Procedure - Legal protection

5 important questions on Procedure - Legal protection

Regarding the legal protection, what is the participation in COM procedure?

  • Preliminary and main examination procedure: bilateral, between COM and MS
  • Interested parties (in particular: recipient of aid): not a party to procedure, no right to be heard; no right to see the file; but right to utter opinion and right to file a complaint with COM

Regarding the legal protection, what is the reaction to a COM-decision bringing procedure to an end?

  • Action for annulment (art 263 TFEU)
    • privileged claiments
      • MS, Parliament, Council
    • non-privileged claimants
      • requirements: direct an individual concern

Regarding legal protection, what is the proceeding before national courts?

  • Basis: prohibition to grant aid has direct effect (art. 108 para 3 TFEU)
  • Infringement against art 108 para 3 TFEU: invalidity of legal acts by means of which aid is granted
  • claims for omission, elimination and damages

  • obligation to request recovery in case of positive COM-decision during national proceedings?
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ECJ case C-199/06, judgement of 12 Feb 2008, CELF. What were the facts of the case?

  • French undertaking CELF received subsidies from France to offset the extra costs of handling small orders of French books placed by booksellers established abroad and in overseas departements of France

  • Complaint to COM by competitor SIDE •
    • Several phases
    • approval by COM
    • repeal by General Court

  • In parallel: SIDE initiated proceedings before national courts

ECJ case C-199/06, judgement of 12 Feb 2008, CELF. What was the decision of the ECJ?

  • effectiveness of Art 108 para 3 TFEU as an instrument for the protection of competition before national courts
  • state aid turns out to be lawful (substantially) acc to compatibility regime (Article 107 paras 1 f)
  • Objective of Art 108 para 3 last sentence TFEU: only aid which is in accordance with common market may be implemented
  • No obligation under EU law for national courts to request the recovery of aid which has meanwhile been approved by the COM
  • For period up to authorisation by COM: interest
  • A national law duty for national courts to request recovery in such a case is acceptable, though

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