Electrolux v Commission (State aid) [2012] EUECJ T-115/09 (14 February 2012)

Electrolux v Commission (State aid) [2012] EUECJ T-115/09 (14 February 2012)

The Commission committed manifest errors of assessment by treating the sale of Brandt Components as an appropriate compensatory measure and by failing to consider the cumulative effect of earlier incompatible Italian aid not yet recovered. These errors undermined the Commission's conclusion that the compensatory measures were proportionate and that the aid was compatible with the common market. As a result, the contested decision must be annulled.

Citation
[2012] EUECJ T-115/09
Parties
Applicant: Electrolux AB; Applicant: Whirlpool Europe BV; Respondent: European Commission; Intervener: French Republic; Intervener: Fagor France SA (FagorBrandt)
Jurisdiction
European Union
Judgment Date
14 February 2012
Procedural Posture
Action for Annulment / Final Judgment
Outcome
application granted; Commission decision annulled
Legal Topics
State Aid Compatibility, Restructuring Aid, Distortion of Competition, Compensatory Measures, Judicial Review of Commission Decisions
European Union Law Competition Law State Aid State Aid Compatibility Restructuring Aid Distortion of Competition Compensatory Measures Judicial Review of Commission Decisions

Case Brief

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Parties

Electrolux AB

Applicant

Whirlpool Europe BV

Applicant

European Commission

Respondent

French Republic

Intervener

Fagor France SA (FagorBrandt)

Intervener

Procedural Posture

Action for Annulment / Final Judgment

Legal Issues

  1. 1 Whether the compensatory measures adopted by the Commission were proportionate to the distortion of competition caused by the aid at issue
  2. 2 Whether the Commission failed to consider the cumulative effect of earlier incompatible aid not yet recovered
  3. 3 Whether the Commission committed manifest errors of assessment under the relevant Guidelines

Ratio Decidendi

The Commission committed manifest errors of assessment by treating the sale of Brandt Components as an appropriate compensatory measure and by failing to consider the cumulative effect of earlier incompatible Italian aid not yet recovered. These errors undermined the Commission's conclusion that the compensatory measures were proportionate and that the aid was compatible with the common market. As a result, the contested decision must be annulled.

Court Disposition

application granted; Commission decision annulled

Orders

  • Annuls Commission Decision 2009/485/EC of 21 October 2008 on State aid No C 44/07 (ex N 460/07) for FagorBrandt
  • Orders the European Commission to bear its own costs and to pay those of Electrolux AB and Whirlpool Europe BV