The German Federal Court issues judgment on the prohibition of implementation under state aid law in Article 108(3) TFEU is a protective law in favour of the competitors of the aid recipient

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German Federal Court, Flughafen Lübeck, I ZR 213/08, Court decision, 10 February 2011 (German)

Under certain circumstances, undertakings can demand the recovery of state aid granted to their competitors in violation of the prohibition of implementation under European law in Art. 108 para. 3 sentence 3 TFEU. The BGH considered the implementation ban to be a protective law within the meaning of § 823(2) BGB (German Civil Code) and a market conduct regulation within the meaning of § 4 no. 11 UWG (Unfair Competition Act). Background & facts of the case The defendant operates the commercial airport Lübeck-Blankensee. The defendants sole shareholder has been the city of Lübeck, which was contractually obligated to compensate for the defendants losses in accordance with the municipal budget. Since the year 2000, the airline Ryanair has been operating flights to and from the

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Citation

Ulrich Soltész, Philipp Werner, Harald Weiss, The German Federal Court issues judgment on the prohibition of implementation under state aid law in Article 108(3) TFEU is a protective law in favour of the competitors of the aid recipient, 10 février 2011, e-Competitions February 2011, Art. N° 107371

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