrative Court had raised the question for a preliminary ruling to the Court of Justice, upheld the cassation filed by Navantia against the judgement delivered by the Galicia High Court of Justice, and recognized the exemption from Real Estate (...)

The EU General Court dismisses the actions for annulment in the "Spanish tax lease saga" (Spain / Lico Leasing / Pequeños y Medianos Astilleros Sociedad de Reconversión)
Van Bael & Bellis (Brussels)
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Hogan Lovells (Brussels)
On 23 September 2020, the General Court delivered another judgment in the “Spanish tax lease saga”, concerning certain aid measures granted through tax provisions applicable to agreements put in place for the financing and acquisition of vessels in Spain. This judgment follows the annulment (...)

The EU General Court finds a Spanish ship finance scheme to be illegal State aid (Spain / Lico Leasing / Pequeños y Medianos Astilleros Sociedad de Reconversión)
Zepos & Yannopoulos (Athens)
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Linklaters (London)
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Zepos & Yannopoulos (Athens)
By its renvoi judgement of 23 September 2020, the General Court upheld the 2013 European Commission decision which found that the Spanish tax lease scheme (“the STL system”) allowing shipping companies to benefit from rebates of up to 30% on the price of vessels built by Spanish shipyards (...)

The EU General Court rules that the Spanish tax system applicable to certain finance lease agreements entered into by shipyards constitutes an aid scheme and that the unlawful State aid granted under that system must be recovered from the beneficiaries (Spain / Lico Leasing / Pequeños y Medianos Astilleros Sociedad de Reconversión)
General Court of the European Union (Luxembourg)
The Spanish tax system applicable to certain finance lease agreements entered into by shipyards constitutes an aid scheme* The unlawful State aid granted under that system must be recovered from the beneficiaries In 2006, the European Commission received a number of complaints concerning the (...)

The Portuguese Supreme Administrative Court considers the distinction between "establishment" and "undertaking" in the context of EU State aid rules (Miranda do Douro)
Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
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Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
Background & facts of the case The municipality of Miranda do Douro brought a claim before the Supreme Administrative Court (“SAC”) against the ruling rendered by the Northern Central Administrative Court, which considered that the conditions for the exemption of property transfer (...)

The Portuguese Southern Central Administrative Court rejects a claim by a food distributor on the grounds that they do not have locus standi to challenge a levy funding an animal carcass collection system under EU State aid rules (“Food Safety Plus” Tax)
Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
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Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
Background & facts of the case The Appellant, a company in the sector of retail distribution of food products that owns and manages several brands and shops, brought a claim before the Southern Central Administrative Court (“SCAC”) against the sentence rendered by the Lisbon (...)

State aid & Private enforcement: An overview of EU and national case law
Sheppard Mullin (Brussels)
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Macfarlanes (Brussels)
I. Introduction State aid private enforcement continues to develop rapidly with landmark cases that are some of the most important in competition law. This special issue will look at this type of competition law private enforcement which, given the recorded cases, is as developed, if not (...)

The EU Court of Justice clarifies the conditions in which a legal person liable to pay a tax can plead its incompatibility with the EU State aid rules before a national court (Vodafone)
Van Bael & Bellis (Brussels)
On 3 March 2020, the Grand Chamber of the Court of Justice (the “ECJ”) delivered another judgment in the field of taxation and State aid (Vodafone Magyarország Mobil Távközlési Zrt., C-75/18). While this judgment does not substantially develop the case law in this field, it contains useful (...)

The Austrian Supreme Administrative Court makes the entry into force of a national law introducing a State aid scheme contingent on approval by the EU Commission (Dilly’s Wellnesshotel)
University of Vienna
Background & Facts of the case As a preliminary to the discussion of the case, it is useful to highlight the historical development of the material scope of the law at issue in the proceedings before the public courts, the Energieabgabenvergütungsgesetz (Law on the rebate of energy (...)

The Polish Regional Administrative Court in Warsaw issues a decision on the statute of limitation in State aid recovery cases in the absence of the Commission’s recovery order
Warsaw School of Economics
Background & facts of the case In the facts of the case a company received in 2008 state aid towards the cost of employment of the handicapped, which was conditional, among others, on timely payment by the beneficiary company of social security contributions. Polish authorities (...)

The Austrian Federal Administrative Court dismisses the claim by a telecoms operator that reforming the rights to use of radio frequencies, but excluding pre-existing rights from this reform, constitutes illegal State aid because there is no demonstrable negative effect on the State flowing from the reform
University of Vienna
Background & Facts of the case In order to enable a more efficient use of the Austrian mobile communications network, the Telekom-Control Commission (“the authority”) ordered, by decision of 28 July 2014, a so-called “refarming” of rights of use for radio frequencies in the 900 and 1800 (...)

The Italian Council of State rules that the EU Commission’s decision to declare a provision of State aid legal cannot have a retroactive effect (Impresa Renato Murgia)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 15 July 2019, the Council of State delivered Decision No. 4962 in which it rejected the appeal brought by the Autonomous Region of Sardinia against a decision of the Regional Administrative Court of Sardinia (“TAR Sardinia”), which had upheld the annulment action brought by Re. Mu. S.r.l. (...)

The Dutch Court of Appeals for Amsterdam rules the total annulment of a public loan guarantee would not breach the legal principles of fairness and reasonableness when trying to restore the competitive landscape (Commerz)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
For the facts of the case, please refer to the case summary of the judgment from the Supreme Court of the Netherlands, 27 May 2016 (Commerz v Rotterdam Port Authority) ECLI:NL:HR:2016:994. Taking into account the preceding judgments of the Supreme Court of the Netherlands and the Court of (...)

The Polish Supreme Administrative Court issues a judgement on the power of a national court to order recovery of unlawful aid also in the absence of the Commission’s prior negative decision
Warsaw School of Economics
Background & facts of the case The case formed part of a vast group of disputes arising from a refusal by Polish authorities to apply to beneficiaries exemptions from real estate tax that had been granted by Poland prior to Polish accession to the EU without any notification of that aid (...)

The EU Court of Justice preliminarily determines that a Lithuanian aid scheme for the provision of public interest services in the electricity sector breaches State aid rules (Achema / Orlen Lietuva / Lifosa / VKEKK)
European Commission - DG ENERGY (Luxembourg)
The judgment of the Court of 15 May 2019 in case C-706/17, delivered upon a request for a preliminary ruling from the Supreme Administrative Court of Lithuania (“Achema”), replicates the analysis which was previously established in Association Vent de Colère!. The judgment in Achema thus (...)

The French State Council concludes that three taxes assigned to an undertaking in the audiovisual and multimedia sector cannot be regarded as an integral part of an aid scheme on the basis that they represent a growing share of revenue which is not considered as having directly influenced the amount of aid granted (National Center for Cinema & Moving Image)
Conseil d’Etat (Paris)
The junction between the financing of cinema and audiovisual media and State aid law is at the origin of a case which, initially supposed to revolve around the notion of "alteration to existing aid", has come, after a contentious detour, to clarify what constitutes a tax measure hypothecated (...)

The Italian Supreme Court orders the recovery of aid given to Sardinian hotels and dismisses arguments that the local government’s reassurances should provide the undertakings with protection due to legitimate expectations (Eurosarda Gestioni Turistiche)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 26 February 2019, the Supreme Court delivered Decision No. 5594 in a case concerning the reimbursement of aid unlawfully received by Eurosarda Gestioni Turistiche S.r.l. from the Sardinian regional government. Background & facts of the case In Decision 2008/854, the Commission (...)

The EU Court of Justice clarifies the concept of "existing aid" in a private enforcement case and holds that unlawful aid cannot be retroactively legalised under a limitation period that has lapsed (Fallimento Traghetti del Mediterraneo)
Willkie Farr & Gallagher (Paris)
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Shearman & Sterling (Brussels)
On January 23, 2019, the European Court of Justice (hereinafter the “Court” or the “ECJ”) handed down a preliminary ruling on the notion of “existing aid”. The Court held, in particular, that the circumstance where a new aid that becomes existing aid by virtue of the 10 years limitation period (...)

The Spanish Supreme Court, following a preliminary ruling by the EU Court of Justice, decides that a tax on large commercial establishments does not breach State aid rules because it is not sufficiently selective (IKEA)
Judicial Ethics Commission (Madrid)
The Supreme Court, after having raised the question for a preliminary ruling to the ECJ, dismisses the appeal against the Regulation of the Tax on Large Commercial Establishments of Asturias Background & facts of the case The tax on large commercial establishments in Asturias is not (...)

The Spanish High Court of Justice for Galicia, in agreement with the court of first instance, finds that a ship manufacturer was not exempt from a real estate tax notwithstanding the application of a European State aid scheme (Navantia)
Judicial Ethics Commission (Madrid)
Galicia High Court of Justice considers that the real estate tax exemption in favour of Navantia should not be granted despite the application of the European State aid scheme. This judgment was reversed in cassation by the Supreme Court. Background & facts of the case According to (...)

The Spanish High Court of Justice for Catalonia dismisses an appeal challenging the legality of a tax on large retailers on the grounds that some establishments are exempt and thus there is unlawful State aid (Alcampo)
Judicial Ethics Commission (Madrid)
Catalonia High Court of Justice dismisses the appeal against the assessment of the regional tax on large retail establishments on the ground that what constituted State aid is the exemption in favour of certain establishments but not in the case of the now appellant undertaking. Background (...)

The Portuguese Supreme Administrative Court determines that a levy to fund the national wine regulator does not constitute State aid on the grounds that all economic agents in the market are affected and that any effect is de minimis (Wine and Vine Institute)
Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
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Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
Background and facts of the case This judgement arises from an appeal against the ruling issued by the Administrative and Tax Court of Viseu, which dismissed the action brought by the appellant against the decision of the Wine and Vine Institute (Instituto do Vinho da Vinha) ordering the (...)

The Spanish Supreme Court, following a preliminary ruling to the EU Court of Justice, dismisses an appeal against a tax on large commercial establishments because the selective criteria on which the tax is based does not breach EU State aid rules
Judicial Ethics Commission (Madrid)
The Supreme Court, after having raised the question for a preliminary ruling to the ECJ, dismisses the appeal against the Regulation of the Tax on Large Commercial Establishments of Aragón. Background & facts of the case The tax on large commercial establishments in Aragón is not (...)

The Spanish Supreme Court, following a preliminary ruling by the EU Court of Justice, decides that a tax on large commercial establishments does not breach State aid rules
Judicial Ethics Commission (Madrid)
The Supreme Court, after having raised the question for a preliminary ruling to the Court of Justice, dismisses the appeal against the Regulation of the Tax on Large Commercial Establishments of Aragón Background & facts of the case The tax on large commercial establishments in Aragón (...)

The Spanish Supreme Court, following a preliminary ruling to the EU Court of Justice, dismisses an appeal against a tax on large commercial establishments on the grounds that taxes which discriminate on surface area or environmental considerations do not breach EU State aid rules
Judicial Ethics Commission (Madrid)
The Supreme Court, after having raised the question for a preliminary ruling to the ECJ, dismisses the appeal against the Regulation of the Tax on Large Commercial Establishments of Asturias Background & facts of the case The tax on large commercial establishments in Asturias is not (...)

The Spanish Supreme Court upholds an appeal against a ruling which denied interim measures whilst the EU Commission investigated suspected illegal State aid (Astra Ibérica)
Judicial Ethics Commission (Madrid)
The Supreme Court upheld the cassation appeal against an order of the National Court that denied interim measures due to the obligations that derive for national judges from the initiation of a procedure by the European Commission concerning State aid. Background & facts of the case (...)

The Austrian Higher Regional Court of Vienna remands a State aid case to back the lower court after ruling that where a recipient of a State-backed loan does not meet the criteria for that loan the aid may be illegal and the State may legitimately renege on its contractual obligations (Alpine)
University of Vienna
Background & Facts of the case In order to mitigate the effects of the financial and economic crisis of 2008, the Austrian legislator adopted the so-called Unternehmensliquidationsstärkungsgesetz (Law on strengthening the liquidity of companies, hereafter the “ULSG“). It authorised the (...)

The Spanish High Court of Justice for Valencia revokes a temporary suspension granted against a State aid recovery decision (Institut Valencià de Finances / Hércules de Alicante Club de Futbol)
Judicial Ethics Commission (Madrid)
Valencia High Court of Justice revokes the interim measure of suspension granted by a Court of First Instance against a regional recovery decision based on a decision of the European Commission appealed to the General Court and from which the interim suspension had also been requested. (...)

The French Administrative Court of Appeal for Versailles annuls a recollection title but confirms that the principle of effectiveness prevails over damage claims by a beneficiary of State aid (Groupe Pierre Henry)
Clifford Chance (Brussels)
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On 16 December 2003, the European Commission (the "Commission") requalified a disposition of the French tax code as an unlawful aid. This disposition, article 44 septies, allowed legal entities incorporated to acquire failing companies active in the industrial sector to be partially exempted (...)

The French Administrative Supreme Court rules that orders to recover aid following a decision by the EU Commission should also include repayment of interest (Vent de Colère)
Conseil d’Etat (Paris)
The Conseil d’Etat (Council of State) had, in a decision of 28 May 2014 taken after a preliminary reference to the Court of Justice of the European Union, annulled various ministerial orders setting the conditions for the purchase of electricity produced by wind power installations, on the (...)

The French Supreme Civil Court confirms the recovery of interest despite appeal but considers that the administrative decision of recovery of the nominal amount of a State aid was late and invalid according to national law (CELF)
European Court of Justice (Luxembourg)
CELF is another long-standing French legal saga that has been brought many times in front of the Kirchberg judges. The case was so complex that it forced the Commission to adopt a Commission notice on the enforcement of State aid law by national courts (2009/C 85/01) on the 9th of April 2009. (...)

The French State Council dismisses the compensation claims brought by the beneficiary of an incompatible State aid on the grounds that the damages do not constitute compensable losses (Le Muselet Valentin)
Epex Spot (Paris)
In its confirmatory ruling issued on 7 June 2017, the French administrative supreme court (Conseil d’Etat, 9ème et 10ème chambres réunies, hereafter the “French Council of State”) dismissed the compensation claims brought against the State by the beneficiary of an incompatible State aid on the (...)

The French Administrative Court of Appeal for Douai annuls a recovery order by the Competition Authority on the grounds that the rights of the defence were infringed and for lack of motivation (Sté Unither Industries)
Clifford Chance (Brussels)
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On 16 December 2003, the European Commission (the "Commission") requalified a disposition of the French tax code as an unlawful aid. This disposition, article 44 septies, allowed legal entities incorporated to acquire failing companies active in the industrial sector to be partially exempted (...)

The Austrian Supreme Court finds that the protective scope of standstill obligations does not include the prevention of damages incurred by a competitor who has been unlawfully passed over in a public tender (Bank Burgenland III)
University of Vienna
Background & Facts of the case One of the most prominent lines of recent Austrian State aid case law is probably the one pertaining to Bank Burgenland (“BB”), which, until its privatisation, was a regional bank taking the form of a company limited by shares under Austrian law with its (...)

The French Administrative Court of Appeal for Bordeaux dismisses an appeal which sought to claim that a recovery order was unlawful because it reversed the burden of proof (Société coopérative agricole de Vergt Socave)
Clifford Chance (Brussels)
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Clifford Chance (Paris)
In 1992, France introduced an aid scheme to support the fruit and vegetable sector, comprising measures aimed at facilitating the marketing of agricultural products harvested in France, particularly in period of crisis. The aid was paid to farmers’ organizations; the latter allocating a (...)

The Austrian Supreme Court holds that the statutory limitation period under Art. 15 Procedural Regulation 659/1999 commences when the aid in question is in fact granted
University of Vienna
Background & Facts of the case In 2002, the plaintiff wanted to establish a technology centre that should provide office space to innovative companies on the territory of the defendant municipality. The aim of this technology centre was to provide innovative companies with office space (...)

The Supreme Administrative Court of Poland issues judgment on the suspension of national proceedings pending conclusion of the commission’s notification procedure
Warsaw School of Economics
Background & facts of the case Polish authorities enacted special legislation allowing holders of perpetual usufruct to have that right transformed upon request into ownership free of charge. The legislation contained a provision stipulating that it shall apply without prejudice to (...)

The Spanish Supreme Court annuls a judgement which held that the courts do not have jurisdiction to review decisions made using powers conferred by a Royal Decree which breaches EU State aid rules
Judicial Ethics Commission (Madrid)
The Supreme Court annuls the judgment of the Madrid High Court of Justice that declared its lack of jurisdiction to determine the non-application of the Royal Decree-Law 8/2014, of July 4 (equivalent and with the force of a law), concerning the national system of energy efficiency obligations (...)

The Danish Supreme Court rules that EU Commission guidelines do not place a legal obligation on the State to continually reassess a tax exemption for sailors to ensure the benefit is not diminished as tax rules evolve (DIS)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
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Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
In November of 2016, the Danish Supreme Court rejected a claim made by trade association Søfartens Ledere on behalf of two sailors against the Danish Ministry of Tax. The two sailors had been employed under a Danish net tax scheme approved by the European Commission based on its guidelines for (...)

The Spanish Supreme Court annuls a decision by the Basque Country High Court of Justice and decides that a decision on recovery of illegal State aid is void because the parties were not given a hearing (Zayer)
Judicial Ethics Commission (Madrid)
The Spanish Supreme Court (Administrative Section) annuls the recovery of State aid because, although there is no specific procedure for recovering State aid contrary to Community law under Commission Decision 2002/820/EC, it cannot be carried out outright without a hearing of the person (...)

The High Court of Eastern Denmark finds that an activity can constitute an exercise of public powers despite pre-existing operators carrying out the exact same activity for profit, rendering State aid rules inapplicable (KortCenter.dk)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
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Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
In a judgement of October 2016, the High Court of Eastern Denmark has rejected a state aid complaint against FOTdanmark, an association of Danish public authorities operating a shared database of digital topographical maps and making those maps available to members of the association and third (...)

The EU Court of Auditors publishes a special report on compliance with State aid rules in cohesion policy
Maastricht University (Maastricht)
*Article published on StateAidHub.eu blog (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

The Marseille Administrative Court of Appeal rules that the territorial authority disregarded the principle of equality in awarding a ferrying contract and failed to correctly apply three of the four Altmark criteria (Société Corsica Ferries)
Sheppard Mullin (Brussels)
On July 4, 2016, the Administrative Court of Appeal of Marseille issued a decision on the terms and conditions that apply with regard to controlling the compensation arising from public service transport concessions. Facts and procedural background The case in question pits the company (...)

The Dutch Supreme Court determines that an action by an officer of the State is not automatically an act of the State, in the context of State aid cases, instead a court must consider the broader factual background to decide imputability (Commerzbank)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
Similar to the Residex saga, the Commerzbank judgments concerned the grant of a guarantee by the director of the Rotterdam Municipal Port Authority (GHR). On 5 November 2003, Commerzbank Nederland (Commerz) provided a credit of EUR 25 million to RDM Vehicles B.V. (RDM Vehicles), which was to (...)

The Spanish Supreme Court overturns a decision by the Basque Country High Court of Justice determining that a decision on recovery of illegal State aid is null because the parties were not given a hearing (Cementos Lemona)
Judicial Ethics Commission (Madrid)
The Spanish Supreme Court (Administrative Section) annuls the recovery of State aid because, although there is no specific procedure for recovering State aid contrary to EU law under Commission Decision C (2001) 1765 final, it cannot be carried out outright without a hearing of the person (...)

The Italian Court of Rome recalculates the correct amount of ’State aid’ to be recovered as zero and orders the State to repay undertakings the ’aid’ that has already been recovered (Mediaset)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 11 February 2016, the Court of Rome annulled the recovery order issued to Mediaset concerning unlawful aid it received and recalculated the aid amount at zero. Background & facts of the case The decision under review originates from a request for a preliminary ruling submitted by (...)

The Supreme Administrative Court of Austria holds that the benefit of a provision which is contrary to the freedom of establishment because it favours nationals can be extended to foreigners since it does not constitute state aid (IFN-Holding AG)
University of Vienna
Background & Facts of the case The main proceedings concerned the corporation tax levied on CEE Holding GmbH and its successor in title, IFN-Holding AG, for the years 2006 to 2010. In those years, the two companies were members of a tax group within the meaning of § 9 of the (...)

The French Administrative Supreme Court declares that a contribution to the public service of renewable electricity does not constitute State aid (Société Praxair)
Sheppard Mullin (Brussels)
On July 22, 2015, the French Conseil d’Etat (Council of State) issued an opinion on the contribution to the public service of electricity. The contribution to the public service of electricity compensates for the additional costs arising from the charges borne by the historical electricity (...)

The Italian Council of State rules that collaboration between public universities and private companies for awards of State contracts does not fall within the purview of EU State aid rules because research by universities cannot be considered an ’economic activity’ (Baldoni and others)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 21 July 2015, the Council of State delivered Decision No. 3616 in which it rejected the appeal brought by a partnership between several private limited liability companies (“SCAI”) against Decision 1288/2013 of the Regional Administrative Court of Lombardy (“TAR Lombardy”). The TAR Lombardy (...)

The Italian Council of State rules that the national res judicata principle cannot be used to shield a company from an action to recover illegal State aid because of the primacy of EU law (INPS)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 21 July 2015, the Council of State delivered Decision No. 3596 concerning the appeal brought by the National Social Security Authority (“INPS”) against Decision 897/2014 issued by TAR Veneto, Division I, which annulled the obligation for the company Principessa S.r.l. to repay unlawful, (...)

The Spanish High Court of Justice for Galicia, in overturning a previous ruling, holds that the European State aid scheme is immaterial and that a shipbuilder cannot be liable for a real estate tax because it is a mere transferee of the land around which the dispute revolves (Navantia)
Judicial Ethics Commission (Madrid)
Galicia High Court of Justice refuses that the Navantia’s claim for a real estate tax exemption should be granted despite the application of the European State aid scheme. Background & facts of the case The previous judgment of the ECJ, Case C-522/13, Ministerio de Defensa y Navantia (...)

The England & Wales High Court rules whether statutory licence granted to the tech industry could be aid through state resources (British Academy of songwriters, composers and authors)
Blackstone Chambers (London)
Of Megabytes and Men: the private use exception under the judicial lens and lessons for state aid claims* On 19 June 2015, the High Court allowed a claim for judicial review against the decision to introduce a narrow ‘private copying’ exception to the Copyright, Designs and Patents Act 1988 (...)

The Italian Council of State overturns a ruling which annulled a EU Commission State aid recovery order on the grounds of limitation periods because such a ruling undermines the European legal principle of effectiveness (INPS)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 16 June 2015, the Council of State delivered Decision No. 3036 in the appeal brought by the National Social Security Authority (“INPS”) against a decision issued by TAR Veneto that annulled orders to repay unlawful, incompatible aid. Background & facts of the case Between 1995 and (...)

The Italian Council of State overturns a decision which blocked a recovery of State aid order by the EU commission on the grounds that there was negligible room for discretion by national authorities, thus the Regional Administrative Court of Veneto was acting ultra vires by blocking it (INPS)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 16 June 2015, the Council of State delivered Decision No. 3036 in which it partially upheld the appeal brought by the National Social Security Authority (“INPS”) against a decision issued by the Regional Administrative Court of Veneto (“TAR Veneto”). The TAR Veneto decision annulled certain (...)

The Italian Council of State upholds a ruling by the Regional Court of Lazio which held that payments to intellectual property rights holders, in this case, does not constitute State aid because the payments were not made using State resources (Nokia Italia)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 18 February 2015, the Council of State issued a non-final decision in which it partially rejected the appeals against a TAR Lazio decision brought by several companies that produce and sell personal computers, recorders, storage media, mobile telephones, and cameras. The Council of State (...)

The Danish High Court for Western Denmark allows a local authority to charge premiums for guaranteeing loans to heating providers contravening initial agreements on the grounds that failing to do so would infringe Article 107 TFEU (Sønderborg Fjernvarme)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
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Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
In January of 2015, the High Court of Western Denmark found that the Municipality of Sønderborg was right to amend two premium-free guarantees granted by the Municipality to district heating companies so that a premium would be charged going forward to avoid findings of state aid. The (...)

The Finnish Supreme Administrative Court rules that the obligation of the Finnish authorities to order recovery of unlawful aid was not affected by the court-confirmed restructuring programme (Osuuskunta Karjaportti)
University of Helsinki
The Finnish Supreme Administrative Court has decided on a complaint concerning the legality of decisions by a Finnish city (the city of Mikkeli) and, later, the Administrative Court of Kuopio . The decisions related to recovery of state aid which had been declared unlawful by the European (...)

The Spanish Supreme Court on appeal annuls a decision by the Basque Country High Court of Justice thereby nullifying a decision which sought to recover illegal State aid on the grounds that the affected parties were not given a hearing (Accesorios de Tuberías)
Judicial Ethics Commission (Madrid)
The Spanish Supreme Court (Administrative Section) annuls the recovery of State aid because, although there is no specific procedure for recovering State aid contrary to EU law under Commission Decision 2002/820/EC, it cannot be carried out outright without a hearing of the person concerned, (...)

The Polish Supreme Court departs from EU Commission decision on State aid recovery justifying that Commission decisions do not alter national technical rules in State aid recovery cases (Technologie Buczek)
Warsaw School of Economics
Background & facts of the case The case originated from the Commission’s decision no. C 23/06 (ex NN 35/06), which declared as incompatible the aid considered to be granted by Polish authorities due to their failure to collect from a company Technologie Buczek social security (...)

The EU Court of Justice outlines the principles that apply to recovery of incompatible aid (Commission / Germany)
Maastricht University (Maastricht)
i) Domestic Legal Problems Do Not Make the Recovery of Incompatible Aid Absolutely Impossible ii) Role of National Courts in Cases of Non-notified Aid* Main points The only defence for non-recovery of incompatible State aid is absolute impossibility. Obstacles in domestic legal proceedings (...)

The Czech Supreme Court confirms the duty of national courts to enforce EU State aid rules (NH Hospital / Central Bohemian Region)
Skils (Prague)
On 25 June 2014, the Supreme Court cancelled preceding decisions by the High Court in Prague (Ref. No. 3 Cmo 289/2011-142 of 29 December 2011) and by the Municipal Court in Prague (Ref. No. 32 Cm 128/2010-131 of 13 June 2011) and remanded the case back for further proceedings before the (...)

The German Government releases a ministerial draft containing grandfathering clauses and providing for a special equalisation scheme for energy-intensive companies
Bird & Bird (Dusseldorf)
EEG 2.0: Ministerial Draft on Special Equalisation Scheme for EEG Surcharge Regime for Energy-intensive Companies* A ministerial draft (Referentenentwurf) for the special equalisation scheme for energy intensive companies has been released. The special equalization scheme (besondere (...)

The Supreme Court of Austria holds that a contract concluded on non-market terms and thus in breach of state aid law is not necessarily void but can be saved by the beneficiary paying the difference to the market place (Bank Burgenland II)
University of Vienna
Background & Facts of the case One of the most prominent lines of recent Austrian State aid case law is probably the one pertaining to Bank Burgenland (“BB”), which, until its privatisation, was a regional bank taking the form of a company limited by shares under Austrian law with its (...)

The German Federal Office of Economics and Export Control publishes information regarding the reduction of the surcharge promoting renewable energy sources for energy-intensive companies and rail operators
Bird & Bird (Dusseldorf)
BAFA Publishes Figures on Reduction of EEG Surcharge for Energy Intensive Companies* The Federal Office of Economics and Export Control (BAFA) has published information regarding the reduction of the surcharge promoting renewable energy sources in Germany (“EEG-surcharge”) for (...)

The EU Court of Justice holds that national courts must assume that a measure qualifies as State aid if the Commission has opened an in-depth investigation into that measure (Lufthansa / Flughafen Frankfurt)
McDermott Will & Emery (Paris)
EU NATIONAL COURTS MAY HAVE TO ORDER RECOVERY OF STATE AID BEFORE EUROPEAN COMMISSION MAKES FINALE DECISION* The European Court of Justice decided on 21 November 2013 that EU national courts must assume that a measure qualifies as State aid, if the European Commission has opened an in-depth (...)

The Spanish Supreme Court on appeal overturns a decision by the Provincial Council of Álava which sought to recover illegal State aid on the grounds that the affected party was not given a hearing (El Coto de Rioja)
Judicial Ethics Commission (Madrid)
The Spanish Supreme Court (Administrative Section) annuls the recovery of State aid because, although there is no specific procedure for recovering State aid contrary to Community law under Commission Decision 2002/820/EC, it cannot be carried out outright without a hearing of the person (...)

The Danish Maritime and Commercial Court reverses decision of the competition authority which ordered recovery of State aid in the form of below-market rent on the grounds that the rent was charged at market rate (Hellers Yachtværft)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
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Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
By a judgement of June 2013, the Danish Maritime and Commercial Court reversed previous decisions of the Danish Competition Authority and the Danish Competition Appeals Board ordering recovery of state aid in the form of below-market rent to a tenant of a publicly owned property. The Maritime (...)

The High Court of Eastern Denmark rejects claim that funding resulting from an open and fair tendering procedure constitutes State aid (SINE)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
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Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
In a judgement of May 2013, the High Court of Eastern Denmark found that a tender procedure for a contract under which the winning bidder was to provide access to a nationwide radio-based telecommunications network to public emergency response services did not entail state aid. One of the (...)

The Spanish Supreme Court annuls a decision ordering the recovery of State aid on procedural grounds, the concerned party was denied their constitutional right to be heard (Euro Fleet Cars)
Judicial Ethics Commission (Madrid)
The Spanish Supreme Court (Administrative Section) annuls the recovery of State aid because, although there is no specific procedure for recovering State aid contrary to Community law under Commission Decision 2002/892/EC, it cannot be carried out outright without a hearing of the person (...)

The Dutch Supreme Court remands a case on recovery of State aid to an appellate court to determine whether a loan provider also benefited from a State guaranteed loan, or whether the recipient was the sole beneficiary (Residex)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
After taking account of the preliminary ruling of the Court of Justice, the Supreme Court (SC) recalled that Residex argued that a declaration of nullity on the basis of Article 3:40 of the Dutch Civil Code does not lead to a restoration of the status quo ex ante as required by Article 108(3) (...)

The Dutch District Court of Rotterdam judges that a municipality breached State aid rules by running a ferry route and that the EU Commission should have been notified about the aid (Ferry service Gorinchem)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
By decision of 3 February 2011, the Municipality of Gorinchem (the Municipality), the defendant, designated the implementation of the ferry route between the towns Boven Hardinxveld - Werkendam - Gorinchem - Sleeuwijk (the ferry route) as a Service of General Economic Interest (SGEI) and (...)

The Polish regional administrative court in Gdansk issues decision on advance payment for prospective purchase of equipment as a breach of the incentive effect rules
Warsaw School of Economics
The court reviewed a decision of local Polish authorities which ordered reimbursement by a small undertaking of an EU-funded subsidy, due to alleged breach of incentive effect rules by that undertaking. More specifically, the authorities found that the beneficiary undertaking made an advance (...)

The High Court of Eastern Denmark rejects claim by a radio licensee seeking a reduction in their fee because a rival charged a lower fee benefitted from State aid, the court rejected the argument because the reduction occurred as a result of incorrect information (FM 6)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
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Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
By a judgment of March 2013, the High Court of Eastern Denmark has rejected a claim by a holder of a radio license concession that the fee for the said concession should be reduced because another radio license concession holder had allegedly received state aid in the form of an insufficient (...)

The Irish High Court dismisses claims for the liability of the State for damages regarding an unlawful risk equalisation scheme in the provision of private health insurance by insurers (BUPA)
Ryanair (Dublin)
Background In 2006, the Irish High Court dismissed the claims of BUPA Ireland (“BUPA”) challenging the introduction by the Irish State of a risk equalisation scheme (the “Scheme”) in the provision of private health insurance by insurers in Ireland. The scheme operated based on the concept of (...)

The French Supreme Court considers the recovery of State aid impossible if the collective procedure deadlines have passed (Trésorerie générale du Jura)
Clifford Chance (Brussels)
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Clifford Chance (Brussels)
On 16 December 2003, the European Commission (’Commission’) identified a French tax exemption scheme as illegal state aid, ordering France to recover it. This disposition, article 44 septies, allowed legal entities incorporated to acquire failing companies active in the industrial sector to be (...)

The Dutch State Council finds that by offering a distance learning Bachelor of Laws programme, a Dutch University is not performing an economic activity and therefore confirms that it is not to be seen as an undertaking (Open Universiteit Nederland)
VVGB (Brussels)
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Allen & Overy (Brussels)
NL29 Open Universiteit Nederland 30.01.13 Administrative Jurisdiction Department of the Council of State, State Aid On the 30th of January 2013, the Council of State found that by offering a distance learning Bachelor of Laws programme, the ‘Open Universiteit Nederland’ (open university of (...)

The Dutch Council of State concludes, following a reference to the EU Commission, the funding of a distance learning course by the State does not breach State aid rules because the provider cannot be considered an undertaking, notwithstanding the fact that there are private operators in the market (LOI / Nederlands Talen Instituut)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
By decision of 21 November 2008, the Minister of Education, Culture and Science refused to grant permission to the Open University of the Netherlands (OUN) to provide the part-time Higher Education (one step below university level) bachelor’s degree programme in law in the form of distance (...)

The French Supreme Court considers the recovery of State aid impossible if the collective procedure deadlines have passed (Directeur départemental des finances publiques de la Loire)
Clifford Chance (Brussels)
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Clifford Chance (Brussels)
On 16 December 2003, the European Commission (’Commission’) identified a French tax exemption scheme as illegal state aid, ordering France to recover it. This disposition, article 44 septies, allowed legal entities incorporated to acquire failing companies active in the industrial sector to be (...)

The Finnish Supreme Administrative Court decides that the EU State aid rules do not apply to a transaction where industrial property was sold (KHO)
University of Helsinki
The municipal executive board of the municipality of Iitti had accepted a sale of industrial property choosing one of two offers made. The industrial property included a land area and an industrial building. Due to a complaint by a resident of the municipality, a Finnish administrative court (...)

The Dutch Administrative Court for Trade and Industry dismisses an application which claimed that the State propped up two rival healthcare providers but did not seek recovery of the aid, the claim was dismissed for absence of locus standi and that it would be contrary to the State aid control system to both find that the aid was illegal but not seek to recover it (Thuiszorgservice / Nederlandse Zorgautoriteit)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
TZG and HWW were two foundations that provided healthcare services falling within the scope of the Exception Medical Expenses Act (the Algemene Wet Bijzondere Ziektekosten, AWBZ). TZG and HWW functioned to ensure the continuation of healthcare services of another healthcare provider which had (...)

The French Administrative Court of Appeal confirms that principles of legitimate expectations and legal certainty should not prevent State aid recovery (Societe Adiamix)
Clifford Chance (Brussels)
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On 16 December 2003, the European Commission (the ’Commission’) requalified a disposition of the French tax code as an unlawful aid. This disposition, article 44 septies, allowed legal entities incorporated to acquire failing companies active in the industrial sector to be partially exempted (...)

The Spanish Supreme Court annuls a decision by the National High Court which refused interim measures after the EU Commission initiated proceedings in a State aid case (Astra Ibérica)
Judicial Ethics Commission (Madrid)
The Supreme Court annuls the refusal of the interim measures by an order delivered by the National High Court taking into account that it was based, in particular, after the opening, by the European Commission, of a procedure under the provisions of Article 108.3 Treaty on the Functioning of (...)

The Dutch Parliament adopts new rules of conduct for the State when carrying out economic activities
European Commission - DG COMP (Brussels)
The Netherlands: New Rules of Conduct for the State when carrying out Economic Activities* On 1 July 2012, new legislation came into force in the Netherlands outlining the rules of conduct for the State (national and local governments) when it engages in economic activities and competes with (...)

The Austrian Regional Court of Klagenfurt rules that defendants must pay local authority liability commissions for loan guarantees because the fact that the operative law does not expressly provide for liability commissions does not preclude the State from charging them
University of Vienna
Background & Facts of the case In 1990, the Province of Carinthia enacted the Kärntner Landesholding-Gesetz (Law on the regional holding company of Carinthia, hereafter “K-LHG”), that provided for a transfer of all the assets of the regional mortgage bank, that had existed since 1894, (...)

The Danish High Court for Western Denmark finds that the national Government was justified in revoking subsidies to a ready-meal manufacturer that were designated for SMEs because the controlling parties also owned other companies in adjacent markets, negating the requisite SME status (Skare Food)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
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Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
In a judgement of April 2012, the High Court of Western Denmark has considered the EU’s SME definition. In the judgement, the court found that a business that had initially been awarded app. DKK 3.4 million (app. EUR 460,000) in subsidies under a European Agricultural Guidance and Guarantee (...)

The Spanish High Court of Justice for the Basque Country upholds the decision by local authority to try to recoup illegal State aid from a recycling centre (Beotibar Recycling / Diputación Foral de Vizcaya)
Judicial Ethics Commission (Madrid)
The Basque High Court confirms the legality of the decision to recover unlawful aid granted by the Provincial Authority of Biscay. Background & facts of the case The acts of recovery of aid at issue in the context of the implementation of an enforceable and final Community decision (...)

The Portuguese Supreme Administrative Court draws to a close the long-running private dispute over State aid in the public transport sector, declaring that the complainants have locus standi and that the aid contravened EU rules (Carris)
Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
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Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
Background & facts of the case This was a legal action brought before the Supreme Administrative Court (“SAC”) by several entities – among them ANTROP, an association of urban passenger transport service providers – against a Resolution of the Council of Ministers that, in 2003, imposed (...)

The Danish Competition Authority decides that State aid granted by a municipality to a supermarket by renting out land on favourable terms restricts competition (Furesø)
Danish Competition and Consumer Authority (Copenhagen)
State aid granted by the municipality of Furesø to a supermarket restricts competition* The Danish Competition Council decided on 21st of December 2011 that State aid granted by the municipality of Furesø to a supermarket by renting out land on favourable terms restricts competition. In (...)

The Spanish High Court holds that EU Union law governs the rules around interest to be paid on loans received as illegal State aid, forcing a steel producer to pay a compound interest rate (Celsa Atlantic)
Judicial Ethics Commission (Madrid)
The Spanish National High Court of Justice confirms the calculation of the interest made by the Spanish Administration and which Celsa Atlantic must pay for the repayment of unlawful and incompatible aid. Background & facts of the case The decision of the Commission of the European (...)

The French Council of State concludes that contribution to public electricity service does not constitute integral part of state aid (SNC Stop Hotel Villeneuve D’Ascq)
Clifford Chance (Brussels)
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Clifford Chance (Brussels)
The company SNC Stop Hotel Villeneuve D’Ascq (Stop Hotel) has asked the French Energy Regulatory Commission (’CRE’) to reimburse a part of its tax contribution to the public service for electricity (contribution au service public de l’électricité) (’CSPE’), arguing that it constitutes state (...)

The Dutch Court of Appeals for Amsterdam dismisses a claim that alleges a local authority leasing a building to an undertaking constitutes State aid on the grounds that there is not sufficient evidence to suggest that the rent is not market rent (Apotheek Amerongen-Elst / Bosman / Kranenburg)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
On 1 October 2008, the Elst Health Centre Foundation (SGE), a commercial health centre governed by general practitioners and physiotherapists, entered into a preliminary rental agreement with the Municipality of Rhenen (Municipality), the defendant, regarding the lease of certain premises for (...)

The EU General Court rules that the Commission failed its duty to act following a complaint by low cost airline against alleged State aid to Italian airlines (Ryanair)
Van Bael & Bellis (Brussels)
On 29 September 2011, the General Court handed down its judgment concerning complaints by Ryanair concerning alleged state aid to Italian airlines. The General Court found that the Commission had failed in its duty to act on the complaints. The case stems from letters sent by the low (...)

The West African Economic and Monetary Union Competition Authority finds that Togo infringed regional State aid law by taking actions that favor an undertaking to the detriment of its competitors doing business in the common market (Asky)
Africa University (Mutare)
1 Introduction and background This contribution reports on a case related to State Aides decided by the Competition Commission of the West African Economic and Monetary Union (WAEMU). The decision, ASKY, raises issues at the cross-road of trade, regional integration and competition law. (...)

The Italian Council of State rejects a claim that a tax on large electricity providers constitutes State aid in favour of smaller providers on the grounds that there is no transfer of State resources (Eridis)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 20 July 2011, the Council of State delivered Decision No. 4388 in which it upheld several TAR Lombardy decisions. Those decisions had partially rejected 14 annulment actions brought by several producers and distributors of electricity, gas, and oil products. Background & facts of the (...)

The Danish Competition Authority finds that a municipality granted an unlawful aid to a national football club but failed to order repayment because the aid was granted before the relevant State aid provisions (Farum Park)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
On 22 June 2011 the Danish Competition Council issued a decision dealing with the question whether a Danish municipality (municipality of Furesø) had rented a Center for Sport and Culture to a local football club (FC Nordsjaelland) to a price below market price, leading to a grant of unlawful (...)

The Danish Competition Authority orders full recovery of unlawful aid according to section 11a of the Competition Act after the case was referred for reconsideration by the Competition Appeals Tribunal (The Kastrup Marina Case)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
By its second decision of 22 June 2011 in the Kastrup Marina Case the Danish Competition Council has for the first time ever ordered full recovery of unlawful and incompatible aid under Section 11a in the Danish Competition Act (corresponding to Article 107 of the EUF Treaty). The first (...)

The Supreme of Austria holds that general infrastructure measures potentially increasing the attractiveness of a shopping centre for its customers do not constitute state aid in its operator’s favour
University of Vienna
Background & Facts of the case The first defendant runs a shopping centre (called “Murpark”) on the outskirts of the city of Graz. At the beginning of 2006, when Murpark was still in construction, the first defendant sold a property near the future shopping centre to the second (...)

The Slovakian Parliament adopts an amendment enabling that an EU Commission’s decision on the recovery of state aid be directly enforceable against the beneficiary
Wolf Theiss (Bratislava)
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Wolf Theiss (Bratislava)
An amendment to Act No. 231/1999 Coll. on State Aid, as amended (the “Act on State Aid”) and to Act No. 233/1995 Coll. the Code of Enforcement of Judicial Decisions, as amended (the “Enforcement Code”), was passed on 23 March 2011, enabling that a Commission’s decision on the recovery of state (...)

The Dutch Administrative Court for Trade and Industry dismisses claim of negative State aid by a meat producer which sought to bring down a levy implemented to fund food safety standards on the grounds that there cannot be State aid where no State resources are in play (Compaxo Vlees Zevenaar B.V. / het Productschap Vee en Vlees)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
From 2006 onwards, the inspection of red meat (after slaughter) in the Netherlands was no longer the responsibility of the Netherlands Food and Consumer Product Safety Authority, but of a separate private entity KDS. During that reorganisational period, the State decided that a new tax be (...)

The Dutch Administrative Court for Trade and Industry dismisses an appeal by an industry association against a decision to grant an electricity company €15M on the grounds that all parties agreed that absent the payment the venture would be inviable which is undesirable because of the deals liberalising effect (VEMW)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
The Dutch Electricity Act (Elektriciteitswet 1998) contained a provision which regulated the use of the proceeds from the auction on the Amsterdam Power Exchange Spotmarket B.V. (APX) of electricity transported across the Dutch border. This provision stated that the relevant network operator (...)

Aviation sector: The German High Court rules that companies have the standing to sue against illegal State aid to competitors (Lufthansa / Ryanair)
Jones Day (Frankfurt)
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Jones Day (Dusseldorf)
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Jones Day (Frankfurt)
In a decision of 10 February 2011, the German Federal Court of Justice (Bundesgerichtshof, BGH) ruled that companies can bring court action the challenge state aid granted to their competitors. Companies doing business in Germany will in the future have to ensure that all their transactions (...)

The Dutch Council of State rejects the claim by a provider of health insurance that basing an equalisation payment on estimated healthcare costs when the real cost is known and more expensive amounts to State aid (Achmea / College voor zorgverzekeringen)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
Each year, the Dutch Health Insurance Board (the Board) pays out an equalisation contribution to a health insurer if the latter has met its obligations to report its intention to offer and implement healthcare insurance to the Dutch Healthcare Authority. In 2008, the Board had, in accordance (...)

The Dutch Council of State overturns a District Court judgement and declares financial contributions by municipality to pay for upkeep for a local swimming pool does not breach State aid rules because there is no effect on interstate trade (Sportgebouw Bemmel)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
By decision of the 4 February 2009, the Municipal Executive of Lingewaard (Municipal Executive) granted a zoning plan exemption and a building permit to the municipality of Lingewaard for the construction of a sports building with a swimming facility and a fitness centre in Bemmel. The (...)

The Versailles Court of Appeal puts an end to the debate on whether the tax on direct sales amounts to State aid on the basis of article 108.1 TFEU (Glaxosmithkline / Boiron / Bristol Myers Squibb)
CMS Bureau Francis Lefebvre (Paris)
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PDGB Avocats (Paris)
In three decisions handed down on 2 September 2010, the Court of Appeal of Versailles ruled that the tax on direct sales failed to comply with the “Altmark test” designed by the European Court of Justice (now the Court of Justice of the European Union, hereinafter “the Court of Justice”) in (...)

The French Administrative Court of Appeal of Nantes rejects the reimbursement of the already recovered sums of an illegal State aid from the beneficiary despite a formal illegality of the recovery orders (Scott / Kimberly Clark)
European Court of Justice (Luxembourg)
Scott and Kimberly Clark has been a long-standing saga in front of the French Courts that has often needed CJEU intervention. Scott Paper Company is an American company engaged in the manufacture of paper. To enable the construction of a manufacturing plant in France, Scott SA, a French (...)

The Dutch Supreme Court upholds the decision of the Court of Appeals of The Hague stating that a State guaranteed loan is State aid and consequently to restore competition it is necessary to examine not only the loan recipient but also the provider (Residex)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
Residex appealed the judgment of the Court of Appeals of the Hague at the Dutch Supreme Court (SC). The SC held that there was no dispute as regards the Court of Appeals’ finding that the guarantee constituted State aid within the meaning of Article 107(1) TFEU and that it should therefore (...)

The Italian Council of State rejects a request for annulment of State aid recovery order because the aid was not notified and approves by the EU Commission which is exclusively competent in assessing legitimacy of State aid (Ori Martin)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 17 May 2010, the Council of State delivered Decision No. 3046 in a case concerning the Italian Ministry of Industry’s revocation of aid granted to Ori Martin Acciaieria S.p.A. (“Ori Martin”) in violation of European Coal and Steel Community (“ECSC”) High Authority Decision 22/66 of 16 (...)

The Finnish Ministry of Finance adjusts its State aid rules regarding municipal enterprises (Local government operations in a competitive market environment and corporatization of operations)
Finnish Competition and Consumer Authority (Helsinki)
The Finnish authorities have been advised by the European Commission’s preliminary view to abolish a range of tax exemptions and unlimited State guarantees granted to municipal enterprises. The Commission, indeed, is taking a strict approach to the distortion of competition regarding municipal (...)

The Italian Supreme Court rules that a non-profit banking foundation is not eligible for a tax exemption because an Italian law permitting the tax break for non-profits must be disapplied in cases where the entity is clearly an undertaking within the meaning of Article 107 TFEU (Agenzia delle Entrate / Fondazione Cassa di Risparmio di Carpi)
BonelliErede (Brussels)
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Luiss Guido Carli University (Rome)
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BonelliErede (Brussels)
On 4 February 2010, the Supreme Court delivered Decision No. 2592 in which it upheld the appeal brought by the Italian tax authority (“ITA”, Agenzia delle Entrate), the entity responsible for collecting taxes and revenue in Italy, against a decision issued by the Regional Tax Court of Emilia (...)

German State aid private enforcement: The problem of access to the Courts
German Ministry for Science, Economics, and Transport (Kiel)
1. General considerations State aid is prohibited - art. 87 EC, now art. 107 TFEU. This is a very apodictic statement. In real life, things are slightly more complicated. State aid, money or adequate advantages granted to private entities by public bodies, is common practice in many forms. (...)

The Dutch Supreme Court determines that a tax on airlines which start their journeys in the Netherlands does not constitute a selective advantage on airlines which merely make a stop there notwithstanding the fact that those airlines are exempt (Ryanair / Maastricht Aachen Airport)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
Between 1 July 2008 and 1 July 2009, a so-called “flight tax” was levied on every air passenger starting their journey from the Netherlands. While the tax was levied on the airline operator, the legislator had assumed that the airlines would pass the tax onto passengers. However, because the (...)

The Portuguese Competition Authority recommends that the Regional Government of Madeira notify to the EU Commission State aid granted to a newspaper editor (Jornal da Madeira)
DLA Piper (Lisbon)
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Pares Advogados (Lisbon)
On 29 July 2009 the Portuguese Competition Authority issued a recommendation addressed to the Regional Government of the Archipelago of Madeira urging the notification to the European Commission of financial support amounting to € 23,4 million granted until 2007 to Jornal da Madeira, a (...)

The Republic of Serbia adopts its first national law on control of State aid
University of Macau - Faculty of Law
On 8 July 2009 National Assembly of the Republic of Serbia (Народна скупштина Републике Србије) adopted the nation’s first Law on Control of State Aid . The law defines state aid as any public expenditure, which puts the recipient in privileged position in relation to its competitors and (...)

The Supreme Administrative Court of Austria holds that standstill obligation does not prevent the granting of aid in respect of a period prior to the Commission’s retroactive approval of the underlying aid scheme (Wienstrom)
University of Vienna
Background & Facts of the case Pursuant to § 13(1) of the Green Electricity Act, operators of existing and modernised CHP (combined heat and power) plants were compensated by the competent authority for the costs required to maintain operation in an amount to be determined annually by (...)

The Stockholm Administrative Court finds that the transfer of a number of public schools and kindergartens to a private undertaking constitutes illegal State aid under national law (Lagergreen)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background In 2008 the Municipality Board in Upplands Väsby decided to transfer a number of public schools and kindergartens to a private company, Magnetica Education AB. The transfer price was 2 136 000 SEK which was the estimated value of the inventory and equipment in the schools (...)

The Stockholm Administrative Court finds that a guarantee undertaken by a municipality in favour of a private company that has constructed a building for kindergarten activities does not constitute illegal aid under national law (Rydfeldt)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background In 2008 the Municipality Board in Kungsbacka decided to undertake a guarantee of 17 million SEK in favour of a private undertaking. The private undertaking had constructed a building to be leased by the municipality for kindergarten activities. A private citizen, resident (...)

The Swedish Administrative Court of Appeal finds that the privatisation of home-help services decided by the municipality constitutes illegal aid to an undertaking on the basis of national provision while refusing to consider the EC State aid point of law (Jonas Eklund)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background In May 2008, Stockholm municipality decided to transfer the public home-help service in Rågsved and Hagsätra to a private undertaking, Vantörs Hemtjänst AB. Jonas Eklund, a resident in the municipality, initiated court proceedings pursuant to the Local Government Act. He (...)

The Swedish Administrative Court of Appeal states that a municipality’s sale of a high school constitutes illegal State aid based on national provision while declining to rule on the EC State aid point of law (Christer Backstrom)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background In May 2007, the municipal council in Täby, north of Stockholm, decided to close down the public activity at the high school “Tibble Gymnasium” and to approve that the school activity be carried on by a private undertaking (“Tibble Friståande Gymnasium AB” - “Tibble (...)

The Swedish Administrative Court of Appeal finds that the decision taken by a municipality board to participate in a subscription of shares in a company owned by the municipality constitutes illegal aid to an undertaking (Ingemar Basth)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background In 2007, the municipality board in Ulricehamn decided to participate in a subscription of shares in a company owned by the municipality to a total value of 15 million SEK. A private citizen resident in the municipality brought court proceedings in accordance with the Local (...)

The German Regional Court rules that an EC Commission decision ordering recovery of an illegal aid measure must first be issued before a German court may deal with a request brought by a competitor (Ryanair 4)
Delegation of the European Union to the United States (Washington D.C.)
,
European Commission
Brief description of the facts and legal issues The Coblence Higher Regional Court of appeal rejects the appeal lodged by Lufthansa against LG Bad Kreuznach’s judgment and rules that the appeal lacks a legal basis. A Commission decision (be it provisional or definitive) ordering the recovery (...)

The Swedish Administrative Court of Appeal finds investment by the City Council of Stockholm in expansion of broadband to be illegal State aid that should have been notified to the Commission according to Art 88.3 EC (Thomas Svensson)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background In 2005, the City Council of Stockholm approved an “action plan” meaning that the four important housing corporations controlled by the City would make considerable investments in broadband infrastructure. Thomas Svensson, being a local resident, appealed the decision (...)

A Swedish Court applies the market economy investor principle in a State aid case (Thomas Svensson / City of Stockholm)
Cederquist (Stockholm)
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Djungo (Stockholm)
Background In November 2005, Thomas Svensson (“Svensson”) appealed a decision by the City Council of Stockholm (the “City”) to the Stockholm County Administrative Court claiming that the decision by the City to give green light to four Stockholm city-controlled companies to invest in (...)

The Belgian Court of Commerce of Brugge rules that the implementation of a State aid measure must be postponed until the EC Commission has finished its investigations (Oostende fish market - AGVO)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual Background The municipality of Oostende has granted several benefits to the fish market of Oostende. This includes the grant of start-up capital by the Autonoom Gemeentelijke Vismijn Oostende (“AGVO”); AGVO then subsequently granted financial assistance to EVO and PO. In addition, (...)

The Finnish Administrative Court approves the applicant’s claim on alleged State aid and rules that the measures may not be put into effect before the EC Commission has made its final decision on compatibility (Mikkeli City Council)
Dittmar & Indrenius (Helsinki)
Factual Background The City Council of Mikkeli had on 8 December 2008 made a decision, by which it granted deferments to amortizations of a debt to an company operating within food manufacture subject to reorganization proceedings. In addition, the City Council had decided to postpone some (...)

The German Federal Fiscal Court holds that legitimate expectations do not provide a sufficient basis for annulling a decision by the EU Commission on recovery of State aid where the notification obligation has not been complied with and that "time barring" national rules are ineffective due to the primacy of EU law
Gleiss Lutz (Brussels)
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Jones Day (Brussels)
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Gleiss Lutz (Brussels)
The Federal Fiscal Court (Bundesfinanzhof) clarified that it was prevented from re-assessing the lawfulness of the Commission decision ordering recovery of aid, and in particular its finding that the relevant tax provisions involve State aid. It ruled that Germany’s obligation to recover (...)

An Italian Court holds that the decision of the EC Commission to open a formal investigation procedure on the same State aid measure at stake before national courts, is not per se sufficient to prove the fumus boni iuris to grant interim relief (AirOne)
EUJUS (Rome)
Factual background The Court, in line with its previous judgment of 9 September 2008 (Case of the Court of first instance of Sassari Alghero, 09 September 2008, on the same issue), rejected the claims made by AirOne asking for a declaration of unlawful State aid granted to Ryanair and for an (...)

The Belgian Constitutional Court finds there was no disguised State aid regarding the underevaluation of costs for operators of nuclear reactors in comparison to the costs borne by other operators (Union professionnelle belge des médecins spécialistes en radiothérapie-oncologie)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual background L’Agence fédérale de controle nucléaire (the Federal Agency of nuclear control) is a public organisation with legal personality in relation to protection of the population and environment against the dangers of ionizing rays. The Agency is also responsible for providing (...)

The Polish Supreme Court rules that ignorance of the law burdens both contracting parties if they are concluding a contract which is contrary to law, in particular with EC State aid law (Fish-processing plant)
Greenberg Traurig (Warsaw)
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UNIMOT (Zawadzkie)
Factual background: The claimant brought an action against the Agency for Restructuring and Modernization of Agriculture for payment in relation to the agreement on grant of financial aid for the claimant in respect of a project relating to periodic suspension of activities concerning (...)

The Krakow Court of Appeal rules on the issue of costs reimbursing in the case of undue aid (Agency for Restructuring and Modernization of Agriculture / M. L.)
Greenberg Traurig (Warsaw)
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UNIMOT (Zawadzkie)
Factual background: The plaintiff brought an action against M.L. to recover unduly received financial aid in relation to SAPARD Programme. According to the agreement between the Agency and the defendant, the Agency undertook to refund part of the costs incurred in order to complete the (...)

The Spanish Superior Court of Justice for the Basque Country sets the criteria to consider a regional tax measure as State aid (Companies’ tax (I))
Hogan Lovells (Madrid)
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Allianz (Brussels)
Factual Background: Appeal by the region of Castilla and Leon against the fiscal regional Law of Biscay 6/2007 (hereinafter, "Law 6/2007"), which modified three articles of the Companies’ tax regional Law of Biscay in order to grant tax benefits to companies located in the region of Biscay (...)

The German Administrative Court rules that a service contract for the regional rail public transport is not subjected to State aid notification (Nordrhein-Westfalen)
Delegation of the European Union to the United States (Washington D.C.)
,
European Commission
Brief description of the facts and legal issues The Gelsenkirchen Administrative Court holds that a service contract for regional public rail transport is not subject to a notification requirement. A definitive Commission decision stating declaring that Article 87(1) EC has been infringed is (...)

The French State Council orders stay in proceedings regarding the recovery of unlawful aid in the CELF case and refer to the ECJ the question of the extent of the national courts’ obligation in such "exceptional circumstances" (CELF II)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual background CELF is a cooperative society in public limited company form and operates as an export agent. It aims to process orders from abroad and from the French overseas territories and departments for books, brochures and any communication media and, more generally, to perform (...)

The German Government agrees to apply appropriate measures in the financing regime for public service broadcasters in order to comply with EC State aid rules
European Commission - DG COMP (Brussels)
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European Commission - DG COMP (Brussels)
"Commission and Germany agree on better control for the use of State aid in the broadcasting sector"* On 18 December 2008, Germany’s 16 Ländersigned a new inter-state treaty on broadcasting, which implements a set of appropriate measures under the terms of a Commission Decision of April (...)

The Austrian Supreme Court suspends proceedings under the Austrian competition act concerning whether the sale of a bank constituted State Aid (SLAV)
University of Vienna
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Peter Thyri Competition Counseling Research (Vienna)
Factual background The privatisation of Bank Burgenland (“BB”) was a condition for the approval of a restructuring aid for Bank Burgenland by the Commission in 2004. In March 2006, following a third and finally successful public tender, Land Burgenland finally sold Bank Burgenland to GRAWE (...)

The Austrian Supreme Court holds that bidders in a public tender are competitors within the meaning of the Austrian Act against unfair competition
University of Vienna
Background & Facts of the case One of the most prominent lines of recent Austrian State aid case law is probably the one pertaining to Bank Burgenland (“BB”), which, until its privatisation, was a regional bank taking the form of a company limited by shares under Austrian law with its (...)

The Brussels Court of Appeal rejects State aid pleas in the context of a bank rescue plan (Fortis)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
1. Introduction In order to tackle the financial turmoil of last September, the Belgian State acquired in two steps Fortis Bank. Firstly, on 28 September 2008, the Belgian State (via the “SFPI”, the “Federal Participation and Investment Company”, together with the Luxembourg and the Dutch (...)

The Dutch Administrative Court for Trade and Industry rules, in a public bus State aid case, that State aid may not have breached rules in a substantive way but procedure is worthy of closer examination (Connexxion)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
On the 24 July 2008, the municipality of Rotterdam awarded a concession for public transport by bus in Rotterdam to RET N.V. (RET) for a period of three years. The applicant, Connexxion Openbaar Vervoer N.V. (Connexxion), a private rival transport enterprise, appealed against this decision. (...)

The Belgian Supreme Court applies the ruling of the EU Court of Justice and holds that the tax on slaughterhouses does not constitute unlawful State aid as it is part of an aid scheme declared compatible (Slachthuis Swaegers)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual Background Under the Belgian Animal Health Act 1987 (the “1987 Act”), compulsory charges were levied on slaughterhouses. These charges were subsequently used to finance animal welfare measures that improve the hygiene, health and quality of life of animals. This scheme had, however, (...)

A Swedish Administrative Court annuls a decision of a Municipal Council to sell a swimming arena but refuses to consider the EC State aid point of view on the basis of possible de minimis exemption (Ingolf Falk)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual background The applicant is a local resident. He appealed the municipal council in Övertorneå’s decision to sell a swimming arena for 1,00 SEK to the Administrative Court. The sale was not preceded by a public bidding procedure, nor by any independent expert evaluation of the (...)

The Finnish Administrative Supreme Court sends a case back to the Administrative Court as it had not ruled on the question of whether the arrangement constituted State aid
Dittmar & Indrenius (Helsinki)
Factual Background The City Council of Kouvola had resolved to approve the purchase offer of 500,000.00 euros on a parcel of land. The purchase offer amounted to the equivalent of the price announced by the City of Kouvola, but after the approval of the offer, two other offers with higher (...)

The Lithuanian Administrative Supreme Court states that a municipality is not entitled to grant interest-free credits without applying State aid rules (Kedainiai District Municipality Council)
Cobalt Legal (Vilnius)
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Valiunas Ellex (Vilnius)
Factual background On 13 October 2000 the municipality council adopted decision No 187 “Concerning the Establishment of a Fund to Support Producers of Agriculture Products”. The decision provided for granting of interest-free credits to natural persons, undertakings, cooperatives, village (...)

The UK Lands Tribunal rules that the application of a different valuation method between undertakings is not evidence and to assess the value of a telecommunications network has resulted in an advantage likely to confer unlawful State aid (Kingston / British Telecom)
UK Competition & Markets Authority - CMA (London)
The situation of BT and the assessment of the valuation of its fibre optic hereditament is not comparable to that of Vtesse and therefore it is impossible to say whether BT has been given any unfair advantage or more favourable treatment contrary to the broad principles of Article 87 EC. (...)

The French State Council deals with alleged State aid claimed by an interprofessional organisation requesting the annulment of a ministerial decision (Comité National des Interprofessions des Vins à Appelations)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual Background Twelve interprofessional organisations lodged a series of actions in annulment against a ministerial decision before the administrative jurisdictions, rejecting their demand for notification to the European Commission of a provision of the French rural code (Code rural) (...)

The French State Council delineates an administrative judge’s jurisdiction over governmental decisions when applying Art. 88.3 EC (Comité national des interprofessions des vins à appellations d’origine)
Lenoir Avocats (Paris)
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Orrick, Herrington & Sutcliffe (Paris)
This is the first time that the French Supreme Administrative Court has had to decide on an application for annulment for refusing to report State measures which may qualify as state aid. The case at stake provided the French Supreme Administrative Court with an opportunity to specify the (...)

The German Federal Court of Justice holds that the authority granting State aid must advise the guarantor of the aid recipient when allocating non notified aid and that, if the granting authority has omitted to do so, the guarantor is entitled to oppose an action for damages against the recovery (Landes Brandenburg)
Delegation of the European Union to the United States (Washington D.C.)
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European Commission
Factual background On 1 December 2000, the applicant granted D. GmbH a subsidy of over € 1 million for the development of business premises in the greater Berlin area. The general collateral clauses in the official letter granting the aid stated in which cases the aid might have to be repaid (...)

A Swedish Administrative Court rules that a sale of a hotel to former leaseholder was made below market price and annuls the decision but withou considering the EC State aid point of view (Petra Nyström)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background On June 17, 2008, the municipal council of Kristinehamn decided to sell the city hotel in Kristinehamn for 3 million SEK to the leaseholder of the hotel. Petra Nyström, a local resident, appealed the decision to the Administrative Court arguing, inter alia, that the (...)

The Italian Supreme Court refers for a preliminary ruling to the EU Court of Justice the question of whether Italian tax relief measures for cooperative societies constitute State aid within Art. 87 EC (Famiglia Coop Agricola Carli Albino)
EUJUS (Rome)
Factual background Under Italian tax rules, cooperative societies benefit from significant fiscal reliefs. The ability to benefit from the reliefs is dependant upon the not-for-profit nature of the activity performed by the cooperative. Similarly to tax purposes, the not-for-profit nature (...)

The Dutch State Council rules that if the execution of a project does not depend upon the financial support of the public authorities, it does not constitute a form of State aid (Cassini)
Adyen (Amsterdam)
Factual Background On 19 June 2007, Provincial Executive Noord-Holland approved a zoning plan drawn up by the Municipality of Heerhugowaard in which the development of a wind park to generate renewable energy was approved. The construction of this wind park required very substantial (...)

A Swedish Administrative Court finds that an agreement on sale and decontamination of a piece of land constitutes illegal State aid under national law as well as under the EC law (Egeskans)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background The municipal council in Karlskrona decided to sell a piece of land to the building contractor NCC for 5 million SEK. Moreover, it was agreed that the municipality should pay the costs of NCC decontaminating the land (which was required if the land was to be exploited). (...)

A Swedish Administrative Court of Appeal finds that costs from the EU regional development fund can not be considered as State aid since they favoured an individual undertaking and were hence illegal (Länsstyrelsen / Örebro län)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background In 2005 the private undertaking AB Göta Kanalbolag was given a grant from the European Regional Development Fund as regards the project “Göta Kanal fortsättning 2006” (Göta Kanal Continues 2006 - Göta Kanal being a famous channel that crosses Sweden from West to East). The (...)

A Dutch District Court holds that the award of parking management contracts in a cross-border region does not have automatically an effect on intra Community trade (P1 Holding)
Arendt & Medernach (Luxembourg)
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NautaDutilh (Luxembourg)
Case 1. On 22 November 2002, the Municipality of Maastricht has awarded directly, i.e., without any public tender procedure a contract to the undertaking Q-Park for the renovation and operation of several parking lots for a period of 30 years. P1, one of Q-Park’s competitors, challenged (...)

A Dutch District Court rules that an agreement between a municipality and a company for the use of car parks is not contrary to Art. 87 EC (P1 Holding)
Adyen (Amsterdam)
Factual Background The Municipality of Maastricht entered into an agreement with Q-Park NV on 27 November 2002 by which Q-Park NV was granted the right to exploit a number of Car Parks for a period of thirty years. The Municipality of Maastricht and Q-Park NV entered into this agreement (...)

The Spanish Supreme Court of the Basque Country clarifies the scope on the application of the special tax regime (Arbegui)
Hogan Lovells (Madrid)
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Allianz (Brussels)
Factual Background: Appeal by a company located in Vizcaya (the "Company") against a judgement by the Economic-Administrative Court of Vizcaya dated 18 September 2006 confirming the refusal of the Company’s tax settlement by the Regional Tax Office of Vizcaya ("RTOB") due to an illegal tax (...)

The Spanish Supreme Court declares that an aid scheme may not be suspended if a final decision on the illegality of such aid scheme has not been issued (Regional Administration of Vizcaya)
Hogan Lovells (Madrid)
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Allianz (Brussels)
Factual Background: Appeal by the Regional Administration of Vizcaya and the Chamber of Trade, Industry and Sailing of Bilbao (the "Appellants") against two writs of the Superior Court of Justice of the Basque Country temporarily suspending the regional Decree of Vizcaya 10/2006 on (...)

The Italian State Council annuls a Ministerial Decree providing annual contributions in favour of traders on the grounds that it constitutes unlawful State aid, non notified, and for which the EU Commission opened a formal investigation procedure (Federchimica / Confagricoltura / Compag)
EUJUS (Rome)
Factual background Article 123, paragraph 1, letter a) of Law No. 388/2000 (Italian Budget Law 2001) imposed - inter alia - on all traders of fertilisers the obligation to pay, starting from 2001, an annual contribution equal to 2% of their revenues. Such contribution was intended to finance (...)

The Swedish Administrative Court in Stockholm rules that the sale of a local care centre to a private company is in line with national State aid legislation (Dag Larsson)
Djungo (Stockholm)
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General Court of the European Union (Luxembourg)
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Öberg & Associés (Stockholm)
Factual Background On December 19, 2007, the Stockholm County Council (”Landstingsstyrelsen”) decided that a transfer of public activities to staff of the municipality (so-called “avknoppningar”), within particular areas, should be allowed. In line with this decision, the County of Stockholm (...)

The Finnish Administrative Court holds that alleged State aid measures falls within the "municipal sphere of authority" (Kiinteistö Oy Säästöloma)
Dittmar & Indrenius (Helsinki)
Factual Background A number of companies operating in the hotel and accommodation business had contested the decision of Nurmes City Council, whereby it had decided on various measures in order to promote tourism and employment in that area. The City Council had, amongst other things, (...)

The German Financial Court of Hamburg holds it is seriously doubtful whether the duty for national courts under Community law to recover unlawful State aid shall supersede the national procedural laws on prescription (Mineralölsteuer 2)
European Commission
Brief description of the facts and legal issues The Hamburg Financial Court holds it is seriously doubtful whether the duty for national courts under Community law to recover unlawful State aid shall supersede the national procedural laws on prescription (Mineralölsteuer 2) Parties: The (...)

A German Administrative Court decides that if an aid measure infringes, EU law cannot automatically be challenged for recovery, and then the infringement justifies the suspension of any further payment of that aid to the beneficiary (Betriebsstätte des Tourismusgewerbes)
Delegation of the European Union to the United States (Washington D.C.)
,
European Commission
Brief description of the facts and legal issues The Potsdam Administrative Court holds that, if an aid measure that is found to formally infringe EC law cannot automatically be challenged for recovery, the infringement justifies the suspension of any further payment of that aid to the (...)

The Slovakian Constitutional Court issues a formal decision where it rejects a complaint for the review of the Ministry of Economy’s decision on refusal to grant State aid based on the act on investment incentives (X / Ministry of Economy)
Nedelka Kubáč advokáti (Bratislava)
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Ružička Csekes (Bratislava)
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Ružička Csekes (Bratislava)
Factual background: The applicant in December 2006 submitted to the Ministry of Economy request for the provision of state aid for a financing of the investment project “Construction of the new production plant for the production of specially patented steel-girders for the construction (...)

The Dutch Court of Appeal rules that an objective justification under the State aid rules does exist for tax measures that are of a purely technical nature (Ryanair / Maastricht Aachen Airport)
Adyen (Amsterdam)
Factual Background With effect from 1 July 2008, the Dutch Government introduced a new tax law levying a EUR 45 flight tax for all passengers on board flights departing from the Netherlands for destinations outside the European Union, and EUR 11.50 for destinations within the European Union. (...)

The French Administrative Court of Bordeaux rejects the State aid law pleas invoked by an unsuccessful bidder in a public tender won by a regional public body, ruling that Art. 87 EC is not directly effective (Merceron)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual Background This case is an appeal lodged against a judgment at first instance in which the claimant saw its request dismissed. It claimed the annulment of a local authority (city) decision confirming a concession contract for the dredging of the port of a commune. The contract was (...)

The Dutch Court of Appeals for The Hague upholds the first instance ruling that annulling the State loan guarantee was the correct method to recover that form of State aid and doing so would not impede the EU Commission in assessing the aid (Residex)
Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
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Freshfields Bruckhaus Deringer (Amsterdam)
For the facts of the case, please refer to the case summary of the judgment from the Court of Rotterdam of 24 January 2007 (Residex v Municipality of Rotterdam) ECLI:NL:RBROT:2007:AZ6904. On appeal, Residex argued that the Court of Rotterdam erroneously designated RDM Aerospace as (...)

The Spanish Administrative Legal Organ of Alava allows the deferment and break up of a State aid recovery payment (Local Administration of Alava)
Hogan Lovells (Madrid)
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Allianz (Brussels)
Brief description of the facts and legal issues: Appeal before the Administrative Legal Organ of Alava (the "ALOA") by a company against a decision of the Local Administration of Alava ("LAA") refusing the deferment and break up of the recovery of a State aid and requiring the immediate (...)

The Brescia Court of First Instance rules that the company beneficiary of State aid has to carry out a previous due diligence process to determine the compatibility with the criteria of a block exemption regulation (Brandt Italia)
EUJUS (Rome)
Factual background Brandt Italia S.p.A. objected to two different tax bills and summoned INPS-SCCI and the company responsible for the tax collection to the Court of first instance of Brescia. The related proceedings were joined and consequently the Court took a single decision. Brandt (...)

The Spanish Supreme Court confirms that State aid should be considered as company debt payable to the Central Government and autorised the recovery (Mediterráneo Técnica Textil)
Hogan Lovells (Madrid)
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Allianz (Brussels)
Factual Background: Appeal by the Central Government against a judgement given by the Regional Audience of Seville (the "Judgement") refusing its right to recover a State aid which had previously been declared illegal and incompatible with the Common Market by the European Commission. The (...)

The Bordeaux Court of Appeal rejects the plea of the appellant based on the violation of State aid finding that the contract of public service could include clauses allowing the compensation for the provision of the public service to be actualised or revised (Syndicat mixte de transports en commun de l’agglomération de Bayonne)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual Background The syndicate seeks the annulment of the judgment of the administrative court of Pau (first instance) in which the applicant had obtained the annulment of a decision of the city of Bayonne granting a concession to an undertaking for the operation of public transport. The (...)

The Austrian Constitutional Court rules that the beneficiaries of unlawful State aid cannot rely on a legitimate expectations to resist the recovery (ÖkostromG)
University of Vienna
,
Peter Thyri Competition Counseling Research (Vienna)
Factual Background The judgment concerns a review of the constitutionality of the Austrian Ökostromgesetz of 2002 (ÖkostromG) in an appeal over reimbursement of additional cost for CHP electricity production provided for in that law. Reimbursement is subject to a number of criteria under the (...)

The French Court of Appeal for Basse-Terre holds that third parties cannot request a national court to statute on the alleged incompatibility of a State aid measure but confirms national courts’ jurisdiction for claims for damages (Primistères Reynoird)
Sheppard Mullin (Brussels)
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European Court of Justice (Luxembourg)
Factual Background The society Primistères Reynoird imports goods from the continental part of France and other Member States of the European Union to Guyana and paid the levies in relation to the dock dues and an additional tax for the period between 1 October 1991 and 31 December 1992. (...)

The Dutch State Council considers the preferential treatment of a company, which exploits an airport by the construction of the enlargement of the airport, to be illegal State aid (Municipality of Haren)
Adyen (Amsterdam)
Factual Background In 2001 the Minister of Transport and Water Management amended the decree pursuant to which the airport in Eelde was designated an airport. The amendments concern the length of the runway and the maximum noise pollution. As a result of the changes bigger airplanes were (...)

The Austrian Supreme Court rules that an advantage is qualified as an existing State aid measure under a Art. 87 EC would be considered permissible as long as the EU Commission agreed (Newspaper cross-financing / Wiener Zeitung II)
Salzburg University
On 10 June, 2008, the Austrian Supreme Court ruled that the view according to which an advantage that may qualify as an existing state aid measure under Article 87 EC may be considered permissible as long as the Commission has not declared this advantage as being incompatible with the Common (...)

The Austrian Supreme Court rules that a system of official inserts in a newspaper is not subject to prohibition of implementation and does not violate the national act against unfair competition (Die Presse)
University of Vienna
,
Peter Thyri Competition Counseling Research (Vienna)
Factual Background “Die Presse” is a privately held Austrian daily newspaper. “Wiener Zeitung” (WZ), a private company owned by the Austrian Government, is a daily newspaper with an official insert used by the Austrian Government to publish formal announcements such as newly passed laws, (...)

The Finnish Supreme Administrative Court upholds the Administrative Court’s decision and rules that a small-scale activity does not affect the competition circumstances to the extent that it could be regarded as constituting State aid (Ylä-Savo Board)
Dittmar & Indrenius (Helsinki)
Factual Background The applicants were private entrepreneurs operating a driving school business in Eastern Finland. As a result of an amendment of the Decree on Driving Licenses (Ajokorttiasetus, statute number 433/1996), driving instruction for heavy articulated vehicles and buses required (...)

The Dutch Court of Appeal rules that granting GSM frequencies to two mobile operators for no consideration is not a form of unlawful State aid (Orange Nederland)
Adyen (Amsterdam)
Factual Background On 1 September 1994, the Dutch Act on Telecommunication Services (Wet op de Telecommunicatievoorzieningen) came into force, implementing Directive 87/372/EEC of 25 June 1987. On the basis of this Directive, all Member States agreed to allocate frequencies to (digital) (...)

The Danish Competition Authority finds that a municipality had not paid a settlement price to the private caterer which was lower than the costs of the competing municipal service provider (Vordingborg Kommunes)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background A private caterer complained to the Danish Competition Authority (DCA) about the municipality of Vordingborg paying too low a price for its services in 2005 and 2006. The complainant also argued that the municipality’s cost calculation methods were not transparent. (...)

The Schleswig-Holstein Higher Regional Court quashes a lower regional court’s decision and rejects an air carrier claims on the grounds of inadmissibility and on the merits (Ryanair 2)
European Commission
Factual background The Higher Regional Court had to deal with the appeal against the “Ryanair 1” decision of the Kiel Regional Court of 27 July 2006 (see Kiel District Court of 27 July 2006, Landgericht Kiel 1 (Kammer für Handelssachen), 14 O Kart. 176/04, “Ryanair 1”). In its appeal the (...)

The French State Council finds that a parafiscal tax imposed in the sector of pork meat production should not have been notified as a State aid (Coopérative Cooperl Hunaudaye / Federation Syndigel)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background The appellant is a group of pork producers also active in the field of slaughtering, cutting and pork meat processing. The undertaking, supported by Syndigel, which is a syndicate of wholesalers, seeks the annulment of an administrative decision of the Ministers of economy (...)

The Spanish Superior Court of Catalonia confirms an aid scheme applicable to an employment project (Department de Treball I Industria)
Hogan Lovells (Madrid)
,
Allianz (Brussels)
Factual Background: Appeal by the Association Taula D’Entitats del Tercer Sector Social de Catalunya (the "Association") against Regional Decree 81/2005 of Catalonia ("Decree 81/2005") on State aids for the creation of employment in new economic sectors. Decree 81/2005 excluded non-profit (...)

The Belgian State Council rules that there is no need for the procuring entity of a public tender procedure to inquire about the legality of an underlying State aid (NV Dimarso / National Bank of Belgium)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background This case concerns a public tender procedure in which VZW Merlijn Marketeer (“VZW”) was awarded the assignment to investigate the existing customer relations of the National Bank of Belgium (“Bank”). VWZ’s offer was the most economical, in that it was the lowest price of (...)

A Slovakian Regional Court rules that the debt write-off under the arrangement with creditors does not constitute State aid (Frucona)
Nedelka Kubáč advokáti (Bratislava)
,
Ružička Csekes (Bratislava)
,
Ružička Csekes (Bratislava)
Factual background: The defendant is a company active in production of beverages which was granted a debt write - off based on the concluded “arrangement with creditors” under the Act on Bankruptcy (Act No. 328/1991 Coll. on Bankruptcy and Arrangement with Creditors). “Arrangement with (...)

The Lithuanian Supreme Administrative Court rejects the applicant’s claims without examining the issue under State aid rules and rules that the Ministry of Agriculture’s actions could not engage its liability (Arvi Cukrus UAB)
Cobalt Legal (Vilnius)
,
Valiunas Ellex (Vilnius)
Factual background Pursuant to the order of the Minister of Agriculture No 412 “Concerning the Export of White Sugar” dated 21 October 2002, sugar manufacturers were subject to mandatory export quotas of white sugar. According to the applicant, the export price of the compulsory quota was (...)

The Italian Constitutional Court rules that national courts may use preliminary ruling tool to obtain clarification from the Court of Justice on the notion of state aid
Maastricht University (Maastricht)
,
BonelliErede (Brussels)
,
BonelliErede (Brussels)
On 15 April 2008, the Italian Constitutional Court delivered Decision No. 102 regarding the action brought by the Italian Prime Minister’s Office (Presidenza del Consiglio dei Ministri) claiming that certain provisions of Sardinian Regional Law No. 4 of 11 May 2006 were unconstitutional. (...)

The Italian Constitutional Court holds that a regional tax provision could potentially impose a selective tax burden on non-resident undertakings and constitute unlawful State aid for undertakings domiciled in the region (Regione Sardegna)
EUJUS (Rome)
Factual background The President of the Council of Ministers (“PCM”) sought a declaration of unconstitutionality in respect of certain provisions contained in Law No. 4 of the Region of Sardinia of 11 May 2006, (Miscellaneous provisions on revenue, reclassification of costs, social policy (...)

The French Court of Appeal for Douai rejects a tax payer’s claim which contest a tax adjustment and the sums reintegration perceived in the context of the "Borotra plan", on the ground that there was no uncertainty concerning the repayment of the unlawful aid (Blanchisserie industrielle du marais)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background The appellant seeks the annulment of the judgment of the administrative tribunal of Amiens dated 16 November 2006 in which the undertaking’s claim for repayment of additional taxes paid on societies and VAT was rejected. The appellant is active in the field of washing, (...)

The French Administrative Court of Nancy annuls a judgment which declared the admissibility of a repayment order for the tax on advertisement expenses constituting unlawful State aid (Fagnières / Pierrydis / Chamdis / Sodichamp / Eperdis)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background In this case, the Minister of Economy and Finances seeks the annulment of the administrative tribunal of first instance decision allowing the defendants restitution of the payment of taxes on advertising expenses paid for the year 2002. Between the judgment of the first (...)

The Belgian Constitutional Court dismisses a State aid claim filed by economic operators seeking the annulment of a law imposing reusable packages more heavily than "one way" packages (Fédération royale de l’industrie des Eaux et boissons rafraichissantes)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual background The Fédération royale de l’industrie des Eaux et boissons rafraichissantes (the “Federation”) sought the annulment of a law of March 2007. The Federation alleged that the law constituted State aid, even if the measure pursues the legitimate objective of protection of (...)

The Italian Tax Commission of Modena holds, pursuant to an EU Commission decision, that the tax exemption in favor of public utilities with a majority public capital holding constitutes unlawful State aid
EUJUS (Rome)
The Tax Commission recalled the Commission Decision 2003/193/EC concerning alleged State aid granted by Italy in the form of tax exemptions and access to subsidised loans to various public utilities. With regard to the national legal background the Commission pointed out that in Italy (...)

The Italian Constitutional Court dismisses State aid claim on the grounds that the provisions of measures to fight tax evasion are not selective and cannot be qualified as State aid (Regione Toscana / Emilia Romagna / Sicilia / Piemonte / Campania)
EUJUS (Rome)
Factual background In five separate applications, Tuscany, Sicily, Piedmont, Campania and Emilia-Romagna Regions (“the Regions”) questioned the constitutionality of certain Articles of Law No. 203 of 30 September 2005, converted into law, with amendments, by Law No. 248 of 2 December 2005 (...)

The Spanish Supreme Court annuls the Canary Islands aid scheme for the creation of a public service of maritime cabotage for being discriminative (Garajonay Expres)
Hogan Lovells (Madrid)
,
Allianz (Brussels)
Brief description of the facts and legal issues: Appeal before the Supreme Court by the Government of the Canary Islands and an individual (the “Appellants”) against a judgement of the Superior Court of Justice of the Canary Islands (the “Court”) declaring the scheme of aids for the creation (...)

The Italian Court of First Instance of Reggio Calabria refers to a preliminary ruling on the conformity with a constitutional law which sets up a different statute of limitation for the recovery of contributions constituting unlawful aid with respect to internal rules (M.C.T. / INPS / Equitalia)
EUJUS (Rome)
Factual background The applicant was a company which had benefited from pension contribution breaks with respect to work and formation contracts (i.e. CFL, contratti di formazione e lavoro) between 1995 and 2001. The European Commission, through Decision No. 128/2000 of 11 May 1999, (...)

The Romanian Competition Authority approves a regional State aid scheme to support investments made by small and medium-size companies
European Security Transport Association (ESTA)
The Romanian Competition Council has approved, on 1st February 2008, a regional state-aid scheme designed to promote the investments made by small and medium-sized economic actors in certain economic-development related activities. The scheme, which should come into force immediately, will be (...)

A Dutch Court of Appeals annuls the Competition’s Authority decision on the application of competition rules in the sphere of State aid (Blovo)
Urgenda (Basel)
Introduction In this case the Trade and Industry Appeals Tribunal of the Netherlands (Tribunal) made a principal judgement on the application of competition rules to behaviour that could be regarded as granting of State Aid. The Tribunal decided that qualification of behaviour as granting of (...)

The Spanish Supreme Court confirms the annulment of a provision which had not been included in the notification of a State aid scheme to the EU Commission (Eólica Navarra)
Hogan Lovells (Madrid)
,
Allianz (Brussels)
Factual Background: Appeal by the Government of Navarra against the judgement of the Superior Court of Justice of Navarra of 7 February 2005 (the "Appealed Judgment") annulling a provision of the regional Decree of Navarra 91/2003 on aids to investment and employment in projects of use of (...)

The French Supreme Administrative Court rules that the variations in the contributions paid by users of public service do not constitute a modification of a State aid scheme approved by the EU Commission (Federation nationale)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background The appellant seeks the annulment of a decree relating to the calculation and the rate of a tax on slaughtering. The tax is instituted in application of a provision of the General Tax code (Article 302 bis ZD) is applied to slaughterhouse and is designed to finance the (...)

The Italian Court of First Instance of Rome confirms the recovery of an unlawful aid and holds that the statute of limitation set forth is also applicable to the recovery sought by national public bodies (Ericsson Telecomunicazioni)
EUJUS (Rome)
Factual background The applicant was a major company in the telecommunications sector, and had benefited from pension contribution breaks with respect to work and formation contracts (i.e. CFL, contratti di formazione e lavoro) between 1995 and 2001. The European Commission, through (...)

The Dutch Council of State agrees with the District Court of Maastricht that the Housing Minister cannot block a development in Belgium by a national housebuilder on the grounds that there is illegal State aid if there is no special benefit conferred on the entity which amounts to aid from the State (Woningstichting Sint Servatius)
Freshfields Bruckhaus Deringer (Amsterdam)
,
Freshfields Bruckhaus Deringer (Amsterdam)
,
Freshfields Bruckhaus Deringer (Amsterdam)
Woningstichting Sint Servatius (Servatius), an approved institution within the meaning of the relevant Dutch housing laws, had applied for an authorisation from the Dutch Minister of Minister of Housing, Spatial Planning and Environment (the Minister) to invest in a planned, cross-border (...)

The French Administrative Court of Appeal of Marseille dismisses the appeal of taxpayers claiming the refund of the tax on meat purchases judging an absence of hypothecation of the levy to aid measure (Panama / Fauger / Maurevar / Faremy / Montaudis / Cannecar ...)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background The appellants seek the annulment of the administrative tribunal of Nice decision rejecting its demand for tax paid on meat purchases. The tribunal had judged that considering that the tax had been integrated in the general budget of the State, it was not obliged to rule (...)

The Cyprus Commissioner for State Aid Control authorises a draft aid scheme for the provision of aid to farmers affected by the outbreak of foot-and-mouth disease (Aid to livestock farmers)
Queen Mary University of London
Factual Background On 15 November 2007 the Department of Agriculture of the Ministry of Agriculture, Natural Resources and Environment notified to the Cyprus Commissioner for State Aid Control a draft aid measure, entitled “indemnity/aid to livestock farmers due to foot-and-mouth disease”. (...)

The French Administrative Court of Appeal of Marseille dismisses the appeal of tax payers claiming the refund of the tax on meat purchases judging an absence of hypothecation of the levy to aid measure
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background The appellants seek the annulment of the judgement of the tribunal of first instance in which the tribunal rejected the repayment of taxes paid on meat purchases for the period 2001 to 2003 and 2001 to 2002. Summary of the Court’s findings The court adopts the same (...)

The French Administrative Court of Appeal of Paris dismisses the appeal of tax payers claiming the refund of the tax on meat purchases judging an absence of hypothecation of the levy to aid measure
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background The appellants seek the annulment of an order of the tribunal of first instance in which the tribunal rejected the repayment of taxes paid on meat purchases, instituted by Article 302 bis ZD of the general tax code, for which it was subject for the period 2001 to 2003 for (...)

The Cyprus Commissioner for State Aid Control authorises the amendment of the national legislation concerning aid towards the payment of agricultural insurance premiums, finding that it complies with EC Reg. N°1857/2006 (Aid towards the payment of insurance premiums)
Queen Mary University of London
Factual Background In 1977 Cyprus introduced specific legislation, setting up the legal framework concerning the system of compulsory agricultural insurance and the granting of State aid through the subsidization of the insurance premium. Given that this legislation had been enacted before (...)

The Italian Regional Administrative Court of Piedmont holds that the decisions of local authorities to confer the management of the service without any invitation to tender do not breach State aid rules if specific conditions are met (Municipality of San Mauro Torinese)
EUJUS (Rome)
Factual background The applicant was a municipality located in the Region of Piedmont. Pursuant to Regional Law No. 24/2002, providing that the waste disposal service shall be managed by means of compulsory consortia managed by Municipalities, the applicant joined the Consorzio di Bacino (...)

The Portuguese Supreme Administrative Court receives a preliminary ruling from the EU Court of Justice on State aid case in the public transport field after asking the Court whether the grant by a Member State of compensation payments to transport undertakings holding a public service concession constitutes State aid (Antrop)
New University of Lisboa - Faculty of Law
,
University of Coimbra - Faculty of Law
Brief description of the facts and legal issues Parties: The applicant: Associação Nacional de Transportadores Rodoviários de Pesados de Passageiros (hereinafter referred to as "Antrop") and Others; The defendant: Conselho de Ministros, Companhia Carris de Ferro de Lisboa SA ("Carris"), (...)

The Hellenic State Council rejects allegations that a misestimation of costs in a public tender amounted to State aid to the winning bidder (Bus Operator)
Queen Mary University of London
Facts On 21.07.2005, the prefectural committee for education and youth of the prefectural administration of Serres (Serres being a prefecture in the north of Greece and in particular in the geographical region of Macedonia) adopted a decision, authorizing the terms of an open public tender (...)

The Danish Competition Authority orders municipalities to re-calculate and adjust the settlement prices in relation to municipal services (Fritvalgspriser på ældreområdet)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background The Danish Competition Authority (DCA) has received a number of complaints from private companies which provide eldercare services to the Danish municipalities. The complaints concern in particular the fact that the prices paid by the municipalities (the “settlement (...)

The Romanian Competition Authority approves a regional State aid scheme aimed to support environmentally friendly investments
European Security Transport Association (ESTA)
The Romanian Competition Council (the “Council”) has approved an investment scheme targeted at granting regional state aids for the promotion of clean, environmental friendly, technologies and for the production of energy using renewable resources. The Council has informed the European (...)

The Dutch District Court holds that the reimbursement of stranded costs qualified by the EU Commission as State Aid is included in the scope of an earlier positive Commission decision (Demkolec)
Adyen (Amsterdam)
Factual Background In 1989, four electricity producers decided to collaborate on a demonstration project for coal gasification. The company incorporated to implement the project was named Demkolec and was a subsidiary of N.V. SEP (SEP), which was jointly owned by the collaborating (...)

The French Administrative Court of Appeal of Lyon rules that a claim questioning the validity of an EU Commission’s decision not to raise objection against alleged State aid measures, raised serious difficulties requiring a preliminary ruling (Régie Networks)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background Régie Networks, an undertaking selling advertising space for the NRJ Group’s local radio stations, paid EUR 152 524 by way of parafiscal charge levied on advertisements broadcast on radio and television in 2001. It claimed reimbursement of that sum from the local tax (...)

The Dutch Court of Appeal qualifies guarantees issued by a port as a form of State aid that should have been notified to the EU Commission (Resiex Capital)
Adyen (Amsterdam)
Factual Background In August 2004, it appeared that the former director of the Port of Rotterdam - owned by the Municipality of Rotterdam - had agreed to authorize a number of bank loan guarantees to a total amount of approximately EUR 100 million. The director of the Port of Rotterdam had (...)

The Cyprus Commissioner for State Aid Control authorises an aid scheme for postgraduate programme finding that it falls within EU Regulations (Mediterranean Institute of Management)
Queen Mary University of London
Factual Background On 19 June 2007 the Human Resource Development Authority of Cyprus (HRDA) notified to the Commissioner for State Aid Control a draft aid measure, entitled “aid scheme for the participation in the postgraduate programme of the Mediterranean Institute of Management (MIM)”. (...)

The German Federal Court of Justice holds that the presence of State aid elements in the debtor’s capital does not prevent a creditor from challenging a national insolvency procedure (German insolvency procedure)
European Commission
Factual background The applicant is a liquidator in insolvency proceedings concerning L. GmbH (the debtor, later renamed C. GmbH). The defendant is a publicly-owned bank which focuses on encouraging investment in Thuringia. The debtor was a company manufacturing compact discs in Thuringia (...)

The German Federal Court of Justice clarifies that State aid law supersedes German bankruptcy law (SKL)
Eversheds Sutherland (Düsseldorf)
Background From 1997 to 2000, BVT Industrie-Beteiligungsgesellschaft Magdeburg mbH(“BVT”), a company ultimately controlled by the German government, granted several loans to SKL Motoren und Systembautechnik GmbH (“SKL”), a company that developed and manufactured engines for ships and the (...)

A Slovakian Regional Court rules on the central office on employment failure to issue formal decisions on its refusal to grant de minimis State aid (Emil Krajèík)
Nedelka Kubáč advokáti (Bratislava)
,
Ružička Csekes (Bratislava)
,
Ružička Csekes (Bratislava)
The Regional Court ruled that the Central Office on Employment as well as regional employment offices breached rules on administrative proceedings by omitting to issue formal decisions on refusal to grant the de minimis state aid and incorrectly assessed criteria for provision of de minimis (...)

The French Administrative Court of Appeal of Lyon rules that trade chambers are not undertakings and rejects the claim of a claimant alleging that a tax for the expenses of these chambers amounts to unlawful State aid (Bellerivedis)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background The society seeks the annulment the administrative tribunal of Clermont-Ferrand judgment rejecting its claims for reimbursement of a tax on the expenses of the trade chambers (from 1991 to 2002). The disputed tax is instituted by a provision of the general tax code and (...)

The French Supreme Court rules that national courts have an obligation to take all the necessary measures when national procedural rules are not sufficiently favorable for a claimant wishing to demonstrate the existence of overcompensation for public service obligations (Laboratoires Boiron)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background The company Laboratoires Boiron appeals the judgment of the Court of appeal of Lyon in litigation concerning a provision of the French Code de la santé publique (Public Health Code). The appellants which is a pharmaceutical laboratory specialising in homeopathic medicines (...)

The Sardinia Administrative Court holds that when the EU Commission declares an aid to be incompatible, the unlawful aid should be recovered even though the national law that provided for the measure has not been repealed (Sardinia Lines)
EUJUS (Rome)
Factual background The applicant was a company active in the sector of water transport. On 22 July 1992 Credito Industriale Sardo S.p.A. (C.S.I.), one of the major banks of Sardinia, granted the applicant an subsidised loan under Regional Law no. 20/1951. However, the European (...)

The Hamburg Higher Administrative Court finds that the existence of ongoing proceedings led by the EU Commission prohibits access to documents covered by the Hamburg Freedom of Information Act (Pflegen und Wohnen Betriebs)
Delegation of the European Union to the United States (Washington D.C.)
,
European Commission
Brief description of the facts and legal issues The Hamburg Administrative Court of Appeal holds that documents on ongoing proceedings do not fall within the scope of the Hamburg Freedom of Information Act setting the law on access to file. The existence of ongoing proceedings before the (...)

The Stockholm County Administrative Court rules on alleged illegal State aid from the City of Stockholm to promote local broadband infrastructure (Thomas Svensson)
Djungo (Stockholm)
,
Hudson Advisors (London)
Introduction There are no specific rules with regard to state aid in Sweden and the number of cases brought before a Swedish court are few. This, of course, causes a certain amount of unpredictability and uncertainty as regards the application of the EC state aid rules in the national legal (...)

Aviation sector: The German Regional Court holds that Art. 88.3 EC does not confer any specific protection to a competitor and does not entitle the latter to challenge the award of State aid and that the payment of so-called marketing support from an airport operator to an airline company does not constitute an unlawful act to the detriment of a competitor (Ryanair 3)
European Commission
Factual background The defendant manages the airport of Frankfurt-Hahn. Ryanair is the most important airline flying to and from Frankfurt-Hahn airport, using this airport as its European continental basis. The defendant is 65% owned by a publicly listed company; the Federal States Hesse and (...)

Aviation sector: The German Regional Court refuses to order recovery of unlawful State aid granted by Frankfurt airport to a low cost carrier (Ryanair / Lufthansa)
Eversheds Sutherland (Düsseldorf)
Background The low-cost carrier Ryanair and alleged State aid granted to Ryanair continue to keep the European Commission and Member State courts in terms of State aid law busy. The most recent example is a decision by the Landgericht Bad Kreuznach. The facts The defendant operates the (...)

The Cyprus Commissioner for State aid control authorizes several aid schemes for the provision of training aid having concluded that they fall within EU Regulation (Training programmes)
Queen Mary University of London
Factual Background Decision No. 267: On 27.03.2007 the Human Resource Development Authority of Cyprus (HRDA) notified a draft aid scheme entitled “multi-company continuing training programmes abroad” to the Commissioner for State Aid Control. The aid measure aims to encourage employers and (...)

The Spanish National Audience confirms the incompatibility between different types of national regional aid to agriculture (Grupo Kalise Menorquina)
Hogan Lovells (Madrid)
,
Allianz (Brussels)
Brief description of the facts and legal issues: A company brought an appeal before the National Audience against a decision of the Ministry of Economy refusing the granting of a State aid for regional incentives. The Ministry of Economy’s refusal was based on the fact that the appellant’s (...)

The Lithuanian Supreme Administrative Court holds that an exclusive operator has not been granted any advantage within the meaning of State aid provisions when operating beyond the boundaries of the secure network and rules (TEO LT / Omnitel / Bite Lietuva)
Cobalt Legal (Vilnius)
,
Valiunas Ellex (Vilnius)
Factual background Pursuant to the order of the Minister of Internal Affairs No 1V-167 dated 14 May 2004, the public undertaking Infostruktura was authorised to act as the exclusive operator of the secure data transmission network in Lithuania. Consequently, providers of similar electronic (...)

The Swedish District Court embraces its role as EU State aid law enforcer (Skyways Express / Kristianstad Airport)
General Court of the European Union (Luxembourg)
,
SNP Schlawien (Munich)
Introduction This case is interesting as it is one of the few state aid cases that has been brought before a Swedish court. Although, there will be no final judgment on the case it represents a positive development in the application of EC law at national level, in particular, since the (...)

The Finnish Ministry of Employment and the Economy requests recovery of unlawful aid incompatible with the Common Market (Componenta Oyj)
Dittmar & Indrenius (Helsinki)
The Court of First Instance annulled on 18 December 2008 the Commission’s decision finding an implementation of an unlawful State aid in the matter. The case is currently pending before the Administrative Court of Helsinki. Factual Background In December 2003, Componenta Oyj, a producer of (...)

A Dutch District Court considers that granting radio frequencies to a public radio broadcasting company for no consideration is not a form of unlawful State aid (Vereniging)
Adyen (Amsterdam)
Factual Background In January 2003 the Minister of Economic Affairs granted four local public service broadcasting organisations (together named: "G4 Radio/FunX") a license to broadcast on the radio frequency bands 96.1 and 98.4 Mhz. Normally, broadcasting organisations obtain these licenses (...)

The Cyprus Commissioner for State aid control authorises an aid scheme aimed at the collection and processing of animal waste by a private undertaking finding that it falls within EU Regulations (Sigan Management)
Queen Mary University of London
Factual Background On 05.02.2007, the Ministry of Agriculture, Natural Resources and Environment veterinary services notified to the Cyprus Commissioner for State Aid Control a draft aid scheme, entitled “scheme for the collection, transport and processing of animal waste by the company (...)

The Spanish National Audience authorises partial recovery of training aid whose use had not been justified by way of receipts by the beneficiary (Finafor / S.L.)
Hogan Lovells (Madrid)
,
Allianz (Brussels)
Factual Background: The National Institute of Employment ("NIE") granted a State aid to a company (the “Beneficiary”), which committed itself to the implementation of a training plan (the "Training Plan"). The State Aid was paid in advance and following that payment, the NIE found out that (...)

The Danish Competition Authority finds that the municipality of Gentofte had not paid a settlement price to the private caterer which was lower than the costs of the competing municipal service provider (Fritvalg / Gentofte Kommune)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background A private company complained to the Danish Competition Authority (DCA) about the municipality of Gentofte paying too low a price for the services provided by private companies in the field of home care. In particular, the complainant did not understand why the prices had (...)

The Rotterdam District Court declares nul and void public loan guarantees holding that they constitute State aid that should have been notified to the EC (Port of Rotterdam)
Visser, Schaap & Kreijger (Amsterdam)
In two recent decisions, the Rotterdam District Court held that loan guarantees issued by the Port of Rotterdam (part of the municipality of Rotterdam) were null under the Dutch Civil Code provisions on nullity, as the guarantees were state aid that should have been notified. Background In (...)

The Dutch District Court of Rotterdam nullifies a loan guarantee to a financial services firm which lent money to a aerospace company for breaching the standstill obligation under EU State aid law (Residex)
Freshfields Bruckhaus Deringer (Amsterdam)
,
Freshfields Bruckhaus Deringer (Amsterdam)
,
Freshfields Bruckhaus Deringer (Amsterdam)
In 2001, Residex Capital IV C.V. (Residex) acquired shares in MD Helicopters Holding N.V. (MDH), a subsidiary of RDM Aerospace N.V. (RDM Aerospace). As part of this transaction, Residex obtained an option to resell the shares in MDH to RDM Aerospace. Residex exercised this put option by letter (...)

The Dutch Court of Appeals for Amsterdam rejects an application contending that a telecommunications joint venture between a local authority and private entities constituted State aid because State involvement did not have a de-risking affect to a material degree (UCP)
Freshfields Bruckhaus Deringer (Amsterdam)
,
Freshfields Bruckhaus Deringer (Amsterdam)
,
Freshfields Bruckhaus Deringer (Amsterdam)
In 1995, UPC, a (former) provider of broadband, telephony, and television services in the Netherlands, acquired the Amsterdam cable network. In 2004, the Municipality of Amsterdam decided to install a fiber optic network (Citynet) in three layers. In the same year, the Municipality started the (...)

The Danish Competition Authority finds that a municipality had incorrectly calculated the costs of the municipal service provider and orders the municipality re-calculated the latter’s costs, taking into account the guidance issued by the Competition Authority (Fritvalg - Ølstykke Kommune)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background A private company complained to the Danish Competition Authority (DCA) about the municipality of Ølstykke paying too low a price for the services provided by private companies in the field of home care. More importantly, the municipality had failed to adjust its prices in (...)

The Cypriot Commissioner for State aid control authorises an aid scheme aimed at incentivising employers/businesses to organise and implement training programmes for their employees (Training programmes)
Queen Mary University of London
Factual Background On 16 November 2006 the Human Resource Development Authority of Cyprus notified to the Commissioner for State Aid Control a draft aid scheme, entitled “single-company continuing training Programmes in Cyprus”. The aid aims at incentivising employers/undertakings to (...)

The Danish Competition Authority finds that a municipality had wrongly calculated the costs of the municipal service provider in relation to home case services and orders the municipality to re-calculate the latter’s costs, taking into account its guidance (Praktisk hjælp / Hjørring Kommune)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background A private company complained to the Danish Competition Authority (DCA) about the municipality of Hjørring paying too low a price for the services provided by private companies in the field of home care. Summary of the Court’s findings The DCA stressed that under (...)

The Austrian Supreme Administrative Court, following an Article 267 reference, rules that tax rebates cannot be granted to an expanded class of beneficiaries solely because a State initially breached its standstill obligation
University of Vienna
Background & Facts of the case In 1996, the Energieabgabenvergütungsgesetz (Law on the rebate of energy taxes; the “EAVG”) was enacted. It provided that companies whose focus is on the production of goods could obtain a rebate on the energy taxes they paid. Companies that mainly offered (...)

The Bulgarian Competition Authority clears State aid in the form of compensation for public transportation services under national State aid rules (Elena Avtotransport)
Dessislava Fessenko (London)
By this Decision of 2 November 2006 the Bulgarian Commission for Protection of Competition (“the Commission”) cleared a State aid in the form of compensation for public transportation services, provided on the territory of Municipality of Elena, North-Eastern Bulgaria, by the transport (...)

The Greek Legal Council of State decides that the funding provided to a State institute by the Greek Ministry of National Defence does not constitute illegal State aid, as it merely covers the operating expenses of the Institute, whose activities are not economic (Defence Analyses Institute)
Queen Mary University of London
Factual Background: The District Audit Centre of Athens (Ðåñéöåñåéáêü Åëåãêôéêü ÊÝíôñï Áèçíþí), faced with an authorization of a refund of around €62.000 to the Defence Analyses Institute, which is a legal entity governed by private law, examined the application of the provisions on value (...)

The Danish Competition Authority decides on the existence of an unlawful aid in application of s. 11a Competition Act in relation to subsidies granted to an internet portal on the grounds that the commercial and non-commercial parts of the website were not sufficiently distinguished (Portal Fyn.dk)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background The internet portal was developed in 2003 with the purpose of promoting the island of Funen as an attractive place to live, work and visit. The portal contains all kinds of information of both commercial and non-commercial nature (ranging from information on education, (...)

The Danish Competition Authority finds that municipalities have wrongly calculated the costs of the municipal service provider in relation to home care services and ordered the re-calculation of those costs, taking into account its guidance (Fritvalg / Sindal Kommune)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background A private company complained to the Danish Competition Authority (DCA) about the municipalities of Sindal and Frederikshavn paying too low a price for the services provided by private companies in the field of home care. Summary of the Court’s findings The DCA stresses (...)

The Dutch District Court rules that a licensing scheme inspired by consumer protection and crime prevention constitutes an objective justification under the existing State aid rules (Stichting Nationale Sporttotalisator / Lotto)
Adyen (Amsterdam)
Factual Background In 2005, the complainant applied to the Minister of Justice for a licence to act as an intermediary in the marketing and distribution of lottery tickets in the Netherlands. This application was rejected by the Minister on the basis of the Dutch Act on Games of Chance (Wet (...)

The Cyprus Commissioner for State aid control authorises an individual aid measure for the subsidisation of a cattle breeding association finding that it falls within EC Reg. N° 1/2004 (Holstein-Friesian)
Queen Mary University of London
Factual Background On 21 August 2006 the Department of Agriculture of the Ministry of Agriculture, Natural Resources and Environment, notified to the Commissioner for State Aid Control a draft individual aid measure, entitled “aid scheme for the Holstein-Friesian cattle breeder Association”. (...)

The German District Court of Kiel finds that a low-cost airplane company received unlawful State aid (Ryanair)
Eversheds Sutherland (Düsseldorf)
Background The low-cost carrier Ryanair does not only offer cheap flights, but also keeps the European Commission and Member State courts in terms of State aid law busy. The most recent example is a decision by the Landgericht Kiel. The facts The defendant operates the airport of Lübeck, (...)

The Dutch Court of Appeals for Amsterdam rules that a company cannot be tortiously liable for receiving a benefit from the State which allegedly breach State aid rules, unless that benefit has been assessed by the EU Commission and is found to contravene the rules and the company goes on to accept the benefit regardless (Baby Dan / WeDeKa / De Risse)
Freshfields Bruckhaus Deringer (Amsterdam)
,
Freshfields Bruckhaus Deringer (Amsterdam)
,
Freshfields Bruckhaus Deringer (Amsterdam)
Baby Dan was a producer of stair gates who had a dispute with its competitor Bruca c.s. (consisting of the entities WeDeKa, De Risse, Bruca and Sluis Groep) concerning, among other things, an alleged copyright infringement of one of Baby Dan’s brand names and unfair competition from Bruca c.s. (...)

The Dutch Council of State rules that the transfer of the building site to a housing corporation for no consideration may constitute a form of State aid that should have been notified to the European Commission (Het Vergeten Dorp)
Adyen (Amsterdam)
Factual Background On 16 December 2004, the Municipality of The Hague approved a zoning plan in which the development of a large housing complex for, inter alia, 300 student housing units was approved. The construction of this housing complex required very substantial investments from the (...)

The Danish Competition Authority refuses to deal with a price fixing behaviour under State aid provisions of the Danish Competition Act (Virkninger af KMS’ prisfastsættelse)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background Public law provided that the National Survey and Cadastre (in Danish “Kort- og Matrikelstyrelsen” - hereafter “KMS”) could sell a number of different products - for example topographic maps and orthophotos - at prices which in the period 2000-2007, ranged from 44-70% of (...)

The High Court of Justice in Northern Ireland rules that the granting of planning permission does not engage Art. 87.1 EC since there is no transfer, relinquishment or depletion of State resources (Bow Street Mall)
UK Competition & Markets Authority - CMA (London)
An application for judicial review challenging a planning decision made by the Department of the Environment. In relation to the State aid issues raised the Court held that the grant of planning permission did not engage article 87(1) EC since there was no transfer, relinquishment or depletion (...)

The Danish Competition Authority finds that a municipality has incorrectly calculated the costs incurred by a municipal service provider and concludes to the existence of State aid (Fritvalg - Frederikssund Kommune)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Brief description of the facts and legal issues The Danish Competition Authority (DCA) found that a Danish municipality had fixed its prices for home care below the actual cost level. Thereby, the municipal service provider was found to be in receipt of State aid falling under the Danish (...)

The Cypriot Commissioner for State aid control authorises a research and development cooperation programme finding that it falls within EC Reg. N° 70/2001 (Joint Cooperation Programme)
Queen Mary University of London
Factual Background On 18 April 2006 the Research Promotion Foundation notified to the Commissioner for State aid control a draft aid scheme, entitled “Joint Cooperation Programme between Cyprus and Greece”. The general objective of the Programme is the promotion of cooperation and (...)

The French Administrative Supreme Court confirms that subsidies granted for orders of French-language books are State aid, but refers for a preliminary ruling a question concerning the extent of the recovery of unnotified aid (CELF I)
Schmitt Avocats (Paris)
By a decision of 5 October 2004, the Administrative Court of Appeal of Paris classified as a State aid the subsidies granted by the French State to the Centre d’Exportation du Livre Français (“CELF”), entity created at the end of the 70’s to contribute to the diffusion of French-language books (...)

The Austrian Supreme Administrative Court rules that a hypothecated tax to provide marketing for quality and organic labels would not constitute unlawful State aid because the tax revenue was to be used for purposes that were sufficiently broad so as to not invoke the standstill obligation
University of Vienna
Background & Facts of the case The judgment concerned an appeal by a producer of agricultural products against the imposition by AMA (Agrarmarkt Austria, a legal person under public law) of agricultural marketing contributions. The applicant argued that its contribution financed (...)

The French Administrative Supreme Court upholds the annulment of a decision by the Commercial Court of Strasbourg finding that the support measures granted to a low-cost airplane company constituted unlawful State aid in the application of the private investor test (Ryanair)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background The claimant, a low cost airline established in Ireland, sought the annulment of the deliberation of the chamber of commerce of Strasbourg and the decisions of its president to sign, in execution of this deliberation, two agreements (principal agreement and supplemental (...)

The Paris Administrative Court condemned the French State for the anticipated implementation of State aid in breach of Art. 88.3 EC (Salmon Arc-en-Ciel)
Schmitt Avocats (Paris)
By a decision of 23 January 2006, the Administrative Court of Appeal of Paris condemned the French State for having implemented a measure classified as State aid before the European Commission completes its examination procedure of the compatibility of the measure with the Common Market, in (...)

The French Administrative Court of Appeal of Paris rejects a claim for damages brought by the beneficiary of an unlawful State aid (Salmon Arc-en-Ciel)
Sheppard Mullin (Brussels)
,
European Court of Justice (Luxembourg)
Factual Background A Law of 12 April 1996 gives the State the ability to conclude framework agreements with professional branches in the textile, clothing, leather and shoe sector in order to maintain or develop employment in these sectors ("Borotra plan"). The agreements enable the (...)

The German Higher Administrative Court of Berlin-Brandenburg supports the German government’s attempt to make recovery of unlawful State aid more effective (Kvaerner Warnow Werft)
Eversheds Sutherland (Düsseldorf)
Background The Member States of the European Union are required to recover unlawful (i.e. non notified) State aid following a negative decision by the European Commission (“Commission”), declaring an aid incompatible with the common market. Under German law, the Verwaltungsakt (...)

The Berlin Higher Administrative Court issues a ruling which finds that the recovery of aid ordered by the commission in a negative decision can be implemented and enforced unilaterally by German authorities based on public law even in cases in which the aid were granted on the basis of private law
Gleiss Lutz (Brussels)
,
Jones Day (Brussels)
,
Gleiss Lutz (Brussels)
The Berlin-Brandenburg Higher Administrative Court has ruled that a Commission’s negative decision ordering the recovery of aid may be implemented and enforced unilaterally by German authorities by means of an administrative act (i.e. based on public law) even if the aid were granted on the (...)

The French Administrative Court of Appeal of Douai rules that the use of a tax on certain advertising expenses, which finances modernization projects in the sector of the general press, is a State aid and is illegal for lack of notification (Auchan France)
Schmitt Avocats (Paris)
By decision of 25 October 2005, the Administrative Court of Appeal of Douai ruled that the use of the Tax on certain advertising expenses, which mainly finance the Found for Modernization of the Daily Press for general and political information, is a state aid in the meaning of Article 87 EC (...)

The Danish Competition Authority examines the prices paid by a municipality for the services provided by private companies in the field of home care and judges that it adequately compensated the private service providers (Fritvalg - Sundeved Kommune)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background In the present case the Danish Competition Authority (DCA) had been informed that the municipality of Sundeved was paying too low a price for the services provided by private companies in the field of home care. Summary of the Court’s findings The DCA stressed that (...)

The Danish Competition Authority examines the prices paid by a municipality for the services provided by private companies in the field of home care and judges that it adequately compensated the private service providers (Fritvalg - Helle Kommune)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background In the present case the Danish Competition Authority (DCA) examined the prices paid by the municipality of Helle for the services provided by private companies in the field of home care. Summary of the Court’s findings The DCA stresses that under Section 11a of the (...)

The Danish Competition Authority examines the prices paid by a municipality for the services provided by private companies in the field of home care and judges that it adequately compensated the private service providers (Rødovre Kommune justerer hjemmehjælpsydelser)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background The Danish Competition Authority (DCA) found that a Danish municipality had fixed its prices for home care below the actual cost level. Thereby, the municipal service provider was found to be in receipt of State aid falling under the Danish Competition Act. The (...)

The Austrian Supreme Administrative Court rules that a dentist may not be granted a VAT exemption on the grounds that it would constitute unlawful State aid
University of Vienna
Background & Facts of the case The applicant, a dentist, claimed to be eligible for certain VAT exemptions (waiver on adjusting deductions in the course of a transition from VAT liability to VAT exemption for medical services that was required by Community law). The tax office and the (...)

The Danish Competition Authority dismisses claim based on State aid rules on the ground that insufficient evidence was brought by the claimants and issues guidelines for the future claims (Storskærmsproduktioner)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background A TV producer complained about a public school ("Århus tekniske Skole") providing big screen productions free of charge in the form of open-air concerts. It claimed that the school was thereby using State subsidies meant for educational activities to finance production (...)

The Danish Competition Authority rejects a complaint concerning an alleged violation of State aid rules on the grounds that the State aid measure is likely to affect trade between Member States and consequently lacks competence under Section 11a of the Danish Competition Act (Teknologisk Institut)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background The Centre of Tribology, which is part of the Technological Institute, is active in the field of tribology (comprising advanced surface treatment of tools and machine parts). It receives public funding from both the European Union and the Danish State. The Danish (...)

The Danish Competition Authority dismisses a claim based on State aid rules on the grounds that all transactions between a regional public TV channel and its subsidiary had been carried out on market terms (Rødovre Kommune justerer hjemmehjælpsydelser)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background The company BORNnet Marketing, a producer of advertising spots, complained to the Danish Competition Authority ("DCA") that a regional television channel, TV2 Bornholm, had subsidized the company, Mediegruppen Bornholm, by allowing the latter to use its assets and (...)

The Pau Administrative Court rules that a contract passed between a regional airport and a low cost airline company to develop a new route is invalid for lack of notification to the EU Commission (Air Méditerranée / Ryanair)
Schmitt Avocats (Paris)
By a judgement of 3 May 2005, the Administrative Court of Pau (“Tribunal administratif de Pau”) confirmed that regional airports managers face serious legal difficulties when they plan to create new international routes with the help of low cost airline companies by according them substantial (...)

The Cypriot Commissioner for State aid control authorizes an aid scheme for small and medium-sized enterprises for the promotion of alternative forms of economic activities in the field of agri-tourism (Small and medium-sized enterprises)
Queen Mary University of London
Factual Background On 29 March 2005, the Department of Town Planning and Housing of the Ministry of Interior notified to the Commissioner for State aid control a draft aid scheme, entitled “aid scheme for small and medium-sized enterprises for the promotion of alternative forms of economic (...)

The French Social Security Court seeks ECJ preliminary reference on whether tax financing retirement benefits amounted to State aid (Casino)
Sheppard Mullin (Brussels)
,
European Commission
Brief description of the facts and legal issues The claimant and other parties brought an action for reimbursement of certain social security contributions for retiring craftsmen and traders, from ORGANIC which they had paid during the period from 2000 to 2002. The claimant requested the (...)

The French Administrative Courts apply the ECJ’s preliminary ruling qualifying a tax on meat purchases as a State aid (Gemo / Nevers viandes / Lianoudis / Sobledis / Uni service Distribution / Honfleur / Picard surgelés)
European Court of Justice (Luxembourg)
Despite the efforts of public authorities in order to inform citizens about the importance of fruits and vegetables for health, Europeans and especially French, remain attached to the taste and proteins brought by meat. Like every industrial activity, the meat industry produces waste that has (...)

The Belgium Supreme Court recalled that subsequent notification of State aid is insufficient to dispense with obligation to reimburse (Voeder Velghe - De Backer)
Sheppard Mullin (Brussels)
,
European Chemicals Agency (Helsinki)
Background The Law of 24 March 1987 on animal health established a system to finance services to combat animal diseases and improve animal hygiene and the health and quality of animals and animal products. The complainants were required to make contributions to this system. The Belgian (...)

The Danish Competition Authority dismisses the complaint of a claimant alleging that one of its competitors active on the market received subsidies from a State-owned institute (Statens Serumsinstitut)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background The Danish Competition Authority (DCA) received a complaint from an actor on the market of vaccinations according to which the State-owned Serum Institute ("SSI") had subsidized a competing company, Udlandsvaccinationen I/S. The subsidies allegedly consisted in (1) SSI (...)

The Danish Competition Authority dismisses the claim of competitors seeking the recovery or the termination of the payment of aid granted from public funds to support certain commercial activities (Transporterhvervets uddannelsesråd)
Honoré, Fallesen & Andersen - HFA Law (Copenhagen)
Factual Background The Transport business’ Education Council (Transporterhvervets Uddannelsesråd, "TUR") is a sector-specific education committee that according to Danish law on work related training is committed to assessing the needs of relevant training courses, including the preparation (...)

The Cypriot Commissioner for State aid control authorizes an aid scheme for the provision of access to research infrastructures abroad (Research infrastructures abroad)
Queen Mary University of London
Factual Background: On 24 January 2005, the Research Promotion Foundation notified to the Commissioner for State aid Control a draft scheme, entitled “scheme for the provision of access to research infrastructures abroad”. The scheme is based on the acknowledgment of the essential need that (...)

The Cyprus Commissioner for State Aid Control authorises an aid scheme aimed mainly at the improvement of working conditions and the reduction of workplace accidents in the construction industry (Aid scheme for construction companies)
Queen Mary University of London
Factual Background On 23 December 2004, the Cyprus Productivity Centre notified to the Commissioner for State Aid Control a draft aid scheme, entitled “aid scheme for construction companies concerning the upgrade of their equipment”. The scheme aims at the improvement of working conditions (...)

The Cyprus Commissioner for State aid control authorises an aid scheme for the payment of social security contributions to employers and disabled employees finding that it falls within EC Reg. N° 2204/2002 (Scheme for the payment of social security contributions)
Queen Mary University of London
Factual Background On 4 January 2005, the Department of Labour of the Ministry of Labour and Social Insurance notified a draft aid scheme to the Commissioner for State aid control, entitled “scheme for the payment of social security contributions to employers and disabled employees”. The (...)

The Cyprus Commissioner for State aid control authorizes an aid scheme aimed at facilitating the recruitment of unemployed persons with a serious disability in the private sector (Scheme for recruitment of disabled persons)
Queen Mary University of London
Factual background On 4 January 2005, the Department of Labour in the Ministry of Labour and Social Insurance notified a draft aid scheme to the Commissioner for State aid control, entitled “scheme for the provision of incentives regarding the recruitment of persons with a serious disability (...)

The French Supreme Court refers to the ECJ for a preliminary ruling concerning (i) the repayment of a mandatory contribution based on the turnover of pharmaceutical laboratories and (ii) national rules of procedure leading to State aid classification (Laboratoires Boiron)
Schmitt Avocats (Paris)
By decision of 14 December 2004, the French Cour de Cassation referred to the European Court of Justice (ECJ) for a preliminary ruling concerning the classification as state aid of the contribution instituted by Article L. 245-6-1 of the Social Security Code and the way to obtain its (...)

The French Supreme Court refers questions to the EU Court of Justice relating to social security exemptions for French laboratories (Laboratoires Boiron)
Sheppard Mullin (Brussels)
,
European Commission
Brief description of the facts and legal issues A laboratory filed an action for the refund of a Sociàl Security contribution arguing that this contribution was unlawful State aid, because certain laboratories were exempt. Referring to the Banks case (Joined Cases C-390/98, Banks & Co v (...)

The EU Court of Justice Advocate General Tizzano supports the reimbursement of the tax on direct sales paid by French pharmaceutical laboratories in a preliminary ruling case (Boiron / ACOSS)
Lenoir Avocats (Paris)
,
Eversheds Sutherland (Paris)
Background Law n° 97-1164, of 19 December 1997, on social security funding for 1998 set up a special 2.5 % tax payable only by pharmaceutical laboratories on sales of medicines made directly to pharmacies. Proceeds from the tax were aimed at financing the social security system. However, (...)

The Paris Court of Appeal orders the Ministry of Culture to recover unnotified State aid granted in the publishing sector, having found no relevant public service obligations (CELF I)
Schmitt Avocats (Paris)
By decision of 5 October 2004, the Administrative Court of Appeal of Paris applied Article 93(3) EC Treaty (today Article 88 EC) and ordered the reimbursement of aids paid without beforehand notification to the European Commission. The French Court also applied the principles and criteria set (...)

The French Administrative Court of Clermont-Ferrand awards compensation for losses caused by nullity of contract resulting from authorities’ failure to consider State aid rules (Fontanille)
Sheppard Mullin (Brussels)
,
European Commission
Brief description of the facts and legal issues A law of 1996 enabled the French government to sign agreements with undertakings in the clothing, leather, shoe and textile sectors regarding a reduction in working time, in order to avoid redundancies. In return, the French government granted (...)

The Belgian Commercial Court of Kortrijk suspends proceedings of recovery of State aid pending CFI judgment is challenged by the EU Commission (Walloon Region / Ter Lembeek International)
Sheppard Mullin (Brussels)
,
Suez Environnement (Paris la Défense)
On 25 January 2006, the Commission decided to bring before the European Court of Jutsice (“ECJ”) an action against Belgium for failure to comply with a Commission’s decision declaring a State aid incompatible with the common market (see IP:). On 24 April 2002, the Commission had ruled that (...)

The Portuguese Supreme Administrative Court rejects an appeal requesting that compensatory indemnity worth €50,000 is examined to determine whether it constitutes illegal State aid (Fábrica de Tabacos Micaelense)
Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
,
Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
Background and facts of the case The case of Fábrica de Tabacos Micaelense concerns an appeal brought by a tobacco company based in Ponta Delgada, in the Portuguese Autonomous Region of Azores before the Full Chamber of the Supreme Administrative Court (“SAC”) regarding a chamber judgment of (...)

The Paris Court of Appeal holds a bank liable in damages for its lack of diligence during EU Commission proceedings (CDR / FG Marine-Stardust)
Sheppard Mullin (Brussels)
,
European Commission
Brief description of the facts and legal issues In June 1997, CDR sold its majority holding in Stardust Marine ("Stardust") to FG Marine. In September 1999, the Commission considered that the State aid granted to Stardust was incompatible with the Common Market and ordered reimbursement of (...)

The Strasbourg and Nancy Administrative Courts rule that contracts passed between the airport of Strasbourg and a low-cost airline company are a State aid requiring a notification to the EU Commission (Brit Air / Ryan Air)
Schmitt Avocats (Paris)
One of the hottest topics these last months in the field of state aid is the conditions by which regional airports decided the opening of new international routes with the help of low cost airline companies. In France, the first important case took place in Strasbourg and concerned the opening (...)

The Romanian State Aid Regime: An overview
European Security Transport Association (ESTA)
Law n° 143/1999 on State Aid, Last consolidated version of December 15th 2003 (Unofficial English translation) Competition Law n° 21/1996, Romanian Official Journal, Part I, n° 88, April 30th, 1996 (Unofficial English translation) The legal basis for the creation of a state aid control (...)

The French Administrative Court rejects claim for damages for failure to prove the alternative course of action that would have been adopted in the absence of State aid (Kélian)
Sheppard Mullin (Brussels)
,
European Commission
Brief description of the facts and legal issues A law of 1996 enabled the French government to sign agreements with undertakings in the clothing, leather, shoe and textile sectors regarding a reduction in working time, in order to avoid redundancies. In return, the French government granted (...)

Three French Courts acknowledged State’s liability towards aid recipients for not having granted un-notified State aid (Kélian / Fontanille / Salmon Arc-en-ciel)
University of Aix-Marseille
These two cases are in relation to the setting of the plan Borotra (Article 99 of Law n° 96-314 of 12 April 1996 implementing various economic and financial provisions) aimed at fighting the fall of employment in the textile, clothing, leather and footwear industries. The Law permitted the (...)

French Administrative Courts repeatedly rules that Art. 87.1 EC does not have direct effect and tacitly considered that they do not have to raise by their own motion a potential breach of Art. 88.3 EC (14 cases)
University of Aix-Marseille
1. Introduction The present note is a comment on not less than fourteen Courts decisions in which the French administrative Courts repeatedly ruled that parties cannot, on the basis of former article 92 EC (now article 87 EC) alone, challenge the compatibility of an aid with the common (...)

The Supreme Administrative Court of Portugal delivers judgement on the application of State aid in public tender process (Cruz Vermelha Portuguesa)
Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
,
Morais Leitão, Galvão Teles, Soares da Silva (Lisbon)
Background & facts of the case The issue regarding the present case first arouse after a decision of the Board of Directors of the Hospital of Oliveira de Azeméis, which had awarded the Portuguese Red Cross (“Cruz Vermelha Portuguesa” or “CVP”) with the public contract for patient (...)

The French State Council holds that only measures affecting trade between member States and contrary to Art. 87 EC have to be notified (Glénat)
University of Bordeaux
Well known for its comics publications, the Glénat publishers extended their reputation in State aid case law literature (Case commented in French, Dr. Adm., note M. Bazex et S. Blazy, February 2002, n° 21, p. 15 et RJF, February 2002, n° 249). The issue raised here is procedural. It concerns (...)

The French Judiciary Supreme Court makes a clear difference between examination of the compatibility of a State aid and control of the legality of the aid (Le Guen / Guyomarch)
University of Aix-Marseille
The claims for reimboursement of what the French statutes call “compulsory contributions”, a kind of professional taxation financing agricultural organizations, is one among most alive sources of the implementation of the State aid law in France (see also the cases relating CNIH, French (...)

The EU Court of Justice issues a decision on the scope of duty to recover an illegal state aid (Maribel)
Gómez-Acebo & Pombo (Brussels)
,
Gómez-Acebo & Pombo (Brussels)
In 1981, Belgium adopted a special social security scheme called “Maribel”. According to that scheme, undertakings employing manual workers enjoyed a reduction in social security contributions for all such workers. That scheme had a general and automatic application and was therefore not (...)

The German Federal Constitutional Court determines that the principle of legitimate expectations is to be interpreted narrowly in the recovery of State aid because of the principle of primacy of EU law (Alcan)
Gleiss Lutz (Brussels)
,
Jones Day (Brussels)
,
Gleiss Lutz (Brussels)
The Federal Constitutional Court (Bundesverfassungsgericht) rejected the constitutional complaint (Verfassungsbeschwerde) filed against the judgment of the Federal Administrative Court (Bundesverwaltungsgericht) of 23 April 1998, 3 C 15/97 – Alcan. It held that this judgment and the CJEU’s (...)

The French Tribunal in charge of social security cases applies to the EU Court of Justice for a preliminary ruling on whether a tax exemption can be considered not State aid but a mere compensation of public service costs (Ferring)
University of Bordeaux
The important case law of the ECJ often finds its origin in a preliminary question raised by national judges of first instance (e. g. ECJ, April 30th, 1986, Asjes a. o., Joined Cases 209/84 209/84, 210/84, 211/84, 212/84, 213/84 and 213/84, [1986] ECR 1425, “Nouvelles Frontières”, preliminary (...)

The Paris Commercial Tribunal rules that a recipient of State aid could not be held liable for not having verified whether the aid had been notified (SFEI / La Poste-Chronopost)
Sheppard Mullin (Brussels)
Express delivery is a personalized service for the rapid dispatch of documents and parcels. In France this sector is open to unrestricted competition, unlike the ordinary postal service which is subject to the monopoly of the Post Office. The Société française de messagerie internationale (...)

The French Judiciary Supreme Court rules that the claimants had not demonstrated that the tax constituted State aid and failed to submit argument on a possible existing aid (Huttepain Maine Aliments / Guyomarc’h Vertou / Nantes Sanders / Marcel Braud)
University of Aix-Marseille
Background The French State had levied a special tax for cereal storage during the 1986-1987 and 1987-1988 campaigns. Various agricultural companies claimed the reimbursement of the tax before the national first instances courts on the basis of Article 88 (3). Some of these first instance (...)

The French Conflict Tribunal confirms previous case law that prohibits civil jurisdictions to challenge the legality of an administrative act but marks a first step in the right EU-compatible direction (SFEI / UFEX)
European Court of Justice (Luxembourg)
The Septfonds judgment of the French Tribunal des Conflits (T. confl., 16 juin 1923, n° 00732) is one of the founding cases on how the competences are shared among the civil and administrative jurisdictional orders in France. The principle, founded on article 13 of a law dated from 16-24 (...)

The EU Court of Justice admits the suspension of a new aid measure, awaiting the effective recovery of formerly granted incompatible aid to the same beneficiary (Textilwerke Deggendorf)
KU Leuven
On 15 May 1997, the European Court of Justice (‘ECJ’) ruled in an appeal, lodged against a General Court judgment of 13 September 1995 (T-244/93). The action was brought by Textilwerke Deggendorf GMBH (‘TWD’), beneficiary of two separate State aid measures, granted by the German Authorities. (...)

The EU Court of Justice rejects an appeal by a multinational conglomerate which sought to annul a Commission decision seeking the recovery of €6.36M in State aid on the grounds that the aid was ’operating’ aid, as opposed to ’investment’ aid, which is generally prohibited under EU law (Siemens)
Ashurst (London)
On May 15th 1997, the CJEU dismissed an appeal by Siemens SA (Belgian branch of Siemens) to overturn the Court of First Instance’s judgement (hereinafter ‘the contested judgment’) and to annul a decision by the European Commission (‘the contested decision’). The contested decision concerned € (...)

The French Administrative Supreme Court refers to the EU Court of Justice for preliminary ruling a case on tax deduction that is limited to expenditure for research carried out in the State of taxation (Baxter)
University of Aix-Marseille
Three pharmaceuticals companies engaged an action for the annulment of a State ordinance which established emergency measures aiming at the re-establishment of the balance of social security consisting in exceptional contributions to be paid by pharmaceuticals companies. One of these (...)

The EU Court of Justice determines that Member States are obliged to recover aid deemed unlawful by the Commission even where there may be ’legitimate expectations’ to the contrary, failure to do so would not comply with the principle of effectiveness (Alcan Deutschland)
Covington & Burling (Brussels)
,
Covington & Burling (Brussels)
On 20 March 1997, the Court of Justice of the European Union (CJEU) judged that Member States are obliged to revoke a decision granting unlawful aid that the Commission has declared incompatible and which it has ordered recovery (case C-24/95). The CJEU’s preliminary ruling was referred by (...)

The EU Court of Justice confirms the requirements for national courts to grant interim relief against Commission decisions (Atlanta Fruchthandelsgesellschaft)
Hausfeld (London)
On 9 November 1995, the Court of Justice gave its ruling on a reference from the Verwaltungsgericht Frankfurt am Main (Administrative Court of Frankfurt) on questions relating to the ability of national courts to grant interim relief in a form that effectively disapplied an act of the EU (...)

The French State Council rejects the direct effect of Art. 87 EC and excludes “automatic” notification to the EU Commission of situations likely to be regarded as State aid (Association “La vache à lait qui refuse de se laisser traire”)
University of Bordeaux
This judgment is less known for its contribution in State aid law than because of the title of the applicant. None of its solutions is innovative. But for a long time, the absence of direct effect of ex-Article 92 EC (now Article 87 EC) and the office of the national judge on the basis of (...)

The EU Court of Justice sets out uniform conditions under which national courts may adopt interim measures suspending Commission decisions relating to State aid (Zuckerfabrik Süderdithmarschen / Hauptzollamt Itzehoe / Zuckerfabrik Soest / Hauptzollamt Paderborn)
Deloitte (Brussels)
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Deloitte (Brussels)
On 21 February 1991, the Court issued a preliminary ruling confirming that national courts may suspend the enforcement of national administrative measures implementing Community [EU] regulations and setting out uniform conditions under which national courts may adopt such interim measures. (...)

The EU Court of Justice declares a Commission decision void waiving a State aid recovery order and in doing so sets out the hierarchy of jurisdiction in the EU (Foto-Frost)
Ashurst (London)
On October 22nd 1987, in a preliminary ruling requested by the Finance Court of Hamburg, the CJEU found in favour of Foto-Frost and declared void a Commission decision on the post-clearance recovery of State aid. The judgement sets out the hierarchy of jurisdiction between different courts in (...)

The EU Court of Justice confirms the Commission’s decision finding the German investment subsidy for the yarn sector to constitute illegal and incompatible aid (Deufil)
European Commission - DG COMP (Brussels)
24 February 1987: The EU Court of Justice confirms the Commission decision finding the German investment subsidy for the yarn sector to constitute illegal and incompatible aid (Deufil v Commission) Background The judgment follows an action for annulment brought by a polyamide yarn (...)

The EU Court of Justice defines the ‘reasonable period’ by which the Commission’s preliminary examination of a State aid measure must be concluded (Gebrüder Lorenz)
KU Leuven
On 11 December 1973, the European Court of Justice (‘ECJ’) ruled on a preliminary question in Gebrüder Lorenz v. Federal Republic of Germany (C-120/73). The main question at hand concerned the length of the European Commission’s (‘EC’) period of consideration and examination of a notified aid (...)

The EU Court of Justice preliminarily rules that State aid rules are directly effective and that a levy on specific domestic and international products may breach those rules if the proceeds of the levy are exclusively used to benefit domestic products (Carmine Capolongo / Azienda Agricole Maya)
Basic-Fit (Hoofddorp)
On 19 June 1973, the Court of Justice of the EU replied to a preliminary ruling from the Pretura di Conegliano in Italy enquiring about the (at the time) Articles 92, 13, 30 and 86 of the Treaty (Articles 28, 30, 107 and 102 of the Treaty on the Functioning of the EU or TFEU). The questions (...)

The EU Court of Justice issues judgment on the enforcement of EU State aid laws in national courts in the event of inconsistencies with domestic Member State law (Costa / Enel)
Fenech & Fenech Advocates (Valletta)
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Fenech & Fenech Advocates (Valletta)
The landmark judgment of the European Court of Justice (the “ECJ”) in the names Flaminio Costa v. ENEL (Case 6/64) delivered on the 15th of July 1964, was the result of a preliminary reference made by the Giudice Conciliatore di Milano, Italy (the “Milan Court”) to the ECJ on the (...)