P & O European Ferries (Vizcaya), SA v (T-116/01) and Diputacion Foral de Vizcaya (T-118/01) v Commission of the European Communities. (State aid) [2003] EUECJ T-116/01 (5 August 2003)

P & O European Ferries (Vizcaya), SA v (T-116/01) and Diputacion Foral de Vizcaya (T-118/01) v Commission of the European Communities. (State aid) [2003] EUECJ T-116/01 (5 August 2003)

The Court held that the original and new agreements constituted a single, unnotified aid scheme that did not reflect actual needs and conferred an advantage on P&O Ferries not obtainable under normal market conditions. The notification requirements under Article 88(3) EC were not met, rendering the aid unlawful. The Commission was correct to order recovery of the full amount of aid, and no legitimate expectations or procedural errors precluded recovery.

Citation
[2003] EUECJ T-116/01
Parties
Applicant in Case T 118/01 and Intervener in Case T 116/01: Diputación Foral de Vizcaya; Applicant in Case T 116/01 and Intervener in Case T 118/01: P&O European Ferries (Vizcaya) SA (formerly Ferries Golfo de Vizcaya); Respondent: European Commission
Jurisdiction
European Union
Judgment Date
05 August 2003
Procedural Posture
Joined Applications for Annulment of a Commission Decision (eu State Aid) / Judgment of the Court of First Instance (now General Court)
Outcome
Applications dismissed; Commission decision upheld.
Legal Topics
State Aid Compatibility, Notification Procedure Under Article 88(3) EC, Market Economy Operator Test, Recovery of Unlawful Aid, Effect on Intra Community Trade
European Union Law Competition Law State Aid State Aid Compatibility Notification Procedure Under Article 88(3) EC Market Economy Operator Test Recovery of Unlawful Aid Effect on Intra Community Trade

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Parties

Diputación Foral de Vizcaya

Applicant in Case T 118/01 and Intervener in Case T 116/01

P&O European Ferries (Vizcaya) SA (formerly Ferries Golfo de Vizcaya)

Applicant in Case T 116/01 and Intervener in Case T 118/01

European Commission

Respondent

Procedural Posture

Joined Applications for Annulment of a Commission Decision (eu State Aid) / Judgment of the Court of First Instance (now General Court)

Legal Issues

  1. 1 Whether the aid granted under the new agreement constituted unlawful State aid under Article 87(1) EC
  2. 2 Whether the Commission was correct to order recovery of the aid
  3. 3 Whether the procedural requirements of notification under Article 88(3) EC were met

Ratio Decidendi

The Court held that the original and new agreements constituted a single, unnotified aid scheme that did not reflect actual needs and conferred an advantage on P&O Ferries not obtainable under normal market conditions. The notification requirements under Article 88(3) EC were not met, rendering the aid unlawful. The Commission was correct to order recovery of the full amount of aid, and no legitimate expectations or procedural errors precluded recovery.

Court Disposition

Applications dismissed; Commission decision upheld.

Orders

  • The applications in Cases T-116/01 and T-118/01 are dismissed.
  • Applicants to bear their own costs and those of the Commission.