# Official Journal C 185/2022

| | ISSN 1977-091X |
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| Official Journal
  of the European Union | C 185 |
| | |
| English edition | Information and Notices | Volume 656 May 2022 |

ISSN 1977-091X

Official Journal

of the European Union

C 185

English edition

Information and Notices

Volume 656 May 2022

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| Contents | page |
| --- | --- |
| | II   Information |
| | INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | European Commission |
| 2022/C 185/01 | Communication from the Commission – Approval of the content of a draft Commission Regulation declaring certain categories of aid to undertakings active in the production, processing and marketing of fishery and aquaculture products compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union and repealing Commission Regulation (EU) No 1388/2014 | 1 |
| 2022/C 185/02 | Non-opposition to a notified concentration (Case M.10691 – CDP GROUP / FOMAS GROUP / PUNCH GROUP / JV) (
  1
  ) | 46 |

Contents

page

II   Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

2022/C 185/01

Communication from the Commission – Approval of the content of a draft Commission Regulation declaring certain categories of aid to undertakings active in the production, processing and marketing of fishery and aquaculture products compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union and repealing Commission Regulation (EU) No 1388/2014

1

2022/C 185/02

Non-opposition to a notified concentration (Case M.10691 – CDP GROUP / FOMAS GROUP / PUNCH GROUP / JV) (
  1
  )

1

46

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| | IV   Notices |
| --- | --- |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | European Commission |
| 2022/C 185/03 | Opinionof the Advisory Committee on restrictive agreements and dominant positionsat its meeting on 30 November 2021concerning a draft settlement decision relating toCase COMP/AT.40135 – FOREX (Sterling Lads) Rapporteur: Portugal (
  1
  ) | 47 |
| 2022/C 185/04 | Final Report of the Hearing Officer – AT.40135 - FOREX (Sterling Lads – settlement procedure) (
  1
  ) | 48 |
| 2022/C 185/05 | Summary of Commission Decision of 2 December 2021 relating to a proceeding under Article 101 of the Treaty on the functioning of the European Union and Article 53 of the EEA Agreement (Case AT.40135 – FOREX – STERLING LADS)
  (notified under document number C(2021) 8613 FINAL)

   (
  1
  ) | 50 |
| 2022/C 185/06 | Opinion of the Advisory Committee on restrictive agreements and dominant positions at its meeting on 30 November 2021 concerning a draft ordinary decision relating to Case AT.40135 – FOREX (Sterling Lads) – Rapporteur: Portugal | 55 |
| 2022/C 185/07 | Final Report of the Hearing Officer – AT.40135 – FOREX (Sterling Lads – ordinary procedure) | 56 |
| 2022/C 185/08 | Summary of Commission Decision of 2 December 2021 relating to a proceeding under Article 101 of the Treaty on the functioning of the European Union and Article 53 of the EEA Agreement (CASE AT.40135 – FOREX – STERLING LADS)
  (notified under document number C(2021) 8612 final) | 60 |
| 2022/C 185/09 | Euro exchange rates — 5 May 2022 | 65 |

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

2022/C 185/03

Opinionof the Advisory Committee on restrictive agreements and dominant positionsat its meeting on 30 November 2021concerning a draft settlement decision relating toCase COMP/AT.40135 – FOREX (Sterling Lads) Rapporteur: Portugal (
  1
  )

1

47

2022/C 185/04

Final Report of the Hearing Officer – AT.40135 - FOREX (Sterling Lads – settlement procedure) (
  1
  )

Sterling Lads

1

48

2022/C 185/05

Summary of Commission Decision of 2 December 2021 relating to a proceeding under Article 101 of the Treaty on the functioning of the European Union and Article 53 of the EEA Agreement (Case AT.40135 – FOREX – STERLING LADS)
  (notified under document number C(2021) 8613 FINAL)

   (
  1
  )

(notified under document number C(2021) 8613 FINAL)

1

50

2022/C 185/06

Opinion of the Advisory Committee on restrictive agreements and dominant positions at its meeting on 30 November 2021 concerning a draft ordinary decision relating to Case AT.40135 – FOREX (Sterling Lads) – Rapporteur: Portugal

55

2022/C 185/07

Final Report of the Hearing Officer – AT.40135 – FOREX (Sterling Lads – ordinary procedure)

Sterling Lads

56

2022/C 185/08

Summary of Commission Decision of 2 December 2021 relating to a proceeding under Article 101 of the Treaty on the functioning of the European Union and Article 53 of the EEA Agreement (CASE AT.40135 – FOREX – STERLING LADS)
  (notified under document number C(2021) 8612 final)

(notified under document number C(2021) 8612 final)

60

2022/C 185/09

Euro exchange rates — 5 May 2022

65

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| | V   Announcements |
| --- | --- |
| | PROCEDURES RELATING TO THE IMPLEMENTATION OF COMPETITION POLICY |
| | European Commission |
| 2022/C 185/10 | Prior notification of a concentration (Case M.10431 – Ali Group / Welbilt) (
  1
  ) | 66 |

V   Announcements

PROCEDURES RELATING TO THE IMPLEMENTATION OF COMPETITION POLICY

European Commission

2022/C 185/10

Prior notification of a concentration (Case M.10431 – Ali Group / Welbilt) (
  1
  )

1

66

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| | |
| --- | --- |
| | (1)   Text with EEA relevance. |

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(1)   Text with EEA relevance.

1

| EN | |
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EN

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II Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

| 6.5.2022 | EN | Official Journal of the European Union | C 185/1 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/1

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COMMUNICATION FROM THE COMMISSION

Approval of the content of a draft Commission Regulation declaring certain categories of aid to undertakings active in the production, processing and marketing of fishery and aquaculture products compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union and repealing Commission Regulation (EU) No 1388/2014

(2022/C 185/01)

The Commission has approved, on 17 December 2021, the content of a draft for a Commission Regulation declaring certain categories of aid to undertakings active in the production, processing and marketing of fishery and aquaculture products compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union and repealing Commission Regulation (EU) No 1388/2014.

The draft for a Commission Regulation is attached as an Annex to this Communication. It will be opened for public consultation in January 2022 at:

http://ec.europa.eu/competition/consultations/open.html

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ANNEX

DRAFT COMMISSION REGULATION (EU) .../...

of ...

declaring certain categories of aid to undertakings active in the production, processing and marketing of fishery and aquaculture products compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union and repealing Commission Regulation (EU) No 1388/2014

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 108(4) thereof,

Having regard to Council Regulation (EU) 2015/1588 of 13 July 2015 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to certain categories of horizontal State aid (1), and in particular Article 1(1), point (a) (i), (vi) and (vii) thereof,

Having published a draft of this Regulation (2),

After consulting the Advisory Committee on State Aid,

Whereas:

| (1) | State funding meeting the criteria laid down in Article 107(1) of the Treaty on the functioning of the European Union (‘TFEU’) constitutes State aid and requires notification to the Commission by virtue of Article 108(3) thereof. However, pursuant to Article 109 TFEU, the Council may determine categories of aid that are exempted from this notification requirement. In accordance with Article 108(4) TFEU, the Commission may adopt regulations relating to those categories of aid. |
| --- | --- |

(1)

State funding meeting the criteria laid down in Article 107(1) of the Treaty on the functioning of the European Union (‘TFEU’) constitutes State aid and requires notification to the Commission by virtue of Article 108(3) thereof. However, pursuant to Article 109 TFEU, the Council may determine categories of aid that are exempted from this notification requirement. In accordance with Article 108(4) TFEU, the Commission may adopt regulations relating to those categories of aid.

| (2) | Regulation (EU) 2015/1588, which replaced Council Regulation (EC) No 994/98 (3), empowers the Commission to declare, in accordance with Article 109 TFEU, that certain categories of aid may, under certain conditions, be exempted from the notification requirement. On the basis of Regulation (EC) No 994/98, the Commission adopted Commission Regulation (EU) No 1388/2014 (4) which provided that, under certain conditions, aid to small and medium-sized enterprises (‘SMEs’) active in the production, processing and marketing of fishery and aquaculture products, as well as aid granted to undertakings active in those fields independently of the size of the beneficiary to make good the damage caused by natural disasters is compatible with the internal market and not subject to the notification requirement of Article 108(3) TFEU. Regulation (EU) No 1388/2014 applies until 31 December 2022. |
| --- | --- |

(2)

Regulation (EU) 2015/1588, which replaced Council Regulation (EC) No 994/98 (3), empowers the Commission to declare, in accordance with Article 109 TFEU, that certain categories of aid may, under certain conditions, be exempted from the notification requirement. On the basis of Regulation (EC) No 994/98, the Commission adopted Commission Regulation (EU) No 1388/2014 (4) which provided that, under certain conditions, aid to small and medium-sized enterprises (‘SMEs’) active in the production, processing and marketing of fishery and aquaculture products, as well as aid granted to undertakings active in those fields independently of the size of the beneficiary to make good the damage caused by natural disasters is compatible with the internal market and not subject to the notification requirement of Article 108(3) TFEU. Regulation (EU) No 1388/2014 applies until 31 December 2022.

| (3) | The Commission has applied Articles 107 and 108 TFEU to undertakings active in the production, processing and marketing of fishery and aquaculture products in numerous decisions. It has also stated its policy in guidelines specific to that sector. In the light of the Commission’s experience in applying those provisions, it is appropriate for the Commission to continue making use of the powers conferred by Regulation (EU) 2015/1588 in order to exempt aid to SMEs from the notification requirement of Article 108(3) TFEU under certain conditions. The exemption for SMEs should be extended to aid to make good the damage caused by certain protected animals. |
| --- | --- |

(3)

The Commission has applied Articles 107 and 108 TFEU to undertakings active in the production, processing and marketing of fishery and aquaculture products in numerous decisions. It has also stated its policy in guidelines specific to that sector. In the light of the Commission’s experience in applying those provisions, it is appropriate for the Commission to continue making use of the powers conferred by Regulation (EU) 2015/1588 in order to exempt aid to SMEs from the notification requirement of Article 108(3) TFEU under certain conditions. The exemption for SMEs should be extended to aid to make good the damage caused by certain protected animals.

| (4) | It is appropriate to continue making use of the powers conferred by Regulation (EU) 2015/1588 in order to exempt aid to make good the damage caused by natural disasters which is granted to undertakings independently of the size of the beneficiary. |
| --- | --- |

(4)

It is appropriate to continue making use of the powers conferred by Regulation (EU) 2015/1588 in order to exempt aid to make good the damage caused by natural disasters which is granted to undertakings independently of the size of the beneficiary.

| (5) | Regulation (EU) 2015/1588 empowers the Commission to exempt aid to make good the damage caused by certain adverse weather conditions in fisheries from the notification requirement of Article 108(3) TFEU. Based on that empowerment, this Regulation sets clear compatibility conditions for this category of aid and defines its scope as to include aid which is granted to undertakings independently of the size of the beneficiary. |
| --- | --- |

(5)

Regulation (EU) 2015/1588 empowers the Commission to exempt aid to make good the damage caused by certain adverse weather conditions in fisheries from the notification requirement of Article 108(3) TFEU. Based on that empowerment, this Regulation sets clear compatibility conditions for this category of aid and defines its scope as to include aid which is granted to undertakings independently of the size of the beneficiary.

| (6) | The compatibility of State aid in the fishery and aquaculture sector is assessed by the Commission on the basis of the objectives of both the Competition Policy and the Common Fisheries Policy (5). In the interest of coherence with Union-financed support measures, the maximum intensity of public aid allowed under this Regulation should be equal to that fixed for the same kind of aid in Article 41 of Regulation (EU) No 2021/1139 of the European Parliament and of the Council (6). |
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(6)

The compatibility of State aid in the fishery and aquaculture sector is assessed by the Commission on the basis of the objectives of both the Competition Policy and the Common Fisheries Policy (5). In the interest of coherence with Union-financed support measures, the maximum intensity of public aid allowed under this Regulation should be equal to that fixed for the same kind of aid in Article 41 of Regulation (EU) No 2021/1139 of the European Parliament and of the Council (6).

| (7) | It is essential that no aid is granted in circumstances where Union law, and in particular rules of the Common Fisheries Policy, are not complied with. An aid may therefore only be granted by a Member State in the fishery and aquaculture sector, if the measures financed and their effects comply with Union law. Member States should ensure that beneficiaries of State aid comply with the rules of the Common Fisheries Policy. |
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(7)

It is essential that no aid is granted in circumstances where Union law, and in particular rules of the Common Fisheries Policy, are not complied with. An aid may therefore only be granted by a Member State in the fishery and aquaculture sector, if the measures financed and their effects comply with Union law. Member States should ensure that beneficiaries of State aid comply with the rules of the Common Fisheries Policy.

| (8) | This Regulation should allow for better prioritisation of State aid enforcement activities and greater simplification and should enhance transparency, effective evaluation and the control of compliance with the State aid rules at national and Union levels, while preserving the institutional competences of the Commission and the Member States. In accordance with the principle of proportionality, this Regulation does not go beyond what is necessary in order to achieve those objectives. |
| --- | --- |

(8)

This Regulation should allow for better prioritisation of State aid enforcement activities and greater simplification and should enhance transparency, effective evaluation and the control of compliance with the State aid rules at national and Union levels, while preserving the institutional competences of the Commission and the Member States. In accordance with the principle of proportionality, this Regulation does not go beyond what is necessary in order to achieve those objectives.

| (9) | The general conditions for the application of this Regulation should be defined on the basis of a set of common principles that ensure that the aid facilitates the development of an economic activity, has a clear incentive effect, is appropriate and proportionate, is granted in full transparency and subject to a control mechanism and regular evaluation and does not adversely affect trading conditions to an extent that is contrary to the common interest. |
| --- | --- |

(9)

The general conditions for the application of this Regulation should be defined on the basis of a set of common principles that ensure that the aid facilitates the development of an economic activity, has a clear incentive effect, is appropriate and proportionate, is granted in full transparency and subject to a control mechanism and regular evaluation and does not adversely affect trading conditions to an extent that is contrary to the common interest.

| (10) | Aid that fulfils all the conditions laid down in this Regulation both general and specific to the relevant categories of aid should be considered compatible with the internal market and exempted from the notification requirement laid down in Article 108(3) TFEU. |
| --- | --- |

(10)

Aid that fulfils all the conditions laid down in this Regulation both general and specific to the relevant categories of aid should be considered compatible with the internal market and exempted from the notification requirement laid down in Article 108(3) TFEU.

| (11) | State aid within the meaning of Article 107(1) TFEU not covered by this Regulation or by other Regulations adopted pursuant to Article 1 of Regulation (EU) 2015/1588 remains subject to the notification requirement of Article 108(3) TFEU. This Regulation should be without prejudice to the right of Member States to notify aid potentially covered by this Regulation. Such aid should be assessed in the light of the Guidelines for the examination of State aid in the fishery and aquaculture sector (7) or any successor guidelines. |
| --- | --- |

(11)

State aid within the meaning of Article 107(1) TFEU not covered by this Regulation or by other Regulations adopted pursuant to Article 1 of Regulation (EU) 2015/1588 remains subject to the notification requirement of Article 108(3) TFEU. This Regulation should be without prejudice to the right of Member States to notify aid potentially covered by this Regulation. Such aid should be assessed in the light of the Guidelines for the examination of State aid in the fishery and aquaculture sector (7) or any successor guidelines.

| (12) | This Regulation should not apply to aid contingent upon the use of domestic products over imported ones or aid to export-related activities. In particular, it should not apply to aid financing the establishment and operation of a distribution network in other Member States or third countries. Aid towards the cost of participating in trade fairs or of studies or consultancy services needed for the launch of a new or existing product on a new market in another Member State or third country should not normally constitute aid to export-related activities. |
| --- | --- |

(12)

This Regulation should not apply to aid contingent upon the use of domestic products over imported ones or aid to export-related activities. In particular, it should not apply to aid financing the establishment and operation of a distribution network in other Member States or third countries. Aid towards the cost of participating in trade fairs or of studies or consultancy services needed for the launch of a new or existing product on a new market in another Member State or third country should not normally constitute aid to export-related activities.

| (13) | The Commission should ensure that authorised aid does not adversely affect trading conditions to an extent that is contrary to the common interest. Therefore, aid in favour of a beneficiary which is subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market should be excluded from the scope of this Regulation, with the exception of aid schemes to make good damages caused by natural disasters or by adverse weather conditions which can be assimilated to a natural disaster. |
| --- | --- |

(13)

The Commission should ensure that authorised aid does not adversely affect trading conditions to an extent that is contrary to the common interest. Therefore, aid in favour of a beneficiary which is subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market should be excluded from the scope of this Regulation, with the exception of aid schemes to make good damages caused by natural disasters or by adverse weather conditions which can be assimilated to a natural disaster.

| (14) | Aid granted to undertakings in difficulty should in principle be excluded from the scope of this Regulation, since such aid should be assessed under the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (8). By way of exception, such aid can be granted under this Regulation in order to make good the damage caused by natural disasters or by certain adverse weather conditions. In order to provide legal certainty, it is appropriate to establish clear criteria to determine whether an undertaking is considered to be in difficulty for the purposes of this Regulation. |
| --- | --- |

(14)

Aid granted to undertakings in difficulty should in principle be excluded from the scope of this Regulation, since such aid should be assessed under the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (8). By way of exception, such aid can be granted under this Regulation in order to make good the damage caused by natural disasters or by certain adverse weather conditions. In order to provide legal certainty, it is appropriate to establish clear criteria to determine whether an undertaking is considered to be in difficulty for the purposes of this Regulation.

| (15) | State aid enforcement is highly dependent on the cooperation of Member States. Therefore, Member States should take all necessary measures to ensure compliance with this Regulation, including compliance of individual aid granted under this Regulation. |
| --- | --- |

(15)

State aid enforcement is highly dependent on the cooperation of Member States. Therefore, Member States should take all necessary measures to ensure compliance with this Regulation, including compliance of individual aid granted under this Regulation.

| (16) | In view of the need to strike the appropriate balance between minimising distortions of competition in the aided sector and the objectives of this Regulation, this Regulation should not exempt individual aid which exceeds a fixed maximum amount, whether or not made under an aid scheme exempted by this Regulation. |
| --- | --- |

(16)

In view of the need to strike the appropriate balance between minimising distortions of competition in the aided sector and the objectives of this Regulation, this Regulation should not exempt individual aid which exceeds a fixed maximum amount, whether or not made under an aid scheme exempted by this Regulation.

| (17) | For the purpose of transparency, equal treatment and effective monitoring, this Regulation should apply only to aid in respect of which it is possible to calculate precisely the gross grant equivalent ex ante without the need to undertake a risk assessment (‘transparent aid’). |
| --- | --- |

(17)

For the purpose of transparency, equal treatment and effective monitoring, this Regulation should apply only to aid in respect of which it is possible to calculate precisely the gross grant equivalent ex ante without the need to undertake a risk assessment (‘transparent aid’).

| (18) | This Regulation should define the conditions under which certain specific aid instruments, such as loans, guarantees, tax measures, and, in particular, repayable advances may be considered transparent. Aid comprised in guarantees should be considered as transparent, if the gross grant equivalent has been calculated on the basis of safe-harbour premiums laid down for the respective type of undertaking. In the case of SMEs, the Commission Notice on the application of Articles 87 and 88 of the EC Treaty to State aid in the form of guarantees (9) indicates levels of annual premium above which a State guarantee would be deemed not to constitute aid. For the purposes of this Regulation, capital injections and risk capital measures should not be considered transparent aid. |
| --- | --- |

(18)

This Regulation should define the conditions under which certain specific aid instruments, such as loans, guarantees, tax measures, and, in particular, repayable advances may be considered transparent. Aid comprised in guarantees should be considered as transparent, if the gross grant equivalent has been calculated on the basis of safe-harbour premiums laid down for the respective type of undertaking. In the case of SMEs, the Commission Notice on the application of Articles 87 and 88 of the EC Treaty to State aid in the form of guarantees (9) indicates levels of annual premium above which a State guarantee would be deemed not to constitute aid. For the purposes of this Regulation, capital injections and risk capital measures should not be considered transparent aid.

| (19) | In order to ensure that the aid is necessary and acts as an incentive to further develop activities or projects, this Regulation should not apply to aid for activities in which the beneficiary would in any case engage even in the absence of the aid. Aid should only be exempted from notification requirement of Article 108(3) TFEU in accordance with this Regulation, where the activity or the work on the aided project starts after the beneficiary has submitted a written application for the aid. |
| --- | --- |

(19)

In order to ensure that the aid is necessary and acts as an incentive to further develop activities or projects, this Regulation should not apply to aid for activities in which the beneficiary would in any case engage even in the absence of the aid. Aid should only be exempted from notification requirement of Article 108(3) TFEU in accordance with this Regulation, where the activity or the work on the aided project starts after the beneficiary has submitted a written application for the aid.

| (20) | Automatic aid schemes in the form of tax advantages should continue to be subject to a specific condition concerning the incentive effect, due to the fact that this kind of aid is granted under different procedures than other categories of aid. Such schemes should already have been adopted before work on the aided project or activity started. However, this condition should not apply in the case of fiscal successor schemes provided the activity was already covered by the previous fiscal schemes in the form of tax advantages. For the assessment of the incentive effect of such schemes, the crucial moment is the moment when the tax measure was set out for the first time in the original scheme, which is then replaced by the successor scheme. |
| --- | --- |

(20)

Automatic aid schemes in the form of tax advantages should continue to be subject to a specific condition concerning the incentive effect, due to the fact that this kind of aid is granted under different procedures than other categories of aid. Such schemes should already have been adopted before work on the aided project or activity started. However, this condition should not apply in the case of fiscal successor schemes provided the activity was already covered by the previous fiscal schemes in the form of tax advantages. For the assessment of the incentive effect of such schemes, the crucial moment is the moment when the tax measure was set out for the first time in the original scheme, which is then replaced by the successor scheme.

| (21) | For the calculation of aid intensity, only eligible costs should be included. This Regulation should not exempt aid which exceeds the relevant aid intensity as a result of including ineligible costs. The identification of eligible costs should be supported by clear, specific and up-to date documentary evidence. All figures used should be taken before any deduction of tax or other charges. Aid payable in several instalments should be discounted to its value on the date of granting the aid. The eligible costs should also be discounted to their value on the date of granting. The interest rate to be used for discounting purposes and for calculating the amount of aid in the case of aid which does not take the form of a grant should be respectively the discount rate and the reference rate applicable at the time of the grant, as laid down in the Commission Communication on the revision of the method for setting the reference and discount rates (10). Where aid is granted by means of tax advantages, aid tranches should be discounted on the basis of the discount rates applicable on the various dates when the tax advantages become effective. The use of aid in the form of repayable advances should be promoted, since such risk-sharing instruments are conducive to strengthened incentive effect of aid. It is therefore appropriate to establish that where aid is granted in the form of repayable advances the applicable aid intensities referred to in this Regulation may be increased. |
| --- | --- |

(21)

For the calculation of aid intensity, only eligible costs should be included. This Regulation should not exempt aid which exceeds the relevant aid intensity as a result of including ineligible costs. The identification of eligible costs should be supported by clear, specific and up-to date documentary evidence. All figures used should be taken before any deduction of tax or other charges. Aid payable in several instalments should be discounted to its value on the date of granting the aid. The eligible costs should also be discounted to their value on the date of granting. The interest rate to be used for discounting purposes and for calculating the amount of aid in the case of aid which does not take the form of a grant should be respectively the discount rate and the reference rate applicable at the time of the grant, as laid down in the Commission Communication on the revision of the method for setting the reference and discount rates (10). Where aid is granted by means of tax advantages, aid tranches should be discounted on the basis of the discount rates applicable on the various dates when the tax advantages become effective. The use of aid in the form of repayable advances should be promoted, since such risk-sharing instruments are conducive to strengthened incentive effect of aid. It is therefore appropriate to establish that where aid is granted in the form of repayable advances the applicable aid intensities referred to in this Regulation may be increased.

| (22) | In the case of tax advantages on future taxes, the applicable discount rate and the exact amount of the aid tranches may not be known in advance. In such cases, Member States should set in advance a cap on the discounted value of the aid respecting the applicable aid intensity. Subsequently, when the amount of the aid tranche at a given date becomes known, discounting can take place on the basis of the discount rate applicable at that time. The discounted value of each aid tranche should be deducted from the overall amount of the cap (‘capped amount’). |
| --- | --- |

(22)

In the case of tax advantages on future taxes, the applicable discount rate and the exact amount of the aid tranches may not be known in advance. In such cases, Member States should set in advance a cap on the discounted value of the aid respecting the applicable aid intensity. Subsequently, when the amount of the aid tranche at a given date becomes known, discounting can take place on the basis of the discount rate applicable at that time. The discounted value of each aid tranche should be deducted from the overall amount of the cap (‘capped amount’).

| (23) | To determine whether the notification thresholds and the maximum aid intensities referred to in this Regulation are respected, the total amount of State aid for the aided activity or project should be taken into account. Moreover, this Regulation should specify the circumstances under which different categories of aid may be cumulated. Aid exempted by this Regulation and any other compatible aid exempted under other regulations or approved by the Commission may be cumulated as long as those measures concern different identifiable eligible costs. Where different sources of aid are related to the same – partly or fully overlapping – identifiable eligible costs, cumulation should be allowed up to the highest aid intensity or aid amount applicable to that aid under this Regulation. This Regulation should also set out special rules for cumulation of aid measures with de minimis aid. De minimis aid is often not granted for or attributable to specific identifiable eligible costs. In such a case, it should be possible to freely cumulate de minimis aid with State aid exempted under this Regulation. Where, however, de minimis aid is granted for the same identifiable eligible costs as State aid exempted under this Regulation, cumulation should only be allowed up to the maximum aid intensity as referred to in Chapter III of this Regulation. |
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(23)

To determine whether the notification thresholds and the maximum aid intensities referred to in this Regulation are respected, the total amount of State aid for the aided activity or project should be taken into account. Moreover, this Regulation should specify the circumstances under which different categories of aid may be cumulated. Aid exempted by this Regulation and any other compatible aid exempted under other regulations or approved by the Commission may be cumulated as long as those measures concern different identifiable eligible costs. Where different sources of aid are related to the same – partly or fully overlapping – identifiable eligible costs, cumulation should be allowed up to the highest aid intensity or aid amount applicable to that aid under this Regulation. This Regulation should also set out special rules for cumulation of aid measures with de minimis aid. De minimis aid is often not granted for or attributable to specific identifiable eligible costs. In such a case, it should be possible to freely cumulate de minimis aid with State aid exempted under this Regulation. Where, however, de minimis aid is granted for the same identifiable eligible costs as State aid exempted under this Regulation, cumulation should only be allowed up to the maximum aid intensity as referred to in Chapter III of this Regulation.

| (24) | Given that State aid within the meaning of Article 107(1) TFEU is, in principle, prohibited, it is important to be able to check whether an aid is granted in compliance with the applicable rules. Transparency of State aid is, therefore, essential for the correct application of Treaty rules and leads to better compliance, greater accountability, peer review and ultimately more effective public spending. To ensure transparency, Member States should be required to establish comprehensive State aid websites, at regional or national level, setting out summary information about each aid measure exempted under this Regulation. That obligation should be a condition for the compatibility of the individual aid with the internal market. Following the standard practice regarding publication of information in Directive (EU) 2019/1024 of the European Parliament and the Council (11), a standard format should be used which allows the information to be searched, downloaded and easily published on the Internet. The links to the State aid websites of all the Member States should be published on the Commission’s website. In accordance with Article 3 of Regulation (EU) 2015/1588, summary information on each measure exempted under this Regulation should be published on the website of the Commission. |
| --- | --- |

(24)

Given that State aid within the meaning of Article 107(1) TFEU is, in principle, prohibited, it is important to be able to check whether an aid is granted in compliance with the applicable rules. Transparency of State aid is, therefore, essential for the correct application of Treaty rules and leads to better compliance, greater accountability, peer review and ultimately more effective public spending. To ensure transparency, Member States should be required to establish comprehensive State aid websites, at regional or national level, setting out summary information about each aid measure exempted under this Regulation. That obligation should be a condition for the compatibility of the individual aid with the internal market. Following the standard practice regarding publication of information in Directive (EU) 2019/1024 of the European Parliament and the Council (11), a standard format should be used which allows the information to be searched, downloaded and easily published on the Internet. The links to the State aid websites of all the Member States should be published on the Commission’s website. In accordance with Article 3 of Regulation (EU) 2015/1588, summary information on each measure exempted under this Regulation should be published on the website of the Commission.

| (25) | To ensure effective monitoring of aid measures in accordance with Regulation (EU) 2015/1588, it is appropriate to establish requirements regarding the reporting by the Member States of aid measures which have been exempted pursuant to this Regulation and the application of this Regulation. Moreover, it is appropriate to establish rules concerning the records that Member States should keep regarding the aid exempted by this Regulation, in light of the limitation period established in Article 17 of Council Regulation (EU) 2015/1589 (12). Finally, each individual aid should contain an express reference to this Regulation. |
| --- | --- |

(25)

To ensure effective monitoring of aid measures in accordance with Regulation (EU) 2015/1588, it is appropriate to establish requirements regarding the reporting by the Member States of aid measures which have been exempted pursuant to this Regulation and the application of this Regulation. Moreover, it is appropriate to establish rules concerning the records that Member States should keep regarding the aid exempted by this Regulation, in light of the limitation period established in Article 17 of Council Regulation (EU) 2015/1589 (12). Finally, each individual aid should contain an express reference to this Regulation.

| (26) | To enforce the effectiveness of compatibility conditions set out in this Regulation, it should be possible for the Commission to withdraw the benefit of the block exemption for future aid measures in the event of failure to comply with these requirements. The Commission should be able to restrict the withdrawal of the benefit of the block exemption to certain types of aid, certain beneficiaries or aid measures adopted by certain authorities, where non-compliance with this Regulation affects only a limited group of measures or certain authorities. Such a targeted withdrawal should provide a proportionate remedy directly linked to the identified non-compliance with this Regulation. In case of failure to meet compatibility conditions set out in Chapters I and III, aid granted will not be covered by this Regulation and, as a consequence, will constitute unlawful aid, which the Commission will examine in the framework of the relevant procedure as set out in Regulation (EU) 2015/1588. In case of failure to fulfil the requirements of Chapter II, the withdrawal of the benefit of the block exemption in respect of the future aid measures does not affect the fact that the past measures complying with this Regulation were block exempted. |
| --- | --- |

(26)

To enforce the effectiveness of compatibility conditions set out in this Regulation, it should be possible for the Commission to withdraw the benefit of the block exemption for future aid measures in the event of failure to comply with these requirements. The Commission should be able to restrict the withdrawal of the benefit of the block exemption to certain types of aid, certain beneficiaries or aid measures adopted by certain authorities, where non-compliance with this Regulation affects only a limited group of measures or certain authorities. Such a targeted withdrawal should provide a proportionate remedy directly linked to the identified non-compliance with this Regulation. In case of failure to meet compatibility conditions set out in Chapters I and III, aid granted will not be covered by this Regulation and, as a consequence, will constitute unlawful aid, which the Commission will examine in the framework of the relevant procedure as set out in Regulation (EU) 2015/1588. In case of failure to fulfil the requirements of Chapter II, the withdrawal of the benefit of the block exemption in respect of the future aid measures does not affect the fact that the past measures complying with this Regulation were block exempted.

| (27) | To eliminate differences that might give rise to distortions of competition and to facilitate coordination between different Union and national initiatives concerning SMEs, as well as for reasons of administrative and legal certainty, the definition of SMEs used for the purpose of this Regulation should be based on the definition in Commission Recommendation 2003/361/EC (13). |
| --- | --- |

(27)

To eliminate differences that might give rise to distortions of competition and to facilitate coordination between different Union and national initiatives concerning SMEs, as well as for reasons of administrative and legal certainty, the definition of SMEs used for the purpose of this Regulation should be based on the definition in Commission Recommendation 2003/361/EC (13).

| (28) | This Regulation should cover types of aid granted in the fishery and aquaculture sector which have been systematically approved by the Commission in the past. This aid should not require a case-by-case assessment of its compatibility with the internal market from the Commission, provided that it complies with the conditions laid down in Regulation (EU) No 2021/1139 and the Common Fisheries Policy. |
| --- | --- |

(28)

This Regulation should cover types of aid granted in the fishery and aquaculture sector which have been systematically approved by the Commission in the past. This aid should not require a case-by-case assessment of its compatibility with the internal market from the Commission, provided that it complies with the conditions laid down in Regulation (EU) No 2021/1139 and the Common Fisheries Policy.

| (29) | In accordance with Article 107(2), point (b), TFEU, aid to make good the damage caused by natural disasters is compatible with the internal market. In order to provide legal certainty, it is necessary to define the type of the events that may constitute a natural disaster exempted by this Regulation. For the purposes of this Regulation, earthquakes, landslides, floods, in particular floods brought about by waters overflowing river banks or lake shores, avalanches, tornadoes, hurricanes, volcanic eruptions and wildfires of natural origin should be considered events constituting a natural disaster. |
| --- | --- |

(29)

In accordance with Article 107(2), point (b), TFEU, aid to make good the damage caused by natural disasters is compatible with the internal market. In order to provide legal certainty, it is necessary to define the type of the events that may constitute a natural disaster exempted by this Regulation. For the purposes of this Regulation, earthquakes, landslides, floods, in particular floods brought about by waters overflowing river banks or lake shores, avalanches, tornadoes, hurricanes, volcanic eruptions and wildfires of natural origin should be considered events constituting a natural disaster.

| (30) | Fishery and aquaculture are sectors, which are specifically exposed to adverse weather conditions and animal diseases. Experience shows that these sectors are hit extraordinarily by such events and that fishers suffer considerable damage from them. Measures to adequately insure and compensate such damage are considered to be a suitable tool to help undertakings recover from such damage and, thus, to remain in business and in that way to ensure the development of economic activities in those sectors. |
| --- | --- |

(30)

Fishery and aquaculture are sectors, which are specifically exposed to adverse weather conditions and animal diseases. Experience shows that these sectors are hit extraordinarily by such events and that fishers suffer considerable damage from them. Measures to adequately insure and compensate such damage are considered to be a suitable tool to help undertakings recover from such damage and, thus, to remain in business and in that way to ensure the development of economic activities in those sectors.

| (31) | Damage caused by adverse weather conditions such as storms, frost, hail, ice, rain or drought, which occur on a more regular basis, should not be considered a natural disaster within the meaning of Article 107(2), point (b), TFEU. Nevertheless, to the extent that their impact on the economic activity is such that they can be assimilated to a natural disaster, aid to make good damage caused by adverse weather conditions should be considered as compatible with the internal market pursuant to Article 107(3), point (c), TFEU. |
| --- | --- |

(31)

Damage caused by adverse weather conditions such as storms, frost, hail, ice, rain or drought, which occur on a more regular basis, should not be considered a natural disaster within the meaning of Article 107(2), point (b), TFEU. Nevertheless, to the extent that their impact on the economic activity is such that they can be assimilated to a natural disaster, aid to make good damage caused by adverse weather conditions should be considered as compatible with the internal market pursuant to Article 107(3), point (c), TFEU.

| (32) | In order to ensure that the exemption covers indeed aid granted to make good the damage caused by natural disasters and adverse weather conditions that can be assimilated to a natural disaster, this Regulation should lay down, following established practice, the conditions under which such aid schemes may benefit from that block exemption. Those conditions should relate, in particular, to the formal recognition by the competent Member States’ authorities of the character of the event as a natural disaster or adverse weather conditions that can be assimilated to a natural disaster and to a direct causal link between the natural disaster and the damages suffered by the beneficiary undertaking, which may include undertakings in difficulty, and should ensure that overcompensation is avoided. The compensation should not exceed what is necessary to enable the beneficiary to return to the situation prevailing before the event occurred. |
| --- | --- |

(32)

In order to ensure that the exemption covers indeed aid granted to make good the damage caused by natural disasters and adverse weather conditions that can be assimilated to a natural disaster, this Regulation should lay down, following established practice, the conditions under which such aid schemes may benefit from that block exemption. Those conditions should relate, in particular, to the formal recognition by the competent Member States’ authorities of the character of the event as a natural disaster or adverse weather conditions that can be assimilated to a natural disaster and to a direct causal link between the natural disaster and the damages suffered by the beneficiary undertaking, which may include undertakings in difficulty, and should ensure that overcompensation is avoided. The compensation should not exceed what is necessary to enable the beneficiary to return to the situation prevailing before the event occurred.

| (33) | Fishery and aquaculture are sectors where there is insufficient incentive for individual action to occur, despite the fact that the result of individual action combined would correspond to the common good of all users. For this reason aid to protect and restore marine biodiversity and ecoystems and compensation regimes in the framework of sustainable fishing activities, including waste collection from the sea, should be considered as compatible with the internal market pursuant to Article 107(3), point (c), TFEU. |
| --- | --- |

(33)

Fishery and aquaculture are sectors where there is insufficient incentive for individual action to occur, despite the fact that the result of individual action combined would correspond to the common good of all users. For this reason aid to protect and restore marine biodiversity and ecoystems and compensation regimes in the framework of sustainable fishing activities, including waste collection from the sea, should be considered as compatible with the internal market pursuant to Article 107(3), point (c), TFEU.

| (34) | In the light of the Commission’s experience in this area, State aid policy should periodically be revised. The period of application of this Regulation should therefore be limited and transitional provisions should be laid down. Having regard to the fact that the conditions for granting aid under this Regulation are closely linked with the conditions established for the application of Regulation (EU) No 2021/1139 which establishes the European Maritime, Fisheries and Aquaculture Fund (EMFAF) for the period between 1 January 2021 and 31 December 2027, it is appropriate to align the period of application of this Regulation with that of the EMFAF. |
| --- | --- |

(34)

In the light of the Commission’s experience in this area, State aid policy should periodically be revised. The period of application of this Regulation should therefore be limited and transitional provisions should be laid down. Having regard to the fact that the conditions for granting aid under this Regulation are closely linked with the conditions established for the application of Regulation (EU) No 2021/1139 which establishes the European Maritime, Fisheries and Aquaculture Fund (EMFAF) for the period between 1 January 2021 and 31 December 2027, it is appropriate to align the period of application of this Regulation with that of the EMFAF.

| (35) | Should this Regulation expire without being extended, aid schemes already exempted under this Regulation should continue to be exempted for six months, |
| --- | --- |

(35)

Should this Regulation expire without being extended, aid schemes already exempted under this Regulation should continue to be exempted for six months,

HAS ADOPTED THIS REGULATION:

CHAPTER I

COMMON PROVISIONS

Article 1

Scope

1.   This Regulation shall apply to aid granted to small and medium-sized enterprises (SMEs) active in the production, processing or marketing of fishery and aquaculture products.

2.   This Regulation shall also apply to aid granted any enterprise active in the production, processing or marketing of fishery and aquaculture products to make good the damage caused by natural disasters in accordance with Article 46 or by certain adverse weather conditions in accordance with Article 47 independently of the size of the beneficiary of the aid.

3.   This Regulation shall not apply to:

| (a) | aid the amount of which is fixed on the basis of price or quantity of products put on the market; |
| --- | --- |

(a)

aid the amount of which is fixed on the basis of price or quantity of products put on the market;

| (b) | aid to export-related activities towards third countries or Member States, namely aid directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current costs linked to the export activity; |
| --- | --- |

(b)

aid to export-related activities towards third countries or Member States, namely aid directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current costs linked to the export activity;

| (c) | aid contingent upon the use of domestic over imported goods; |
| --- | --- |

(c)

aid contingent upon the use of domestic over imported goods;

| (d) | aid granted to undertakings in difficulty, with the exception of aid to make good the damage caused by natural disasters or by adverse weather conditions which can be assimilated to a natural disaster; |
| --- | --- |

(d)

aid granted to undertakings in difficulty, with the exception of aid to make good the damage caused by natural disasters or by adverse weather conditions which can be assimilated to a natural disaster;

| (e) | aid schemes which do not explicitly exclude the payment of individual aid in favour of an undertaking which is subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market, with the exception of aid schemes to make good the damage caused by natural disasters or by adverse weather conditions which can be assimilated to a natural disaster; |
| --- | --- |

(e)

aid schemes which do not explicitly exclude the payment of individual aid in favour of an undertaking which is subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market, with the exception of aid schemes to make good the damage caused by natural disasters or by adverse weather conditions which can be assimilated to a natural disaster;

| (f) | ad hoc aid in favour of an undertaking as referred to in point (e); |
| --- | --- |

(f)

ad hoc aid in favour of an undertaking as referred to in point (e);

| (g) | aid granted to operations which would have been ineligible for support under Article 13 of Regulation (EU) 2021/1139; |
| --- | --- |

(g)

aid granted to operations which would have been ineligible for support under Article 13 of Regulation (EU) 2021/1139;

| (h) | aid granted to undertakings whose application for support from the EMFAF is inadmissible on the grounds set out in Article 11(1) and (3) of Regulation (EU) 2021/1139. |
| --- | --- |

(h)

aid granted to undertakings whose application for support from the EMFAF is inadmissible on the grounds set out in Article 11(1) and (3) of Regulation (EU) 2021/1139.

4.   This Regulation shall not apply to State aid measures, which entail, by themselves, by the conditions attached to them or by their financing method a non-severable violation of Union law, in particular:

| (a) | aid where the grant of aid is subject to the obligation for the beneficiary to have its headquarters in the relevant Member State or to be predominantly established in that Member State. However, the requirement to have an establishment or branch in the aid granting Member State at the moment of payment of the aid is allowed; |
| --- | --- |

(a)

aid where the grant of aid is subject to the obligation for the beneficiary to have its headquarters in the relevant Member State or to be predominantly established in that Member State. However, the requirement to have an establishment or branch in the aid granting Member State at the moment of payment of the aid is allowed;

| (b) | aid where the grant of aid is subject to the obligation for the beneficiary to use nationally produced goods or national services; |
| --- | --- |

(b)

aid where the grant of aid is subject to the obligation for the beneficiary to use nationally produced goods or national services;

| (c) | aid restricting the possibility for the beneficiaries to exploit the research, development and innovation results in other Member States. |
| --- | --- |

(c)

aid restricting the possibility for the beneficiaries to exploit the research, development and innovation results in other Member States.

Article 2

Definitions

For the purpose of this Regulation the following definitions shall apply:

| (1) | ‘ad hoc aid’ means aid not granted on the basis of an aid scheme; |
| --- | --- |

(1)

‘ad hoc aid’ means aid not granted on the basis of an aid scheme;

| (2) | ‘aid’ means any measure fulfilling all the criteria laid down in Article 107(1) TFEU; |
| --- | --- |

(2)

‘aid’ means any measure fulfilling all the criteria laid down in Article 107(1) TFEU;

| (3) | ‘aid intensity’ means the gross aid amount expressed as a percentage of the eligible costs, before any deduction of tax or other charge; |
| --- | --- |

(3)

‘aid intensity’ means the gross aid amount expressed as a percentage of the eligible costs, before any deduction of tax or other charge;

| (4) | ‘aid scheme’ means any act on the basis of which, without further implementing measures being required, individual aid awards may be made to undertakings defined within the act in a general and abstract manner and any act on the basis of which aid which is not linked to a specific project may be granted to one or several undertakings for an indefinite period of time and/or for an indefinite amount; |
| --- | --- |

(4)

‘aid scheme’ means any act on the basis of which, without further implementing measures being required, individual aid awards may be made to undertakings defined within the act in a general and abstract manner and any act on the basis of which aid which is not linked to a specific project may be granted to one or several undertakings for an indefinite period of time and/or for an indefinite amount;

| (5) | ‘date of granting the aid’ means the date when the legal right to receive the aid is conferred on the beneficiary under the applicable national legal regime. |
| --- | --- |

(5)

‘date of granting the aid’ means the date when the legal right to receive the aid is conferred on the beneficiary under the applicable national legal regime.

| (6) | ‘fiscal successor scheme’ means a scheme in the form of tax advantages which constitutes an amended version of a previously existing scheme in the form of tax advantages and which replaces it; |
| --- | --- |

(6)

‘fiscal successor scheme’ means a scheme in the form of tax advantages which constitutes an amended version of a previously existing scheme in the form of tax advantages and which replaces it;

| (7) | ‘fishery and aquaculture products’ means the products defined in Annex I of Regulation (EU) No 1379/2013 of the European Parliament and of the Council (14); |
| --- | --- |

(7)

‘fishery and aquaculture products’ means the products defined in Annex I of Regulation (EU) No 1379/2013 of the European Parliament and of the Council (14);

| (8) | ‘gross grant equivalent’ means the amount of the aid if it had been provided in the form of a grant to the beneficiary, before any deduction of tax or other charges; |
| --- | --- |

(8)

‘gross grant equivalent’ means the amount of the aid if it had been provided in the form of a grant to the beneficiary, before any deduction of tax or other charges;

| (9) | ‘individual aid’ means:






  (a) | ad hoc aid; |
| --- | --- | --- |

(9)

‘individual aid’ means:

(a)

ad hoc aid;

| (b) | awards of aid to individual beneficiaries on the basis of an aid scheme; |
| --- | --- |

(b)

awards of aid to individual beneficiaries on the basis of an aid scheme;

| (10) | ‘natural disasters’ means earthquakes, avalanches, landslides, floods, tornadoes, hurricanes, volcanic eruptions and wild fires of natural origin; |
| --- | --- |

(10)

‘natural disasters’ means earthquakes, avalanches, landslides, floods, tornadoes, hurricanes, volcanic eruptions and wild fires of natural origin;

| (11) | ‘protected animal’ means any animal protected either by Union or by national legislation; |
| --- | --- |

(11)

‘protected animal’ means any animal protected either by Union or by national legislation;

| (12) | ‘repayable advance’ means a loan for a project which is paid in one or more instalments and the conditions for the reimbursement of which depend on the outcome of the project; |
| --- | --- |

(12)

‘repayable advance’ means a loan for a project which is paid in one or more instalments and the conditions for the reimbursement of which depend on the outcome of the project;

| (13) | ‘small and medium-sized enterprises (SMEs)’ means undertakings fulfilling the criteria laid down in Annex I; |
| --- | --- |

(13)

‘small and medium-sized enterprises (SMEs)’ means undertakings fulfilling the criteria laid down in Annex I;

| (14) | ‘start of works’ means the earlier of either the start of construction works relating to the investment, or the first legally binding commitment to order equipment or any other commitment that makes the investment irreversible. Buying land and preparatory works such as obtaining permits and conducting feasibility studies are not considered start of works. For take-overs, ‘start of works’ means the moment of acquiring assets directly linked to the acquired establishment; |
| --- | --- |

(14)

‘start of works’ means the earlier of either the start of construction works relating to the investment, or the first legally binding commitment to order equipment or any other commitment that makes the investment irreversible. Buying land and preparatory works such as obtaining permits and conducting feasibility studies are not considered start of works. For take-overs, ‘start of works’ means the moment of acquiring assets directly linked to the acquired establishment;

| (15) | ‘undertaking in difficulty’ means an undertaking in respect of which at least one of the following circumstances occurs:






  (a) | in the case of a limited liability company (other than an SME that has been in existence for less than three years), where more than half of its subscribed share capital has disappeared as a result of accumulated losses. This is the case when deduction of accumulated losses from reserves (and all other elements generally considered as part of the own funds of the company) leads to a negative cumulative amount that exceeds half of the subscribed share capital. For the purposes of this definition, ‘limited liability company’ refers in particular to the types of company mentioned in Annex I to Directive 2013/34/EU of the European Parliament and of the Council (15) and ‘share capital’ includes, where relevant, any share premium; |
| --- | --- | --- |

(15)

‘undertaking in difficulty’ means an undertaking in respect of which at least one of the following circumstances occurs:

(a)

in the case of a limited liability company (other than an SME that has been in existence for less than three years), where more than half of its subscribed share capital has disappeared as a result of accumulated losses. This is the case when deduction of accumulated losses from reserves (and all other elements generally considered as part of the own funds of the company) leads to a negative cumulative amount that exceeds half of the subscribed share capital. For the purposes of this definition, ‘limited liability company’ refers in particular to the types of company mentioned in Annex I to Directive 2013/34/EU of the European Parliament and of the Council (15) and ‘share capital’ includes, where relevant, any share premium;

| (b) | in the case of a company where at least some members have unlimited liability for the debt of the company (other than an SME that has been in existence for less than three years), where more than half of its capital as shown in the company accounts has disappeared as a result of accumulated losses. For the purposes of this definition, ‘a company where at least some members have unlimited liability for the debt of the company’ refers in particular to the types of company mentioned in Annex II to Directive 2013/34/EU; |
| --- | --- |

(b)

in the case of a company where at least some members have unlimited liability for the debt of the company (other than an SME that has been in existence for less than three years), where more than half of its capital as shown in the company accounts has disappeared as a result of accumulated losses. For the purposes of this definition, ‘a company where at least some members have unlimited liability for the debt of the company’ refers in particular to the types of company mentioned in Annex II to Directive 2013/34/EU;

| (c) | where the undertaking is subject to collective insolvency proceedings or fulfils the criteria under its domestic law for being placed in collective insolvency proceedings at the request of its creditors; |
| --- | --- |

(c)

where the undertaking is subject to collective insolvency proceedings or fulfils the criteria under its domestic law for being placed in collective insolvency proceedings at the request of its creditors;

| (d) | where the undertaking has received rescue aid and has not yet reimbursed the loan or terminated the guarantee, or has received restructuring aid and is still subject to a restructuring plan. |
| --- | --- |

(d)

where the undertaking has received rescue aid and has not yet reimbursed the loan or terminated the guarantee, or has received restructuring aid and is still subject to a restructuring plan.

Article 3

Notification threshold

1.   This Regulation shall not apply to individual aid for any project with eligible costs in excess of EUR 2 million, or where the gross grant equivalent of the aid exceeds EUR 1 million per beneficiary per year.

2.   The thresholds set out in paragraph 1 shall not be circumvented by artificially splitting up the aid schemes or aid projects.

Article 4

Conditions for exemption

1.   Aid schemes, individual aid granted under aid schemes and ad hoc aid shall be compatible with the internal market within the meaning of Article 107(2) or (3) TFEU and shall be exempted from the notification requirement of Article 108(3) TFEU provided that such aids fulfil the conditions laid down in Chapter I of this Regulation, as well as the specific conditions for the relevant category of aid laid down in Chapter III of this Regulation.

2.   Aid measures shall only be exempted under this Regulation as far as they explicitly provide that, during the grant period and up until five years after the final payment, the beneficiaries of the aid shall comply with the rules of the Common Fisheries Policy.

Article 5

Transparency of aid

1.   This Regulation shall apply only to aid in respect of which it is possible to calculate precisely the gross grant equivalent of the aid ex ante without any need to undertake a risk assessment (‘transparent aid’).

2.   The following categories of aid shall be considered to be transparent:

| (a) | aid comprised in grants and interest rate subsidies; |
| --- | --- |

(a)

aid comprised in grants and interest rate subsidies;

| (b) | aid comprised in loans where the gross grant equivalent has been calculated on the basis of the reference rate prevailing at the time of the grant; |
| --- | --- |

(b)

aid comprised in loans where the gross grant equivalent has been calculated on the basis of the reference rate prevailing at the time of the grant;

| (c) | aid comprised in guarantees:






  (i) | where the gross grant equivalent has been calculated on the basis of safe-harbour premiums laid down in a Commission notice; or |
| --- | --- | --- |

(c)

aid comprised in guarantees:

(i)

where the gross grant equivalent has been calculated on the basis of safe-harbour premiums laid down in a Commission notice; or

| (ii) | where before the implementation of the measure, the methodology to calculate the gross grant equivalent of the guarantee has been accepted on the basis of the Commission Notice on the application of Articles 87 and 88 of the EC Treaty to State aid in the form of guarantees, or any successor notice, following notification of that methodology to the Commission under any regulation adopted by the Commission in the State aid area applicable at the time, and the approved methodology explicitly addresses the type of guarantee and the type of underlying transaction at stake in the context of the application of this Regulation; |
| --- | --- |

(ii)

where before the implementation of the measure, the methodology to calculate the gross grant equivalent of the guarantee has been accepted on the basis of the Commission Notice on the application of Articles 87 and 88 of the EC Treaty to State aid in the form of guarantees, or any successor notice, following notification of that methodology to the Commission under any regulation adopted by the Commission in the State aid area applicable at the time, and the approved methodology explicitly addresses the type of guarantee and the type of underlying transaction at stake in the context of the application of this Regulation;

| (d) | aid in the form of tax advantages, where the measure provides for a cap ensuring that the applicable threshold is not exceeded; |
| --- | --- |

(d)

aid in the form of tax advantages, where the measure provides for a cap ensuring that the applicable threshold is not exceeded;

| (e) | aid in the form of repayable advances, if the total nominal amount of the repayable advance does not exceed the thresholds applicable under this Regulation or if, before implementation of the measure, the methodology to calculate the gross grant equivalent of the repayable advance has been accepted following its notification to the Commission. |
| --- | --- |

(e)

aid in the form of repayable advances, if the total nominal amount of the repayable advance does not exceed the thresholds applicable under this Regulation or if, before implementation of the measure, the methodology to calculate the gross grant equivalent of the repayable advance has been accepted following its notification to the Commission.

3.   For the purposes of this Regulation, the following categories of aid shall not be considered to be transparent aid:

| (a) | aid comprised in capital injections; |
| --- | --- |

(a)

aid comprised in capital injections;

| (b) | aid comprised in risk finance measures. |
| --- | --- |

(b)

aid comprised in risk finance measures.

Article 6

Incentive effect

1.   This Regulation shall apply only to aid which has an incentive effect.

2.   Aid shall be considered to have an incentive effect, if the beneficiary has submitted a written application for the aid to the Member State concerned before work on the project or activity starts. The application for the aid shall contain at least the following information:

| (a) | undertaking’s name and size; |
| --- | --- |

(a)

undertaking’s name and size;

| (b) | description of the project or activity, including its start and end dates; |
| --- | --- |

(b)

description of the project or activity, including its start and end dates;

| (c) | location of the project or activity; |
| --- | --- |

(c)

location of the project or activity;

| (d) | list of eligible costs; |
| --- | --- |

(d)

list of eligible costs;

| (e) | type of aid (grant, loan, guarantee, repayable advance or other) and amount of public funding needed for the project or activity. |
| --- | --- |

(e)

type of aid (grant, loan, guarantee, repayable advance or other) and amount of public funding needed for the project or activity.

3.   Measures in the form of tax advantages shall be deemed to have an incentive effect, if the following conditions are fulfilled:

| (a) | the measure establishes a right to aid in accordance with objective criteria and without further exercise of discretion by the Member State; and |
| --- | --- |

(a)

the measure establishes a right to aid in accordance with objective criteria and without further exercise of discretion by the Member State; and

| (b) | the measure has been adopted and is in force before work on the aided project or activity has started. This requirement shall not apply in the case of fiscal successor schemes, provided the activity was already covered by the previous schemes in the form of tax advantages. |
| --- | --- |

(b)

the measure has been adopted and is in force before work on the aided project or activity has started. This requirement shall not apply in the case of fiscal successor schemes, provided the activity was already covered by the previous schemes in the form of tax advantages.

4.   The aid to make good the damage caused by natural disasters, by adverse weather conditions which can be assimilated to a natural disaster or by protected animals shall not be required to have an incentive effect or shall be deemed to have such effect, if the conditions laid down in Articles 44, 45 and 46 are fulfilled.

Article 7

Aid intensity and eligible costs

1.   For the purpose of calculating aid intensity and eligible costs, all figures used shall be taken before any deduction of tax or other charge. The eligible costs shall be supported by documentary evidence which shall be clear, specific and contemporary. Value added tax (VAT) shall not be eligible for aid, except where it is non-recoverable under national legislation.

2.   Where aid is granted in a form other than a grant, the aid amount shall be the gross grant equivalent of the aid.

3.   Aid payable in several instalments shall be discounted to its value on the date of granting the aid. The eligible costs shall be discounted to their value on the date of granting the aid. The interest rate to be used for discounting purposes shall be the discount rate applicable on the date of granting the aid.

4.   Where aid is granted by means of tax advantages discounting of aid tranches shall take place on the basis of the discount rates applicable on the various dates when the tax advantage takes effect.

5.   Where aid is granted in the form of repayable advances which, in the absence of an accepted methodology to calculate their gross grant equivalent, are expressed as a percentage of the eligible costs and the measure provides that in case of a successful outcome of the project, as defined on the basis of a reasonable and prudent hypothesis, the advances will be repaid with an interest rate at least equal to the discount rate applicable on the date of granting the aid, the maximum aid intensities laid down in Chapter III may be increased by 10 percentage points without exceeding a maximum aid intensity rate of 100 % of the total eligible expenditure of the operation.

6.   The eligible costs shall comply with the requirements of Articles 53 to 57 of Regulation (EU) No 2021/1060 of the European Parliament and of the Council (16).

Article 8

Cumulation

1.   In determining whether the notification thresholds laid down in Article 3 and the maximum aid intensities laid down in Chapter III are respected, the total amount of State aid measures for the aided activity or project or undertaking shall be taken into account, regardless of whether that aid is financed from local, regional, national or Union sources.

2.   Aid exempted by this Regulation may be cumulated with:

| (a) | any other State aid, as long as those measures concern different identifiable eligible costs; |
| --- | --- |

(a)

any other State aid, as long as those measures concern different identifiable eligible costs;

| (b) | any other State aid, in relation to the same eligible costs, partly or fully overlapping, only if such cumulation does not result in exceeding the highest aid intensity or aid amount applicable to this aid under this Regulation. |
| --- | --- |

(b)

any other State aid, in relation to the same eligible costs, partly or fully overlapping, only if such cumulation does not result in exceeding the highest aid intensity or aid amount applicable to this aid under this Regulation.

3.   State aid exempted under this Regulation shall not be cumulated with any de minimis aid in respect of the same eligible costs, if such cumulation would result in an aid intensity exceeding those referred to in Chapter III.

Article 9

Publication and information

1.   The Member State concerned shall ensure the publication on the Commission’s transparency award module or a comprehensive State aid website, at national or regional level of:

| (a) | the summary information referred to in Article 11 in the standardised format laid down in Annex II or a link providing access to it; |
| --- | --- |

(a)

the summary information referred to in Article 11 in the standardised format laid down in Annex II or a link providing access to it;

| (b) | the full text of each aid measure as referred to in Article 11 or a link providing access to the full text; |
| --- | --- |

(b)

the full text of each aid measure as referred to in Article 11 or a link providing access to the full text;

| (c) | the information on each individual aid award exceeding EUR 10 000. |
| --- | --- |

(c)

the information on each individual aid award exceeding EUR 10 000.

The information referred to in points (a), (b) and (c) of the first paragraph shall be published in accordance with Annex III.

2.   For schemes in the form of tax advantages, the conditions set out in paragraph 1, point (c), shall be considered fulfilled, if Member States publish the required information on individual aid amounts in the following ranges (in EUR million):

| (a) | 0,03-0,2; |
| --- | --- |

(a)

0,03-0,2;

| (b) | 0,2-0,4; |
| --- | --- |

(b)

0,2-0,4;

| (c) | 0,4-0,6; |
| --- | --- |

(c)

0,4-0,6;

| (d) | 0,6-0,8; |
| --- | --- |

(d)

0,6-0,8;

| (e) | 0,8-1. |
| --- | --- |

(e)

0,8-1.

3.   The information referred to in paragraph 1, point (c), shall be organised and accessible in a standardised manner, as set out in Annex III, and shall allow for effective search and download functions. The information referred to in paragraph 1 shall be published within six months from the date the aid was granted, or for aid in the form of tax advantage, within one year from the date the tax declaration is due, and shall be available for at least 10 years from the date on which the aid was granted.

4.   Each aid scheme and individual aid shall contain an explicit reference to this Regulation, by citing its title and publication reference in the Official Journal of the European Union, and to the specific provisions of Chapter III concerned by that aid, or where applicable, to the national law which ensures that the relevant provisions of this Regulation are complied with. It shall be accompanied by its implementing provisions and its amendments.

5.   The Commission shall publish on its Internet:

| (a) | the links to the State aid websites, referred to in paragraph 1 of this Article; |
| --- | --- |

(a)

the links to the State aid websites, referred to in paragraph 1 of this Article;

| (b) | the summary information referred to in Article 11. |
| --- | --- |

(b)

the summary information referred to in Article 11.

CHAPTER II

MONITORING

MONITORING

Article 10

Withdrawal of the benefit of the block exemption

Where a Member State grants aid allegedly exempted from the notification requirement under this Regulation without fulfilling the conditions set out in Chapters I, II and III, the Commission may, after having provided the Member State concerned with the possibility to make its views known, adopt a decision stating that all or some of the future aid measures adopted by the Member State concerned which would otherwise fulfil the requirements of this Regulation, are to be notified to the Commission in accordance with Article 108(3) TFEU. The measures to be notified may be limited to measures granting certain types of aid, in favour of certain beneficiaries or adopted by certain authorities of the Member State concerned.

Article 11

Reporting

1.   Member States shall transmit to the Commission in electronic form an annual report, as referred to in Chapter III of Commission Regulation (EC) No 794/2004 (17), on the application of this Regulation in respect of each whole year or each part of the year during which this Regulation applies.

2.   Member States shall also transmit to the Commission, via the Commission’s electronic notification system, the summary information about each aid measure exempted under this Regulation in the standardised format laid down in Annex II, together with a link providing access to the full text of the aid measure, including its amendments, within 20 working days following its entry into force.

Article 12

Monitoring

Member States shall maintain detailed records with the information and supporting documentation necessary to establish that all the conditions laid down in this Regulation are fulfilled. Such records shall be kept for 10 years from the date on which the ad hoc aid was granted or the last aid was granted under the scheme. The Member State concerned shall provide the Commission within a period of 20 working days or such longer period as may be fixed in the request, with all the information and supporting documentation which the Commission considers necessary to monitor the application of this Regulation.

CHAPTER III

SPECIFIC PROVISIONS FOR DIFFERENT CATEGORIES OF AID

SPECIFIC PROVISIONS FOR DIFFERENT CATEGORIES OF AID

SECTION 1

SECTION 1

Fostering sustainable fisheries and the restoration and conservation of aquatic biological resources

Fostering sustainable fisheries and the restoration and conservation of aquatic biological resources

Article 13

General conditions

Any aid under this Section shall fulfill the following general conditions:

| (a) | where aid is granted in respect of a Union fishing vessel, that vessel shall not be transferred or reflagged outside the Union during at least the five years from the final payment for the supported operation. If a vessel is transferred or reflagged within that time-frame, sums unduly paid in respect of the operation shall be recovered by the Member State, in an amount proportionate to the period during which the condition set out in the first sentence of this point has not been fulfilled; |
| --- | --- |

(a)

where aid is granted in respect of a Union fishing vessel, that vessel shall not be transferred or reflagged outside the Union during at least the five years from the final payment for the supported operation. If a vessel is transferred or reflagged within that time-frame, sums unduly paid in respect of the operation shall be recovered by the Member State, in an amount proportionate to the period during which the condition set out in the first sentence of this point has not been fulfilled;

| (b) | operating costs shall not be eligible unless expressly provided for otherwise in this Section. |
| --- | --- |

(b)

operating costs shall not be eligible unless expressly provided for otherwise in this Section.

Article 14

Aid for innovation

1.   Aid for innovation in fisheries fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid aims at developing or introducing new or substantially improved products and equipment, new or improved processes and techniques, and new or improved management and organization systems, including at the level of processing and marketing.

2.   Operations financed by the aid are carried out by, or in collaboration with, a scientific or technical body, recognized by the Member State or the Union. That scientific or technical body shall validate the results of such operations.

3.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 15

Aid for advisory services

1.   Aid for advisory services fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid aims at improving the overall performance and competitiveness of undertakings and at promoting sustainable fisheries; |
| --- | --- |

(a)

the aid aims at improving the overall performance and competitiveness of undertakings and at promoting sustainable fisheries;

| (b) | the advisory service takes on one of the following forms:






  (i) | feasibility studies and advisory services that assess the viability of measures potentially eligible for support under Chapter II of Title II of Regulation (EU) 2021/1139; |
| --- | --- | --- |

(b)

the advisory service takes on one of the following forms:

(i)

feasibility studies and advisory services that assess the viability of measures potentially eligible for support under Chapter II of Title II of Regulation (EU) 2021/1139;

| (ii) | the provision of professional advice on environmental sustainability, with a focus on limiting and, where possible, eliminating the negative impact of fishing activities on marine, terrestrial and freshwater ecosystems; |
| --- | --- |

(ii)

the provision of professional advice on environmental sustainability, with a focus on limiting and, where possible, eliminating the negative impact of fishing activities on marine, terrestrial and freshwater ecosystems;

| (iii) | the provision of professional advice on business and marketing strategies. |
| --- | --- |

(iii)

the provision of professional advice on business and marketing strategies.

2.   The feasibility studies, advisory services and advice referred to in paragraph 1, point (b), shall be provided by scientific, academic, professional or technical bodies, or entities providing economic advice that have the competence required under national law.

3.   The support referred to in paragraph 1 shall be granted to operators and organisations of fishers, including producer organisations.

4.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the measure. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 16

Aid for partnership between scientists and fishers

1.   Aid for partnership between scientists and fishers fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid aims at fostering the transfer of knowledge between scientists and fishers; |
| --- | --- |

(a)

the aid aims at fostering the transfer of knowledge between scientists and fishers;

| (b) | the aid supports the following:






  (i) | the creation of networks, partnership agreements or associations between one or more independent scientific bodies and fishers, or one or more organisations of fishers, in which technical bodies may participate; |
| --- | --- | --- |

(b)

the aid supports the following:

(i)

the creation of networks, partnership agreements or associations between one or more independent scientific bodies and fishers, or one or more organisations of fishers, in which technical bodies may participate;

| (ii) | the activities carried out in the framework of the networks, partnership agreements, or associations referred to in point (i). These activities may cover data collection and management activities, studies, pilot projects, dissemination of knowledge and research results, seminars and best practices. |
| --- | --- |

(ii)

the activities carried out in the framework of the networks, partnership agreements, or associations referred to in point (i). These activities may cover data collection and management activities, studies, pilot projects, dissemination of knowledge and research results, seminars and best practices.

2.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 17

Aid to promote human capital, job creation and social dialogue

1.   Aid to promote human capital, job creation and social dialogue fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid supports the following:

| (a) | professional training, lifelong learning, joint projects, the dissemination of knowledge of an economic, technical, regulatory or scientific nature and of innovative practices, and the acquisition of new professional skills, in particular linked to the sustainable management of marine ecosystems, hygiene, health, safety, activities in the maritime sector, innovation and entrepreneurship; |
| --- | --- |

(a)

professional training, lifelong learning, joint projects, the dissemination of knowledge of an economic, technical, regulatory or scientific nature and of innovative practices, and the acquisition of new professional skills, in particular linked to the sustainable management of marine ecosystems, hygiene, health, safety, activities in the maritime sector, innovation and entrepreneurship;

| (b) | networking and exchange of experiences and best practices between stakeholders, including among organisations promoting equal opportunities between men and women, promoting the role of women in fishing communities and promoting under-represented groups involved in small-scale coastal fishing or in on-foot fishing; |
| --- | --- |

(b)

networking and exchange of experiences and best practices between stakeholders, including among organisations promoting equal opportunities between men and women, promoting the role of women in fishing communities and promoting under-represented groups involved in small-scale coastal fishing or in on-foot fishing;

| (c) | social dialogue at Union, national, regional or local level involving fishers, social partners and other relevant stakeholders. |
| --- | --- |

(c)

social dialogue at Union, national, regional or local level involving fishers, social partners and other relevant stakeholders.

2.   The aid to support activities listed in paragraph 1 may also be granted to spouses of self-employed fishers or, where and in so far as recognised by national law, the life partners of self-employed fishers, not being employees or business partners, where they habitually, under the conditions laid down by national law, participate in the activities of the self-employed worker and perform the same tasks or ancillary tasks.

3.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 18

Aid to facilitate diversification and new forms of income

1.   Aid to facilitate diversification and new forms of income fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid aims at supporting investments contributing to the diversification of the income of fishers through the development of complementary activities, including investments on board, angling tourism, restaurants, environmental services related to fishing and educational activities concerning fishing; |
| --- | --- |

(a)

the aid aims at supporting investments contributing to the diversification of the income of fishers through the development of complementary activities, including investments on board, angling tourism, restaurants, environmental services related to fishing and educational activities concerning fishing;

| (b) | the aid supports fishers who:






  (i) | submit a business plan for the development of their new activities; and |
| --- | --- | --- |

(b)

the aid supports fishers who:

(i)

submit a business plan for the development of their new activities; and

| (ii) | possess adequate professional skills which may be acquired through operations financed under Article 17(3), point (a). |
| --- | --- |

(ii)

possess adequate professional skills which may be acquired through operations financed under Article 17(3), point (a).

2.   The aid referred to in paragraph 1, point (a), shall only be granted if the complementary activities relate to the fisher’s core fishing business.

3.   The amount of that aid shall not exceed 50 % of the budget foreseen in the business plan for each operation, and shall not exceed a maximum amount of EUR 75 000 for each beneficiary.

Article 19

Aid to improve health, safety and working conditions for fishers

1.   Aid to improve health, safety and working conditions for fishers fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid is granted only in respect of investments on board or in individual equipment and those investments go beyond the requirements under Union or national law; |
| --- | --- |

(a)

the aid is granted only in respect of investments on board or in individual equipment and those investments go beyond the requirements under Union or national law;

| (b) | the aid does not support operations that increase the gross tonnage of a fishing vessel. |
| --- | --- |

(b)

the aid does not support operations that increase the gross tonnage of a fishing vessel.

2.   For operations that are aimed at improving safety for fishers on board fishing vessels, the purchase and, if applicable, the installation of the following items are eligible for support:

| (a) | life rafts; |
| --- | --- |

(a)

life rafts;

| (b) | hydrostatic release units for life-rafts; |
| --- | --- |

(b)

hydrostatic release units for life-rafts;

| (c) | personal locator beacons such as Emergency Position Indicating Radio Beacon (‘EPIRB’) devices, which may be integrated into lifejackets and working clothes of fishers; |
| --- | --- |

(c)

personal locator beacons such as Emergency Position Indicating Radio Beacon (‘EPIRB’) devices, which may be integrated into lifejackets and working clothes of fishers;

| (d) | Personal Flotation Devices (‘PFD’), in particular immersion or survival suits, life buoys and jackets; |
| --- | --- |

(d)

Personal Flotation Devices (‘PFD’), in particular immersion or survival suits, life buoys and jackets;

| (e) | distress flares; |
| --- | --- |

(e)

distress flares;

| (f) | line throwing appliances; |
| --- | --- |

(f)

line throwing appliances;

| (g) | man-overboard (‘MOB’) recovery systems; |
| --- | --- |

(g)

man-overboard (‘MOB’) recovery systems;

| (h) | fire-fighting apparatus, such as fire extinguishers, fire blankets, fire and smoke detectors, breathing apparatus; |
| --- | --- |

(h)

fire-fighting apparatus, such as fire extinguishers, fire blankets, fire and smoke detectors, breathing apparatus;

| (i) | fire protection doors; |
| --- | --- |

(i)

fire protection doors;

| (j) | fuel tank shut-off valves; |
| --- | --- |

(j)

fuel tank shut-off valves;

| (k) | gas detectors and gas alarm systems; |
| --- | --- |

(k)

gas detectors and gas alarm systems;

| (l) | bilge pumps and alarms; |
| --- | --- |

(l)

bilge pumps and alarms;

| (m) | equipment for radio and satellite communications; |
| --- | --- |

(m)

equipment for radio and satellite communications;

| (n) | watertight hatches and doors; |
| --- | --- |

(n)

watertight hatches and doors;

| (o) | guards on machinery, such as winches or net drums; |
| --- | --- |

(o)

guards on machinery, such as winches or net drums;

| (p) | gangways and access ladders; |
| --- | --- |

(p)

gangways and access ladders;

| (q) | search, deck or emergency lighting; |
| --- | --- |

(q)

search, deck or emergency lighting;

| (r) | safety release mechanism for cases where fishing gear catches an underwater obstruction; |
| --- | --- |

(r)

safety release mechanism for cases where fishing gear catches an underwater obstruction;

| (s) | safety cameras and monitors; |
| --- | --- |

(s)

safety cameras and monitors;

| (t) | equipment and elements necessary to improve deck safety. |
| --- | --- |

(t)

equipment and elements necessary to improve deck safety.

3.   For operations or the provision of equipment that are aimed at the improvement of the health conditions for fishers on board fishing vessels, the following actions are eligible for support:

| (a) | the purchase and installation of first aid kits; |
| --- | --- |

(a)

the purchase and installation of first aid kits;

| (b) | the purchase of medicines and devices for urgent treatment on board; |
| --- | --- |

(b)

the purchase of medicines and devices for urgent treatment on board;

| (c) | the provision of telemedicine including e-technologies, equipment and medical imagery applied to distance consultation from the vessels; |
| --- | --- |

(c)

the provision of telemedicine including e-technologies, equipment and medical imagery applied to distance consultation from the vessels;

| (d) | the provision of guides and manuals to improve health on-board; |
| --- | --- |

(d)

the provision of guides and manuals to improve health on-board;

| (e) | information campaigns to improve health on board. |
| --- | --- |

(e)

information campaigns to improve health on board.

4.   For operations or the provision of equipment that are aimed at the improvement of hygiene conditions for fishers on board fishing vessels, the purchase and, if applicable, the installation of the following items are eligible for support:

| (a) | sanitary facilities, such as toilet and washing facilities; |
| --- | --- |

(a)

sanitary facilities, such as toilet and washing facilities;

| (b) | kitchen facilities and equipment for food supplies storage; |
| --- | --- |

(b)

kitchen facilities and equipment for food supplies storage;

| (c) | water purification devices for potable water; |
| --- | --- |

(c)

water purification devices for potable water;

| (d) | cleaning equipment to keep sanitary conditions on board; |
| --- | --- |

(d)

cleaning equipment to keep sanitary conditions on board;

| (e) | guides and manuals on the improvement of hygiene on board, including software tools. |
| --- | --- |

(e)

guides and manuals on the improvement of hygiene on board, including software tools.

5.   For operations or the provision of equipment that are aimed at the improvement of working conditions on board fishing vessels, the purchase and, if applicable, the installation of the following items are eligible for support:

| (a) | deck railings; |
| --- | --- |

(a)

deck railings;

| (b) | shelter deck structures and the modernisation of cabins with a view of providing protection from adverse weather conditions; |
| --- | --- |

(b)

shelter deck structures and the modernisation of cabins with a view of providing protection from adverse weather conditions;

| (c) | items relating to the improvement of cabin safety and to the provision of common areas for the crew; |
| --- | --- |

(c)

items relating to the improvement of cabin safety and to the provision of common areas for the crew;

| (d) | equipment to reduce heavy manual lifting, excluding machines directly related to the fishing operations such as winches; |
| --- | --- |

(d)

equipment to reduce heavy manual lifting, excluding machines directly related to the fishing operations such as winches;

| (e) | anti-slipping paint and rubber mats; |
| --- | --- |

(e)

anti-slipping paint and rubber mats;

| (f) | insulation equipment against noise, heat or cold, and equipment to improve ventilation; |
| --- | --- |

(f)

insulation equipment against noise, heat or cold, and equipment to improve ventilation;

| (g) | working clothes and safety equipment such as waterproof safety boots, eyes and breathing protection, protective gloves and helmets, or protective equipment against falls; |
| --- | --- |

(g)

working clothes and safety equipment such as waterproof safety boots, eyes and breathing protection, protective gloves and helmets, or protective equipment against falls;

| (h) | emergency and safety warning signs; |
| --- | --- |

(h)

emergency and safety warning signs;

| (i) | risk analysis and assessments to identify the risks for fishers both in port or in navigation in order to take measures to prevent or reduce risks; |
| --- | --- |

(i)

risk analysis and assessments to identify the risks for fishers both in port or in navigation in order to take measures to prevent or reduce risks;

| (j) | guides and manuals on the improvement of working conditions on board. |
| --- | --- |

(j)

guides and manuals on the improvement of working conditions on board.

6.   The aid shall be granted to fishers or owners of fishing vessels.

7.   Where the operation consists of an investment on board, the support shall not be granted more than once during the period between 1 January 2021 and 31 December 2027 for the same type of investment and for the same fishing vessel. Where the operation consists of an investment in individual equipment, the support shall not be granted more than once during the period between 1 January 2021 and 31 December 2027 for the same type of equipment and for the same beneficiary.

8.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 20

Aid to mutual funds for public health crises, adverse weather conditions and environmental incidents

1.   Aid to mutual funds for public health crises, adverse weather conditions and environmental incidents fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid aims at contributing to mutual funds which pay financial compensation to fishers for economic losses caused by public health crises, adverse weather conditions or by environmental incidents or for the rescue costs for fishers or fishing vessels in the case of accidents at sea during their fishing activities; |
| --- | --- |

(a)

the aid aims at contributing to mutual funds which pay financial compensation to fishers for economic losses caused by public health crises, adverse weather conditions or by environmental incidents or for the rescue costs for fishers or fishing vessels in the case of accidents at sea during their fishing activities;

| (b) | the combination of financial compensation paid by mutual funds under this Article with other Union or national instruments or private insurance schemes shall not lead to overcompensation exceeding the economic loss incurred. |
| --- | --- |

(b)

the combination of financial compensation paid by mutual funds under this Article with other Union or national instruments or private insurance schemes shall not lead to overcompensation exceeding the economic loss incurred.

2.   For the purposes of this Article :

| (a) | public health crises, adverse weather conditions, environmental incidents or accidents at sea referred to in paragraph 1, point (a) , shall be those that are formally recognized by the competent authority of the Member State as having occurred. |
| --- | --- |

(a)

public health crises, adverse weather conditions, environmental incidents or accidents at sea referred to in paragraph 1, point (a) , shall be those that are formally recognized by the competent authority of the Member State as having occurred.

| (b) | the term ‘mutual fund’ means a scheme accredited by the Member State, in accordance with its national law, which enables affiliated fishers to insure themselves, whereby compensation payments are made to affiliated fishers for economic losses caused by the events listed in paragraph 1, point (a). The mutual fund shall have a transparent policy towards payments into and withdrawals from the fund and have clear rules attributing responsibilities for any debts incurred |
| --- | --- |

(b)

the term ‘mutual fund’ means a scheme accredited by the Member State, in accordance with its national law, which enables affiliated fishers to insure themselves, whereby compensation payments are made to affiliated fishers for economic losses caused by the events listed in paragraph 1, point (a). The mutual fund shall have a transparent policy towards payments into and withdrawals from the fund and have clear rules attributing responsibilities for any debts incurred

3.   The contributions referred to in paragraph 1, point (a), shall only relate to the amounts paid by the mutual fund as financial compensation to fishers and may cover up to 50 % thereof. The administrative costs of setting up the mutual funds shall not be eligible for support.

4.   The contributions referred to in paragraph 1, point (a), shall only be granted to cover losses caused by public health crises, adverse weather conditions, environmental incidents or accidents at sea which amount to more than 30 % of the annual turnover of the business concerned, calculated on the basis of the average turnover of that business over the preceding three calendar years.

5.   The aid shall not be made to the initial capital stock.

Article 21

Aid to support systems of allocation of fishing opportunities

1.   Aid to support systems of allocation of fishing opportunities fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid aims at supporting the design, development, monitoring, evaluation and management of the systems for allocating the fishing opportunities between Member States, in accordance with Article 16(8) of Regulation (EU) No 1380/2013, in order to adapt the fishing activities to the fishing opportunities; |
| --- | --- |

(a)

the aid aims at supporting the design, development, monitoring, evaluation and management of the systems for allocating the fishing opportunities between Member States, in accordance with Article 16(8) of Regulation (EU) No 1380/2013, in order to adapt the fishing activities to the fishing opportunities;

| (b) | the aid shall be granted to legal or natural persons or organisations of fishers recognized by the Member State, including recognized producer organisations involved in the collective management of the systems allocating the fishing opportunities. |
| --- | --- |

(b)

the aid shall be granted to legal or natural persons or organisations of fishers recognized by the Member State, including recognized producer organisations involved in the collective management of the systems allocating the fishing opportunities.

2.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 100 % of the total eligible expenditure of the operation.

Article 22

Aid to limit the impact of fishing on the marine environment and adapt fishing to the protection of species

1.   Aid to limit the impact of fishing on the marine environment and adapt fishing to the protection of species fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid aims at reducing the impact of fishing on the marine environment, at fostering the gradual elimination of discards and at facilitating the transition to a sustainable exploitation of living marine biological resources in accordance with Article 2(2) of Regulation (EU) No 1380/2013; |
| --- | --- |

(a)

the aid aims at reducing the impact of fishing on the marine environment, at fostering the gradual elimination of discards and at facilitating the transition to a sustainable exploitation of living marine biological resources in accordance with Article 2(2) of Regulation (EU) No 1380/2013;

| (b) | the aid supports the following investments:






  (i) | in equipment improving size selectivity or species selectivity of fishing gear; |
| --- | --- | --- |

(b)

the aid supports the following investments:

(i)

in equipment improving size selectivity or species selectivity of fishing gear;

| (ii) | on board or in equipment that eliminates discards by avoiding and reducing unwanted catches of commercial stocks, or that deals with unwanted catches to be landed in accordance with Article 15 of Regulation (EU) No 1380/2013; |
| --- | --- |

(ii)

on board or in equipment that eliminates discards by avoiding and reducing unwanted catches of commercial stocks, or that deals with unwanted catches to be landed in accordance with Article 15 of Regulation (EU) No 1380/2013;

| (iii) | in equipment that limits and, where possible, eliminates the physical and biological impacts of fishing on the ecosystem or the sea bed; |
| --- | --- |

(iii)

in equipment that limits and, where possible, eliminates the physical and biological impacts of fishing on the ecosystem or the sea bed;

| (iv) | in equipment that protects fishing gear and catches from mammals and birds protected by Council Directive 92/43/EEC (18) or Directive 2009/147/EC of the European Parliament and of the Council (19), provided that it does not undermine the selectivity of the fishing gear and that all appropriate measures are introduced to avoid physical damage to the predators. |
| --- | --- |

(iv)

in equipment that protects fishing gear and catches from mammals and birds protected by Council Directive 92/43/EEC (18) or Directive 2009/147/EC of the European Parliament and of the Council (19), provided that it does not undermine the selectivity of the fishing gear and that all appropriate measures are introduced to avoid physical damage to the predators.

2.   The aid shall not be granted more than once during the period between 1 January 2021 and 31 December 2027 for the same type of equipment on the same Union fishing vessel.

3.   The aid shall only be granted where the fishing gear or other equipment referred to in paragraph 1, point (b), has a demonstrably better size-selection or a demonstrably lower impact on the ecosystem and on non-target species than the standard gear or other equipment permitted under Union law, or under relevant national law adopted in the context of regionalization as provided for in Regulation (EU) No 1380/2013.

4.   The aid shall be granted to

| (a) | owners of Union fishing vessels which are registered as active vessels and which have carried out fishing activities at sea of at least 60 days during the two calendar years preceding the date of submission of the application for support; |
| --- | --- |

(a)

owners of Union fishing vessels which are registered as active vessels and which have carried out fishing activities at sea of at least 60 days during the two calendar years preceding the date of submission of the application for support;

| (b) | fishers who own the gear to be replaced and who have worked on board of a Union fishing vessel for at least 60 days during the two calendar years preceding the date of submission of the application for support; |
| --- | --- |

(b)

fishers who own the gear to be replaced and who have worked on board of a Union fishing vessel for at least 60 days during the two calendar years preceding the date of submission of the application for support;

| (c) | organisations of fishers recognised by the Member State. |
| --- | --- |

(c)

organisations of fishers recognised by the Member State.

5.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 100 % of the total eligible expenditure of the operation.

Article 23

Aid to innovation linked to the conservation of marine biological resources

1.   Aid to innovation linked to the conservation of marine biological resources fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c) TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid aims at contributing to the gradual elimination of discards and by-catches and to facilitate the transition to exploitation of living marine biological resources in accordance with Article 2(2) of Regulation (EU) No 1380/2013 and to reduce the impact of fishing on the marine environment and the impact of protected predator; |
| --- | --- |

(a)

the aid aims at contributing to the gradual elimination of discards and by-catches and to facilitate the transition to exploitation of living marine biological resources in accordance with Article 2(2) of Regulation (EU) No 1380/2013 and to reduce the impact of fishing on the marine environment and the impact of protected predator;

| (b) | the aid supports operations aimed at developing or introducing new technical or organizational knowledge that reduces the impact of fishing activities on the environment, including improved fishing techniques and gear selectivity, or aimed at achieving a more sustainable use of marine biological resources and coexistence with protected predators; |
| --- | --- |

(b)

the aid supports operations aimed at developing or introducing new technical or organizational knowledge that reduces the impact of fishing activities on the environment, including improved fishing techniques and gear selectivity, or aimed at achieving a more sustainable use of marine biological resources and coexistence with protected predators;

| (c) | the supported operations shall be carried out by, or in collaboration with, a scientific or technical body recognized by the Member State which shall validate the results of such operations; |
| --- | --- |

(c)

the supported operations shall be carried out by, or in collaboration with, a scientific or technical body recognized by the Member State which shall validate the results of such operations;

| (d) | the results of supported operations are adequately publicized by the Member State. |
| --- | --- |

(d)

the results of supported operations are adequately publicized by the Member State.

2.   Fishing vessels involved in projects financed under this Article shall not exceed 5 % of the number of vessels of the national fleet or 5 % of the national fleet tonnage in gross tonnage, calculated at the time of adoption of the support instrument.

3.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 24

Aid for the protection and restoration of marine biodiversity and ecosystems and compensation regimes in the framework of sustainable fishing activities

1.   Aid for the protection and restoration of marine biodiversity and ecosystems and compensation regimes in the framework of sustainable fishing activities fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof.

2.   The aid under this Article shall support the following operations:

| (a) | the collection of waste by the fisher from the sea such as the passive collection of lost fishing gear and marine litter; the following actions are eligible for support:






  (i) | the removal of lost fishing gear from the sea, in particular in order to combat ghost fishing; |
| --- | --- | --- |

(a)

the collection of waste by the fisher from the sea such as the passive collection of lost fishing gear and marine litter; the following actions are eligible for support:

(i)

the removal of lost fishing gear from the sea, in particular in order to combat ghost fishing;

| (ii) | the purchase and, if applicable, the installation of equipment on board for the collection and storage of litter; |
| --- | --- |

(ii)

the purchase and, if applicable, the installation of equipment on board for the collection and storage of litter;

| (iii) | the creation of schemes of waste collection for participating fishers, including financial incentives; |
| --- | --- |

(iii)

the creation of schemes of waste collection for participating fishers, including financial incentives;

| (iv) | the purchase and, if applicable, the installation of equipment based in fishing port facilities for the storage and recycling of litter; |
| --- | --- |

(iv)

the purchase and, if applicable, the installation of equipment based in fishing port facilities for the storage and recycling of litter;

| (v) | communication, information, awareness raising campaigns, to encourage fishers and other stakeholders to participate in projects to remove lost fishing gear; |
| --- | --- |

(v)

communication, information, awareness raising campaigns, to encourage fishers and other stakeholders to participate in projects to remove lost fishing gear;

| (vi) | training for fishers and port agents. |
| --- | --- |

(vi)

training for fishers and port agents.

| (b) | the construction, installation or modernization of static or movable facilities intended to protect and enhance marine fauna and flora, including their scientific preparation and evaluation; the following actions are eligible for support:






  (i) | the purchase and, if applicable, the installation of facilities to protect marine areas from trawling; |
| --- | --- | --- |

(b)

the construction, installation or modernization of static or movable facilities intended to protect and enhance marine fauna and flora, including their scientific preparation and evaluation; the following actions are eligible for support:

(i)

the purchase and, if applicable, the installation of facilities to protect marine areas from trawling;

| (ii) | the purchase and, if applicable, the installation of facilities to restore degraded marine ecosystems; |
| --- | --- |

(ii)

the purchase and, if applicable, the installation of facilities to restore degraded marine ecosystems;

| (iii) | costs relating to preliminary work such as prospecting, scientific studies or evaluations.
  For operations referred in points (i) to (iv), the following costs shall not be eligible:






  — | acquisition of a vessel to be submerged and used as an artificial reef; |
| --- | --- | --- |

(iii)

costs relating to preliminary work such as prospecting, scientific studies or evaluations.

For operations referred in points (i) to (iv), the following costs shall not be eligible:

—

acquisition of a vessel to be submerged and used as an artificial reef;

| — | costs relating to the construction and maintenance of fish aggregating devices, except for costs provided for in point (iv); |
| --- | --- |

—

costs relating to the construction and maintenance of fish aggregating devices, except for costs provided for in point (iv);

| (c) | contributions to a better management or conservation of marine biological resources by tinstalling the following items or taking the following actions and projectst:






  (i) | circular hooks; |
| --- | --- | --- |

(c)

contributions to a better management or conservation of marine biological resources by tinstalling the following items or taking the following actions and projectst:

(i)

circular hooks;

| (ii) | acoustic deterrent devices on nets; |
| --- | --- |

(ii)

acoustic deterrent devices on nets;

| (iii) | turtle excluder devices (‘TEDs’); |
| --- | --- |

(iii)

turtle excluder devices (‘TEDs’);

| (iv) | streamer lines; |
| --- | --- |

(iv)

streamer lines;

| (v) | other tools or devices proven efficient in preventing accidental catches of protected species; |
| --- | --- |

(v)

other tools or devices proven efficient in preventing accidental catches of protected species;

| (vi) | training for fishers on better management or conservation of marine biological resources; |
| --- | --- |

(vi)

training for fishers on better management or conservation of marine biological resources;

| (vii) | projects focussing on coastal habitats of importance for fish, birds and other organisms; |
| --- | --- |

(vii)

projects focussing on coastal habitats of importance for fish, birds and other organisms;

| (viii) | projects focusing on areas of importance for fish reproduction, such as coastal wetlands; |
| --- | --- |

(viii)

projects focusing on areas of importance for fish reproduction, such as coastal wetlands;

| (ix) | replacement of existing fishing gear with low impact fishing gear, costs related to fish pots and traps, jigging and hand-lining; |
| --- | --- |

(ix)

replacement of existing fishing gear with low impact fishing gear, costs related to fish pots and traps, jigging and hand-lining;

| (d) | schemes for compensation for damage to catches caused by mammals and birds protected by Directives 92/43/EEC and 2009/147/EC; |
| --- | --- |

(d)

schemes for compensation for damage to catches caused by mammals and birds protected by Directives 92/43/EEC and 2009/147/EC;

| (e) | the participation in other actions aimed at maintaining and enhancing biodiversity and ecosystem services, such as the restoration of specific marine and coastal habitats in support of sustainable fish stocks, including their scientific preparation and evaluation; costs related to the following actions are eligible for support:






  (i) | costs relating to schemes to test novel monitoring techniques, and in particular:






  — | remote electronic monitoring systems, such as CCTV, for the monitoring and recording of incidental catches of protected species; |
| --- | --- | --- | --- |

(e)

the participation in other actions aimed at maintaining and enhancing biodiversity and ecosystem services, such as the restoration of specific marine and coastal habitats in support of sustainable fish stocks, including their scientific preparation and evaluation; costs related to the following actions are eligible for support:

(i)

costs relating to schemes to test novel monitoring techniques, and in particular:

—

remote electronic monitoring systems, such as CCTV, for the monitoring and recording of incidental catches of protected species;

| — | the recording of oceanographic data such as temperature, salinity, plankton, algae blooms or turbidity; |
| --- | --- |

—

the recording of oceanographic data such as temperature, salinity, plankton, algae blooms or turbidity;

| — | the mapping of invasive alien species (IAS); |
| --- | --- |

—

the mapping of invasive alien species (IAS);

| — | actions, including studies, to prevent and control the expansion of IAS; |
| --- | --- |

—

actions, including studies, to prevent and control the expansion of IAS;

| (ii) | financial incentives for the installation on board of automatic recording devices for monitoring and recording oceanographic data such as temperature, salinity, plankton, algae blooms or turbidity; |
| --- | --- |

(ii)

financial incentives for the installation on board of automatic recording devices for monitoring and recording oceanographic data such as temperature, salinity, plankton, algae blooms or turbidity;

| (iii) | actions reducing physical and chemical pollution; |
| --- | --- |

(iii)

actions reducing physical and chemical pollution;

| (iv) | actions reducing other physical pressures, including anthropogenic underwater noise that negatively affect biodiversity; |
| --- | --- |

(iv)

actions reducing other physical pressures, including anthropogenic underwater noise that negatively affect biodiversity;

| (v) | positive conservation measures to protect and conserve flora and fauna, including the reintroduction of or stocking with native species, and applying Green Infrastructure principles referred to in the Commission Communication on Green Infrastructure (20); |
| --- | --- |

(v)

positive conservation measures to protect and conserve flora and fauna, including the reintroduction of or stocking with native species, and applying Green Infrastructure principles referred to in the Commission Communication on Green Infrastructure (20);

| (vi) | actions to prevent, control or eliminate IAS. |
| --- | --- |

(vi)

actions to prevent, control or eliminate IAS.

3.   Support under paragraph 2, point (d), shall be subject to the formal recognition of such schemes by the competent authorities of the Member States. Member States shall also ensure that no overcompensation for damage occurs as a result of the combination of Union, national and private compensation schemes.

4.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 100 % of the total eligible expenditure of the operation.

Article 25

Aid to improve energy efficiency and to mitigate the effects of climate change

1.   Aid to improve energy efficiency and to mitigate the effects of climate change, with the exception of aid to replace or modernize engines, fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3).

2.   The aid under this Article shall support the following operations:

| (a) | investments in equipment or on board aimed at reducing the emission of pollutants or greenhouse gases and increasing the energy efficiency of fishing vessels. Investments in fishing gear are also eligible provided that they do not undermine the selectivity of that fishing gear.






  (i) | For operations that are aimed at improving the hydrodynamics of the hull of the vessel, costs related to the following actions are eligible for support:






  — | investments on stability mechanisms such as bilge keels and bulbous bows that contribute to improving sea-keeping and stability; |
| --- | --- | --- | --- |

(a)

investments in equipment or on board aimed at reducing the emission of pollutants or greenhouse gases and increasing the energy efficiency of fishing vessels. Investments in fishing gear are also eligible provided that they do not undermine the selectivity of that fishing gear.

(i)

For operations that are aimed at improving the hydrodynamics of the hull of the vessel, costs related to the following actions are eligible for support:

—

investments on stability mechanisms such as bilge keels and bulbous bows that contribute to improving sea-keeping and stability;

| — | costs related to the use of non-toxic antifouling such as copper coating in order to reduce friction; |
| --- | --- |

—

costs related to the use of non-toxic antifouling such as copper coating in order to reduce friction;

| — | costs relative to the steering gear, such as steering gear control systems and multiple rudders to reduce rudder activity depending on weather and sea-state conditions; |
| --- | --- |

—

costs relative to the steering gear, such as steering gear control systems and multiple rudders to reduce rudder activity depending on weather and sea-state conditions;

| — | tank testing in order to provide a basis for improving hydrodynamics. |
| --- | --- |

—

tank testing in order to provide a basis for improving hydrodynamics.

Costs relating to basic hull maintenance shall not be eligible for funding under this paragraph.

| (ii) | For operations that are aimed at improving the propulsion system of the vessel, costs related to the purchase and, if necessary, the installation of the following items are eligible for support:






  — | energy efficient propellers including drive shafts; |
| --- | --- | --- |

(ii)

For operations that are aimed at improving the propulsion system of the vessel, costs related to the purchase and, if necessary, the installation of the following items are eligible for support:

—

energy efficient propellers including drive shafts;

| — | catalysers; |
| --- | --- |

—

catalysers;

| — | energy efficient generators such as those using hydrogen, or natural gas; |
| --- | --- |

—

energy efficient generators such as those using hydrogen, or natural gas;

| — | renewable energy propulsion elements such as sails, kites, windmills, turbines, or solar panels; |
| --- | --- |

—

renewable energy propulsion elements such as sails, kites, windmills, turbines, or solar panels;

| — | bow thrusters; |
| --- | --- |

—

bow thrusters;

| — | conversion of engines to run on biofuels; |
| --- | --- |

—

conversion of engines to run on biofuels;

| — | econometers, fuel management systems and monitoring systems; |
| --- | --- |

—

econometers, fuel management systems and monitoring systems;

| — | investments in nozzles that improve the propulsion system. |
| --- | --- |

—

investments in nozzles that improve the propulsion system.

| (iii) | For investments in fishing gear and fishing equipment, costs relating to the following actions are eligible for support:






  — | change from towed gear to alternative gear; |
| --- | --- | --- |

(iii)

For investments in fishing gear and fishing equipment, costs relating to the following actions are eligible for support:

—

change from towed gear to alternative gear;

| — | towed gear modifications; |
| --- | --- |

—

towed gear modifications;

| — | investments in towed gear monitoring equipment. |
| --- | --- |

—

investments in towed gear monitoring equipment.

| (iv) | For investments that are aimed at the reduction of electricity or thermal energy, the following costs are eligible for support:






  — | investments to improve the refrigeration, freezing, or insulation systems for vessels under 18 m; |
| --- | --- | --- |

(iv)

For investments that are aimed at the reduction of electricity or thermal energy, the following costs are eligible for support:

—

investments to improve the refrigeration, freezing, or insulation systems for vessels under 18 m;

| — | investments to encourage the recycling of heat within the vessel involving the heat being recovered and reused for other auxiliary operations within the vessel. |
| --- | --- |

—

investments to encourage the recycling of heat within the vessel involving the heat being recovered and reused for other auxiliary operations within the vessel.

| (b) | energy efficiency audits and schemes; |
| --- | --- |

(b)

energy efficiency audits and schemes;

| (c) | studies to assess the contribution of alternative propulsion systems and hull designs to the energy efficiency of fishing vessels. |
| --- | --- |

(c)

studies to assess the contribution of alternative propulsion systems and hull designs to the energy efficiency of fishing vessels.

3.   Support to activities listed under paragraph 2 shall only be granted to owners of fishing vessels and shall not be granted more than once for the same type of investment during the period between 1 January 2021 and 31 December 2027 for the same fishing vessel.

4.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation.Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 26

Aid to added value, product quality and use of unwanted catches

1.   Aid to added value, product quality and use of unwanted catches, fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid aims at improving the added value or quality of the fish caught; |
| --- | --- |

(a)

the aid aims at improving the added value or quality of the fish caught;

| (b) | the aid supports the following investments:






  (i) | investments that add value to fishery products, in particular by allowing fishers to carry out the processing, marketing and direct sale of their own catches; |
| --- | --- | --- |

(b)

the aid supports the following investments:

(i)

investments that add value to fishery products, in particular by allowing fishers to carry out the processing, marketing and direct sale of their own catches;

| (ii) | innovative investments on board that improve the quality of the fishery products. |
| --- | --- |

(ii)

innovative investments on board that improve the quality of the fishery products.

2.   The support referred to in paragraph 1, point (b)(ii), shall be conditional on the use of selective gears to minimize unwanted catches and shall only be granted to owners of Union fishing vessels that have carried out a fishing activity at sea for at least 60 days during the two calendar years preceding the date of submission of the application for support.

3.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 27

Aid to fishing ports, landing sites, auction halls and shelters

1.   Aid to fishing ports, landing sites, auction halls and shelters fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid aims at increasing the quality, control and traceability of the products landed, increasing energy efficiency, contributing to environmental protection and improving safety and working conditions; |
| --- | --- |

(a)

the aid aims at increasing the quality, control and traceability of the products landed, increasing energy efficiency, contributing to environmental protection and improving safety and working conditions;

| (b) | the aid supports investments that:






  (i) | improve the infrastructure of fishing ports, auction halls, landing sites and shelters, including investments in facilities to provide adequate reception facilities for lost fishing gears and marine litter collected from the sea; |
| --- | --- | --- |

(b)

the aid supports investments that:

(i)

improve the infrastructure of fishing ports, auction halls, landing sites and shelters, including investments in facilities to provide adequate reception facilities for lost fishing gears and marine litter collected from the sea;

| (ii) | facilitate compliance with the obligation to land all catches in accordance with Article 15 of Regulation (EU) No 1380/2013 and Article 8(2), point (b), of Regulation (EU) No 1379/2013 or add value to under-used components of the catch; |
| --- | --- |

(ii)

facilitate compliance with the obligation to land all catches in accordance with Article 15 of Regulation (EU) No 1380/2013 and Article 8(2), point (b), of Regulation (EU) No 1379/2013 or add value to under-used components of the catch;

| (iii) | improve the safety of fishers by way of construction or modernization of shelters. |
| --- | --- |

(iii)

improve the safety of fishers by way of construction or modernization of shelters.

2.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation.Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 28

Aid to inland fishing and inland aquatic fauna and flora

1.   Aid to inland fishing and inland aquatic fauna and flora fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid aims at reducing the impact of inland fishing on the environment, at increasing energy efficiency, at increasing the value or quality of fish landed, or at improving health, safety, working conditions, human capital and training.

2.   The aid under this Article shall support the following investments:

| (a) | the promotion of human capital, job creation and social dialogue as referred to in Article 17 and under the conditions set out in that Article; |
| --- | --- |

(a)

the promotion of human capital, job creation and social dialogue as referred to in Article 17 and under the conditions set out in that Article;

| (b) | on board or in individual equipment as referred to in Article 19 and under the conditions set out in that Article; |
| --- | --- |

(b)

on board or in individual equipment as referred to in Article 19 and under the conditions set out in that Article;

| (c) | in equipment and types of operations as referred to in Article 22 and under the conditions set out in that Article; |
| --- | --- |

(c)

in equipment and types of operations as referred to in Article 22 and under the conditions set out in that Article;

| (d) | the improvement of energy efficiency and the mitigation of the effects of climate change as referred to in Article 25 and under the conditions set out in that Article; |
| --- | --- |

(d)

the improvement of energy efficiency and the mitigation of the effects of climate change as referred to in Article 25 and under the conditions set out in that Article;

| (e) | the improvement of the value or quality of the fish caught as referred to in Article 26 and under the conditions set out in that Article; |
| --- | --- |

(e)

the improvement of the value or quality of the fish caught as referred to in Article 26 and under the conditions set out in that Article;

| (f) | in fishing ports, shelters and landing sites as referred to in Article 27 and under the conditions set out in that Article. |
| --- | --- |

(f)

in fishing ports, shelters and landing sites as referred to in Article 27 and under the conditions set out in that Article.

3.   The aid may provide support for the development and facilitation of innovation in accordance with Article 14, for the advisory services in accordance with Article 15 and for partnerships between scientists and fishers in accordance with Article 16.

4.   In order to promote diversification by inland fishers, the aid may support the diversification of inland fishing activities to complementary activities under the conditions laid down in Article 18.

5.   For the purpose of paragraph 2:

| (a) | references made in Articles 19, 22, 25 and 26 to fishing vessels shall be understood as references to vessels operating exclusively in inland waters; |
| --- | --- |

(a)

references made in Articles 19, 22, 25 and 26 to fishing vessels shall be understood as references to vessels operating exclusively in inland waters;

| (b) | references made in Article 22 to the marine environment shall be understood as reference to the environment in which the inland fishing vessel operates. |
| --- | --- |

(b)

references made in Article 22 to the marine environment shall be understood as reference to the environment in which the inland fishing vessel operates.

6.   In order to protect and develop aquatic fauna and flora, the aid may support:

| (a) | the management, restoration and monitoring of NATURA 2000 sites which are affected by fishing activities, and the rehabilitation of inland waters in accordance with Directive 2000/60/EC of the European Parliament and the Council (21), including spawning grounds and migration routes for migratory species, without prejudice to Article 24(2), point (e), of this Regulation and, where relevant, with the participation of inland fishers; |
| --- | --- |

(a)

the management, restoration and monitoring of NATURA 2000 sites which are affected by fishing activities, and the rehabilitation of inland waters in accordance with Directive 2000/60/EC of the European Parliament and the Council (21), including spawning grounds and migration routes for migratory species, without prejudice to Article 24(2), point (e), of this Regulation and, where relevant, with the participation of inland fishers;

| (b) | the construction, modernization or installation of static or movable facilities intended to protect and enhance aquatic fauna and flora, including their scientific preparation, monitoring and evaluation. |
| --- | --- |

(b)

the construction, modernization or installation of static or movable facilities intended to protect and enhance aquatic fauna and flora, including their scientific preparation, monitoring and evaluation.

7.   Members States ensure that vessels receiving support under this Article continue to operate exclusively in inland waters.

8.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation.Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

SECTION 2

SECTION 2

Fostering sustainable aquaculture activities

Fostering sustainable aquaculture activities

Article 29

General conditions

1.   Any aid under this Section shall fulfill the following general conditions:

| (a) | it shall be limited to aquaculture entreprises, unless otherwise stated in this Regulation; |
| --- | --- |

(a)

it shall be limited to aquaculture entreprises, unless otherwise stated in this Regulation;

| (b) | entrepreneurs entering the sector shall provide a business plan and, where the amount of investments is more than EUR 50 000, a feasibility study including an environmental assessment of the operations; |
| --- | --- |

(b)

entrepreneurs entering the sector shall provide a business plan and, where the amount of investments is more than EUR 50 000, a feasibility study including an environmental assessment of the operations;

| (c) | where operations consist of investments in equipment or infrastructure ensuring compliance with future requirements relating to the environment, human or animal health, hygiene or animal welfare under Union law, support may be granted until the date on which such requirements become mandatory for the entreprises; |
| --- | --- |

(c)

where operations consist of investments in equipment or infrastructure ensuring compliance with future requirements relating to the environment, human or animal health, hygiene or animal welfare under Union law, support may be granted until the date on which such requirements become mandatory for the entreprises;

| (d) | aid shall not be granted to the farming of genetically modified organisms; |
| --- | --- |

(d)

aid shall not be granted to the farming of genetically modified organisms;

| (e) | aid shall not be granted to aquaculture operations in marine protected areas, if it has been determined by the competent authority of the Member State, on the basis of an environmental impact assessment, that the operation would generate significant negative environmental impact that cannot be adequately mitigated. |
| --- | --- |

(e)

aid shall not be granted to aquaculture operations in marine protected areas, if it has been determined by the competent authority of the Member State, on the basis of an environmental impact assessment, that the operation would generate significant negative environmental impact that cannot be adequately mitigated.

2.   Support under this Section shall be granted only where it has been clearly demonstrated in an independent marketing report that good and sustainable market prospects exist for the product.

Article 30

Aid for innovation in aquaculture

1.   Aid for innovation in aquaculture fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid stimulates innovation in aquaculture; |
| --- | --- |

(a)

the aid stimulates innovation in aquaculture;

| (b) | the aid aims at the following:






  (i) | developing technical, scientific or organisational knowledge in aquaculture farms, which, in particular, reduces the impact on the environment, reduces dependence on fish meal and oil, fosters a sustainable use of resources in aquaculture, improves animal welfare or facilitates new sustainable production methods; |
| --- | --- | --- |

(b)

the aid aims at the following:

(i)

developing technical, scientific or organisational knowledge in aquaculture farms, which, in particular, reduces the impact on the environment, reduces dependence on fish meal and oil, fosters a sustainable use of resources in aquaculture, improves animal welfare or facilitates new sustainable production methods;

| (ii) | developing or introducing on the market new aquaculture species with market potential, new or substantially improved products, new or improved processes, or new or improved management and organisation systems; |
| --- | --- |

(ii)

developing or introducing on the market new aquaculture species with market potential, new or substantially improved products, new or improved processes, or new or improved management and organisation systems;

| (iii) | exploring the technical or economic feasibility of innovative products or processes. |
| --- | --- |

(iii)

exploring the technical or economic feasibility of innovative products or processes.

2.   Operations under this Article shall be carried out by, or in collaboration with, public or private scientific or technical bodies, recognised by the Member State, which shall validate the results of such operations.

3.   The results of operations receiving support shall be adequately publicised by the Member State.

4.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 31

Aid for investments increasing productivity in aquaculture

1.   Aid for investments increasing productivity in aquaculture fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid supports:

| (a) | productive investments in aquaculture; |
| --- | --- |

(a)

productive investments in aquaculture;

| (b) | diversification of aquaculture production and species cultured; |
| --- | --- |

(b)

diversification of aquaculture production and species cultured;

| (c) | modernisation of aquaculture units, including the improvement in working and safety conditions of aquaculture workers; |
| --- | --- |

(c)

modernisation of aquaculture units, including the improvement in working and safety conditions of aquaculture workers;

| (d) | improvements and modernisation related to animal health and welfare, including the purchase of equipment aiming at protecting the farms from wild predators; |
| --- | --- |

(d)

improvements and modernisation related to animal health and welfare, including the purchase of equipment aiming at protecting the farms from wild predators;

| (e) | investments reducing the negative impact or enhancing the positive effects on the environment and increasing resource efficiency; |
| --- | --- |

(e)

investments reducing the negative impact or enhancing the positive effects on the environment and increasing resource efficiency;

| (f) | investments in enhancing the quality of, or in adding value to, aquaculture products; |
| --- | --- |

(f)

investments in enhancing the quality of, or in adding value to, aquaculture products;

| (g) | the restoration of existing aquaculture ponds or lagoons through the removal of silt, or investments aimed at the prevention of silt deposits; |
| --- | --- |

(g)

the restoration of existing aquaculture ponds or lagoons through the removal of silt, or investments aimed at the prevention of silt deposits;

| (h) | the diversification of the income of aquaculture enterprises through the development of complementary activities; |
| --- | --- |

(h)

the diversification of the income of aquaculture enterprises through the development of complementary activities;

| (i) | investments resulting in a substantial reduction in the impact of aquaculture enterprises on water usage and quality, in particular through reducing the amount of water or chemicals, antibiotics and other medicines used, or through improving the output water quality, including through the deployment of multi–trophic aquaculture systems; |
| --- | --- |

(i)

investments resulting in a substantial reduction in the impact of aquaculture enterprises on water usage and quality, in particular through reducing the amount of water or chemicals, antibiotics and other medicines used, or through improving the output water quality, including through the deployment of multi–trophic aquaculture systems;

| (j) | the promotion of closed aquaculture systems where aquaculture products are farmed in closed recirculation systems, thereby minimising water use; |
| --- | --- |

(j)

the promotion of closed aquaculture systems where aquaculture products are farmed in closed recirculation systems, thereby minimising water use;

| (k) | investments increasing energy efficiency and promoting the conversion of aquaculture enterprises to renewable sources of energy. |
| --- | --- |

(k)

investments increasing energy efficiency and promoting the conversion of aquaculture enterprises to renewable sources of energy.

2.   Aid under paragraph 1, point (h), shall only be granted to aquaculture enterprises if the complementary activities relate to the core aquaculture business of the enterprise, including angling tourism, environmental services related to aquaculture or educational activities concerning aquaculture.

3.   Aid listed in paragraph 1 of this Article may be granted for investments that increase production and/or modernisation of existing aquaculture undertakings, or for the construction of new production capacity, provided that the development is consistent with the plan for the development of aquaculture referred to in Article 34 of Regulation (EU) No 1380/2013.

4.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation.Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 32

Aid to management, relief and advisory services for aquaculture farms

1.   Aid to management, relief and advisory services for aquaculture farms fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid improves the overall performance and competitiveness of aquaculture farms; |
| --- | --- |

(a)

the aid improves the overall performance and competitiveness of aquaculture farms;

| (b) | the aid reduces the negative environmental impact of aquaculture farms; |
| --- | --- |

(b)

the aid reduces the negative environmental impact of aquaculture farms;

| (c) | the aid supports the purchase of farm advisory services of a technical, scientific, legal, environmental or economic nature. It shall only be granted to aquaculture SMEs or aquaculture organisations, including aquaculture producer organisations and associations of aquaculture producer organisations. |
| --- | --- |

(c)

the aid supports the purchase of farm advisory services of a technical, scientific, legal, environmental or economic nature. It shall only be granted to aquaculture SMEs or aquaculture organisations, including aquaculture producer organisations and associations of aquaculture producer organisations.

2.   Advisory services referred to in paragraph 1, point (c), shall cover:

| (a) | the management needs to enable aquaculture farms to comply with Union and national environmental legislation, as well as with maritime spatial planning requirements; |
| --- | --- |

(a)

the management needs to enable aquaculture farms to comply with Union and national environmental legislation, as well as with maritime spatial planning requirements;

| (b) | environmental impact assessment as referred to in Directive 2011/92/EUof the European Parliament and of the Council (22) and Directive 92/43/EEC; |
| --- | --- |

(b)

environmental impact assessment as referred to in Directive 2011/92/EUof the European Parliament and of the Council (22) and Directive 92/43/EEC;

| (c) | the management needs to enable aquaculture farms to comply with Union and national aquatic animal health and welfare or public health legislation; |
| --- | --- |

(c)

the management needs to enable aquaculture farms to comply with Union and national aquatic animal health and welfare or public health legislation;

| (d) | standards based on Union and national legislation; |
| --- | --- |

(d)

standards based on Union and national legislation;

| (e) | marketing and business strategies. |
| --- | --- |

(e)

marketing and business strategies.

3.   Those services shall be provided by scientific or technical bodies, as well as by entities providing legal or economic advice with the required competences as recognised by the Member State.

4.   Beneficiaries shall not receive aid more than once per year for each category of advisory service listed in paragraph 2.

5.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 33

Aid to promote human capital and networking in aquaculture

1.   Aid for human capital and networking in aquaculture fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid supports the following:

| (a) | professional training, lifelong learning, the dissemination of scientific and technical knowledge and innovative practices, the acquisition of new professional skills in aquaculture and with regard to the reduction of the environment impact of aquaculture operations; |
| --- | --- |

(a)

professional training, lifelong learning, the dissemination of scientific and technical knowledge and innovative practices, the acquisition of new professional skills in aquaculture and with regard to the reduction of the environment impact of aquaculture operations;

| (b) | the improvement of working conditions and the promotion of occupational safety; |
| --- | --- |

(b)

the improvement of working conditions and the promotion of occupational safety;

| (c) | networking and exchange of experiences and best practices among aquaculture enterprises or professional organisations and other stakeholders, including scientific and technical bodies or those promoting equal opportunities between men and women. |
| --- | --- |

(c)

networking and exchange of experiences and best practices among aquaculture enterprises or professional organisations and other stakeholders, including scientific and technical bodies or those promoting equal opportunities between men and women.

2.   The aid referred to in paragraph 1, point (a), shall not be granted to large aquaculture enterprises, unless they are engaged in knowledge-sharing with SMEs that operate in aquaculture sector.

3.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 34

Increasing the potential of aquaculture sites

1.   Aid for increasing the potential of aquaculture sites in aquaculture fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid contributes positively to development of the aquaculture sites and infrastructures and reduces the negative environmental impact of the operations; |
| --- | --- |

(a)

the aid contributes positively to development of the aquaculture sites and infrastructures and reduces the negative environmental impact of the operations;

| (b) | the aid supports the following:






  (i) | the identification and mapping of the most suitable areas for developing aquaculture, taking into account, where applicable, spatial planning processes, and the identification and mapping of areas where aquaculture should be excluded in order to maintain the role of such areas in the functioning of the ecosystem; |
| --- | --- | --- |

(b)

the aid supports the following:

(i)

the identification and mapping of the most suitable areas for developing aquaculture, taking into account, where applicable, spatial planning processes, and the identification and mapping of areas where aquaculture should be excluded in order to maintain the role of such areas in the functioning of the ecosystem;

| (ii) | the improvement and development of support facilities and infrastructures required to increase the potential of aquaculture sites and to reduce the negative environmental impact of aquaculture, including investments in land consolidation, energy supply or water management; |
| --- | --- |

(ii)

the improvement and development of support facilities and infrastructures required to increase the potential of aquaculture sites and to reduce the negative environmental impact of aquaculture, including investments in land consolidation, energy supply or water management;

| (iii) | action taken and implemented by competent authorities under Article 9(1) of Directive 2009/147/EC or Article 16(1) of Directive 92/43/EEC, with the aim of preventing serious damage to aquaculture; |
| --- | --- |

(iii)

action taken and implemented by competent authorities under Article 9(1) of Directive 2009/147/EC or Article 16(1) of Directive 92/43/EEC, with the aim of preventing serious damage to aquaculture;

| (iv) | action taken and implemented by competent authorities following the detection of increased mortalities or diseases as provided for in Article 10 of Council Directive 2006/88/EC (23). Those actions may cover the adoption of shellfish action plans aimed at the protection, restoration and management, including support to shellfish producers for the maintenance, of natural shellfish banks and catchment areas. |
| --- | --- |

(iv)

action taken and implemented by competent authorities following the detection of increased mortalities or diseases as provided for in Article 10 of Council Directive 2006/88/EC (23). Those actions may cover the adoption of shellfish action plans aimed at the protection, restoration and management, including support to shellfish producers for the maintenance, of natural shellfish banks and catchment areas.

2.   Beneficiaries under this Article shall only be those undertakings who have been entrusted by the Member State with the tasks referred to in paragraph 1, point (b).

3.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 35

Encouraging new aquaculture farmers practising sustainable aquaculture

1.   Aid for encouraging new aquaculture farmers practising sustainable aquaculture fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided:

| (a) | the aid fosters entrepreneurship in aquaculture; |
| --- | --- |

(a)

the aid fosters entrepreneurship in aquaculture;

| (b) | the aid supports the setting-up of sustainable aquaculture enterprises by new aquaculture farmers. |
| --- | --- |

(b)

the aid supports the setting-up of sustainable aquaculture enterprises by new aquaculture farmers.

2.   Support shall be granted to aquaculture farmers entering the sector provided that they:

| (a) | possess adequate professional skills and competence; |
| --- | --- |

(a)

possess adequate professional skills and competence;

| (b) | set up for the first time an aquaculture micro or small enterprise, as managers of that enterprise; |
| --- | --- |

(b)

set up for the first time an aquaculture micro or small enterprise, as managers of that enterprise;

| (c) | submit a business plan for the development of their aquaculture activities. |
| --- | --- |

(c)

submit a business plan for the development of their aquaculture activities.

3.   In order to acquire adequate professional skills, aquaculture farmers entering the sector may benefit from support under Article 33(1).

4.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 36

Aid for the conversion to eco-management and audit schemes and organic aquaculture

1.   Aid for the conversion to eco-management and audit schemes and organic aquaculture fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided:

| (a) | the aid promotes the development of organic or energy–efficient aquaculture; |
| --- | --- |

(a)

the aid promotes the development of organic or energy–efficient aquaculture;

| (b) | the aid supports the following:






  (i) | the conversion of conventional aquaculture production methods into organic aquaculture within the meaning of Council Regulation (EC) No 834/2007 (24) and in accordance with Commission Regulation (EC) No 710/2009 (25); |
| --- | --- | --- |

(b)

the aid supports the following:

(i)

the conversion of conventional aquaculture production methods into organic aquaculture within the meaning of Council Regulation (EC) No 834/2007 (24) and in accordance with Commission Regulation (EC) No 710/2009 (25);

| (ii) | the participation in the Union eco-management and audit schemes (EMAS) in accordance with Regulation (EC) No 1221/2009 of the European Parliament and of the Council (26). |
| --- | --- |

(ii)

the participation in the Union eco-management and audit schemes (EMAS) in accordance with Regulation (EC) No 1221/2009 of the European Parliament and of the Council (26).

2.   The aid shall only be granted with regard to the conversion of beneficiaries who commit themselves to participate in the EMAS for a minimum of three years or to comply with the requirements of organic production for a minimum of five years.

3.   Aid shall take the form of compensation for a maximum of three years during the period of the conversion of the enterprise to organic production, or during the preparation for participation in the EMAS. Member States shall calculate that compensation on the basis of:

| (a) | the loss of revenue or additional costs incurred during the period of transition from conventional into organic production for operations eligible under paragraph 1, point (b)(i); or |
| --- | --- |

(a)

the loss of revenue or additional costs incurred during the period of transition from conventional into organic production for operations eligible under paragraph 1, point (b)(i); or

| (b) | the additional costs resulting from the application and preparation of the participation in EMAS for operations eligible under paragraph 1, point (b)(ii). |
| --- | --- |

(b)

the additional costs resulting from the application and preparation of the participation in EMAS for operations eligible under paragraph 1, point (b)(ii).

4.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 37

Aid to aquaculture providing environmental services

1.   Aid to aquaculture providing environmental services fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid fosters the development of aquaculture providing environmental services; |
| --- | --- |

(a)

the aid fosters the development of aquaculture providing environmental services;

| (b) | the aid supports the following:






  (i) | aquaculture methods compatible with specific environmental needs and subject to specific management requirements resulting from the designation of NATURA 2000 areas in accordance with Directives 92/43/EEC and 2009/147/EC; |
| --- | --- | --- |

(b)

the aid supports the following:

(i)

aquaculture methods compatible with specific environmental needs and subject to specific management requirements resulting from the designation of NATURA 2000 areas in accordance with Directives 92/43/EEC and 2009/147/EC;

| (ii) | participation, in terms of costs directly related thereto, in ex-situ conservation and reproduction of aquatic animals, within the framework of conservation and biodiversity restoration programmes developed by public authorities, or under their supervision; |
| --- | --- |

(ii)

participation, in terms of costs directly related thereto, in ex-situ conservation and reproduction of aquatic animals, within the framework of conservation and biodiversity restoration programmes developed by public authorities, or under their supervision;

| (iii) | aquaculture operations which include conservation and improvement of the environment and of biodiversity, and management of the landscape and traditional features of aquaculture zones. |
| --- | --- |

(iii)

aquaculture operations which include conservation and improvement of the environment and of biodiversity, and management of the landscape and traditional features of aquaculture zones.

2.   Aid under paragraph 1, point (b)(i), of this Article shall take the form of annual compensation for the additional costs incurred and/or income foregone as a result of management requirements in the areas concerned, related to the implementation of Directives 92/43/EEC or 2009/147/EC.

3.   Aid under paragraph 1, point (b)(iii), shall be granted only to beneficiaries who commit themselves for a minimum period of five years to aqua-environmental requirements that go beyond the mere application of Union and national law. The environmental benefits of the operation shall be demonstrated by a prior assessment conducted by competent bodies designated by the Member State, unless the environmental benefits of that operation are already recognised.

4.   Aid under paragraph 1, point (b)(iii), shall take the form of annual compensation for the additional costs incurred and/or income foregone.

5.   The results of operations receiving aid under this Article shall be adequately publicised by the Member State.

6.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 100 % of the total eligible expenditure of the operation.

Article 38

Aid for public health measures

1.   Aid for public health measures fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid supports a compensation scheme which compensates mollusc farmers for the temporary suspension of the harvesting of farmed molluscs, where such suspension occurs exclusively for reasons of public health.

2.   Support under paragraph 1 may only be granted where the closing of the classified production or relaying area, in accordance with Article 62 of Commission Implementing Regulation (EU) 2019/627 (27) is due to the proliferation of toxin-producing plankton or to the presence of plankton containing biotoxins exceeding the limits established in Annex III, Section VII, Chapter V of Regulation (EC) No 853/2004 of the European Parliament and of the Council (28), and provided that:

| (a) | the contamination lasts for more than four consecutive months; or |
| --- | --- |

(a)

the contamination lasts for more than four consecutive months; or

| (b) | the loss, resulting from the suspension of the harvest, amounts to more than 25 % of the annual turnover of the business concerned, calculated on the basis of the average turnover of that business over the three calendar years preceding the year in which the harvest was suspended; |
| --- | --- |

(b)

the loss, resulting from the suspension of the harvest, amounts to more than 25 % of the annual turnover of the business concerned, calculated on the basis of the average turnover of that business over the three calendar years preceding the year in which the harvest was suspended;

For the purposes of point (b) of the first subparagraph, Member States may establish special calculation rules in respect of companies with less than three years of activity.

3.   The duration for which compensation may be granted shall be a maximum of 12 months between 1 January 2021 and 31 December 2027. In duly justified cases, it may be extended once for a maximum of an additional 12 months up to a combined maximum of 24 months.

4.   The aid and any other payments received to compensate the damage, including payments under insurance policies, shall be limited to 100 % of the eligible costs.

Article 39

Aid for animal health and welfare measures

1.   Aid for animal health and welfare in aquaculture undertakings fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that.

| (a) | the aid aims at fostering animal health and welfare in aquaculture enterprises, inter alia, in terms of prevention and bio-security; |
| --- | --- |

(a)

the aid aims at fostering animal health and welfare in aquaculture enterprises, inter alia, in terms of prevention and bio-security;

| (b) | the aid supports the following:






  (i) | the costs of control and eradication of diseases in aquaculture listed in Article 5(1) of Regulation (EU) 2016/429 of the European Parliament and the of the Council (29), or in the Aquatic Animal Health Code of the World Organisation for Animal Health, including the operational costs necessary to fulfil the obligations in an eradication plan; |
| --- | --- | --- |

(b)

the aid supports the following:

(i)

the costs of control and eradication of diseases in aquaculture listed in Article 5(1) of Regulation (EU) 2016/429 of the European Parliament and the of the Council (29), or in the Aquatic Animal Health Code of the World Organisation for Animal Health, including the operational costs necessary to fulfil the obligations in an eradication plan;

| (ii) | the development of general and species-specific best practices or codes of conduct on bio-security or on animal health and animal welfare needs in aquaculture; |
| --- | --- |

(ii)

the development of general and species-specific best practices or codes of conduct on bio-security or on animal health and animal welfare needs in aquaculture;

| (iii) | initiatives aimed at reducing the dependence of aquaculture on veterinary medicine; |
| --- | --- |

(iii)

initiatives aimed at reducing the dependence of aquaculture on veterinary medicine;

| (iv) | veterinary or pharmaceutical studies and dissemination and exchange of information and best practices regarding veterinary diseases in aquaculture, with the aim of promoting an appropriate use of veterinary medicine; |
| --- | --- |

(iv)

veterinary or pharmaceutical studies and dissemination and exchange of information and best practices regarding veterinary diseases in aquaculture, with the aim of promoting an appropriate use of veterinary medicine;

| (v) | the establishment and operation of health protection groups in the aquaculture sector as recognised by Member States; |
| --- | --- |

(v)

the establishment and operation of health protection groups in the aquaculture sector as recognised by Member States;

| (vi) | compensation to mollusc farmers for the temporary suspension of their activities due to exceptional mass mortality, if the yearly mortality rate exceeds 20 %, or if the loss resulting from the suspension of the activity amounts to more than 35 % of the annual turnover of the business concerned, calculated on the basis of the average turnover of that business over the three calendar years preceding the year in which the activities were suspended. |
| --- | --- |

(vi)

compensation to mollusc farmers for the temporary suspension of their activities due to exceptional mass mortality, if the yearly mortality rate exceeds 20 %, or if the loss resulting from the suspension of the activity amounts to more than 35 % of the annual turnover of the business concerned, calculated on the basis of the average turnover of that business over the three calendar years preceding the year in which the activities were suspended.

2.   The aid under paragraph 1, point (b)(iv), shall not cover the purchase of veterinary medicines.

3.   The results of the studies financed under paragraph 1, point (b)(iv), shall be adequately reported and publicised by the Member State.

4.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 100 % of the total eligible expenditure of the operation.

Article 40

Aid for aquaculture stock insurance

1.   Aid for aquaculture stock insurance fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid promotes to safeguard the income of aquaculture producers; |
| --- | --- |

(a)

the aid promotes to safeguard the income of aquaculture producers;

| (b) | the aid contributes to an aquaculture stock insurance covering economic losses due to at least one of the following:






  (i) | natural disasters; |
| --- | --- | --- |

(b)

the aid contributes to an aquaculture stock insurance covering economic losses due to at least one of the following:

(i)

natural disasters;

| (ii) | adverse weather conditions; |
| --- | --- |

(ii)

adverse weather conditions;

| (iii) | sudden water quality and quantity changes for which the operator is not responsible; |
| --- | --- |

(iii)

sudden water quality and quantity changes for which the operator is not responsible;

| (iv) | diseases in aquaculture, failure or destruction of production facilities for which the operator is not responsible; |
| --- | --- |

(iv)

diseases in aquaculture, failure or destruction of production facilities for which the operator is not responsible;

| (v) | public health crises. |
| --- | --- |

(v)

public health crises.

2.   The occurrence of the circumstances referred to in paragraph 1, point (b), in aquaculture shall be formally recognised as such by the Member State concerned.

3.   Member States may, where appropriate, establish in advance criteria on the basis of which the formal recognition referred to in paragraph 2 shall be deemed to be granted.

4.   Support shall only be granted for aquaculture stock insurance contracts which cover economic losses, as referred to in paragraph 1, exceeding 30 % of the average annual turnover of the aquaculture farmer, calculated on the basis of the average turnover of the aquaculture farmer over the three calendar years preceding the year in which the economic losses occurred.

5.   The contributions referred to in paragraph 1, point (b), shall only relate to the amounts paid by the aquaculture stock insurance as financial compensation to a beneficiary and may cover up to 50 % thereof. The administrative costs of setting up the insurance shall not be eligible for support.

SECTION 3

SECTION 3

Marketing and processing related measures

Marketing and processing related measures

Article 41

Aid for marketing measures

1.   Aid for marketing measures fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the aid promotes marketing measures for fishery and aquaculture products; |
| --- | --- |

(a)

the aid promotes marketing measures for fishery and aquaculture products;

| (b) | the aid aims at:






  (i) | creating producer organisations, associations of producer organisations or inter-branch organisations to be recognised in accordance with Chapter II, Section II, of Regulation (EU) No 1379/2013; |
| --- | --- | --- |

(b)

the aid aims at:

(i)

creating producer organisations, associations of producer organisations or inter-branch organisations to be recognised in accordance with Chapter II, Section II, of Regulation (EU) No 1379/2013;

| (ii) | finding new markets and improving the conditions for the placing on the market of fishery and aquaculture products, including:






  — | species with marketing potential; |
| --- | --- | --- |

(ii)

finding new markets and improving the conditions for the placing on the market of fishery and aquaculture products, including:

—

species with marketing potential;

| — | unwanted catches landed from commercial stocks in accordance with technical measures, Article 15 of Regulation (EU) No 1380/2013 and Article 8(2), point (b), of Regulation (EU) No 1379/2013; |
| --- | --- |

—

unwanted catches landed from commercial stocks in accordance with technical measures, Article 15 of Regulation (EU) No 1380/2013 and Article 8(2), point (b), of Regulation (EU) No 1379/2013;

| — | fishery and aquaculture products obtained using methods with low impact on the environment, or organic aquaculture products within the meaning of Regulation (EC) No 834/2007; |
| --- | --- |

—

fishery and aquaculture products obtained using methods with low impact on the environment, or organic aquaculture products within the meaning of Regulation (EC) No 834/2007;

| (iii) | promoting the quality and the value added by facilitating:






  — | the application for registration of a given product and the adaptation of concerned operators to the relevant compliance and certification requirements in accordance with Regulation (EU) No 1151/2012 of the European Parliament and of the Council (30); |
| --- | --- | --- |

(iii)

promoting the quality and the value added by facilitating:

—

the application for registration of a given product and the adaptation of concerned operators to the relevant compliance and certification requirements in accordance with Regulation (EU) No 1151/2012 of the European Parliament and of the Council (30);

| — | the certification and the promotion of sustainable fishery and aquaculture products, including products from small–scale coastal fishing, and of environmentally-friendly processing methods; |
| --- | --- |

—

the certification and the promotion of sustainable fishery and aquaculture products, including products from small–scale coastal fishing, and of environmentally-friendly processing methods;

| — | the direct marketing of fishery products by small–scale coastal fishers or by on–foot fishers; |
| --- | --- |

—

the direct marketing of fishery products by small–scale coastal fishers or by on–foot fishers;

| — | the presentation and packaging of products; |
| --- | --- |

—

the presentation and packaging of products;

| (iv) | contributing to the transparency of production and the markets and conducting market surveys and studies on the Union’s dependence on imports; |
| --- | --- |

(iv)

contributing to the transparency of production and the markets and conducting market surveys and studies on the Union’s dependence on imports;

| (v) | contributing to the traceability of fishery or aquaculture products and, where relevant, the development of a Union–wide ecolabel for fishery and aquaculture products as referred to in Regulation (EU) No 1379/2013; |
| --- | --- |

(v)

contributing to the traceability of fishery or aquaculture products and, where relevant, the development of a Union–wide ecolabel for fishery and aquaculture products as referred to in Regulation (EU) No 1379/2013;

| (vi) | drawing up standard contracts for SMEs, which are compatible with Union law; |
| --- | --- |

(vi)

drawing up standard contracts for SMEs, which are compatible with Union law;

| (vii) | conducting regional, national or transnational communication and promotional campaigns, which are not aimed at commercial brands, to raise public awareness of sustainable fishery and aquaculture products. |
| --- | --- |

(vii)

conducting regional, national or transnational communication and promotional campaigns, which are not aimed at commercial brands, to raise public awareness of sustainable fishery and aquaculture products.

2.   The operations referred to in paragraph 1, point (b), may include the production, processing and marketing activities along the supply chain. The operations referred to in paragraph 1, point (b)(vii), shall not be aimed at commercial brands.

3.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 42

Aid for the processing of fishery and aquaculture products

1.   Aid for processing of fishery and aquaculture products fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid supports investments in the processing of fishery and aquaculture products.

2.   The aid under this Article aims at supporting measures that:

| (a) | contribute to energy saving or reducing the impact on the environment, including waste treatment; |
| --- | --- |

(a)

contribute to energy saving or reducing the impact on the environment, including waste treatment;

| (b) | improve safety, hygiene, health and working conditions; |
| --- | --- |

(b)

improve safety, hygiene, health and working conditions;

| (c) | support the processing of catches of commercial fish that cannot be destined for human consumption; |
| --- | --- |

(c)

support the processing of catches of commercial fish that cannot be destined for human consumption;

| (d) | relate to the processing of by-products resulting from main processing activities; |
| --- | --- |

(d)

relate to the processing of by-products resulting from main processing activities;

| (e) | relate to the processing of organic aquaculture products pursuant to Articles 6 and 7 of Regulation (EC) No 834/2007; |
| --- | --- |

(e)

relate to the processing of organic aquaculture products pursuant to Articles 6 and 7 of Regulation (EC) No 834/2007;

| (f) | lead to new or improved products, new or improved processes, or new or improved management and organisation systems. |
| --- | --- |

(f)

lead to new or improved products, new or improved processes, or new or improved management and organisation systems.

3.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the total eligible expenditure of the operation. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

SECTION 4

SECTION 4

Other categories of aid

Other categories of aid

Article 43

Aid for collection, management, use and processing of data in the fisheries sector

1.   Aid for collection, management, use and processing of biological, environmental, technical and socio-economic data in the fisheries sector fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid supports the collection, management and use of data, as provided for in Article 25(1) and (2) of Regulation (EU) No 1380/2013 and further specified in Regulation (EC) No 2017/1004.

2.   The following types of operations are eligible:

| (a) | the collection, management and use of data for the purpose of scientific analysis and implementation of the CFP; |
| --- | --- |

(a)

the collection, management and use of data for the purpose of scientific analysis and implementation of the CFP;

| (b) | national, transnational and subnational multiannual sampling programmes, provided that they relate to stocks covered by the CFP; |
| --- | --- |

(b)

national, transnational and subnational multiannual sampling programmes, provided that they relate to stocks covered by the CFP;

| (c) | at-sea monitoring of commercial and recreational fisheries, including monitoring of by-catch of marine organisms such as marine mammals and birds; |
| --- | --- |

(c)

at-sea monitoring of commercial and recreational fisheries, including monitoring of by-catch of marine organisms such as marine mammals and birds;

| (d) | research surveys at sea; |
| --- | --- |

(d)

research surveys at sea;

| (e) | the improvement of data collection and data management systems and the implementation of pilot studies to improve existing data collection and data management systems. |
| --- | --- |

(e)

the improvement of data collection and data management systems and the implementation of pilot studies to improve existing data collection and data management systems.

3.   The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 100 % of the total eligible expenditure of the operation.

Article 44

Aid to make good the damage caused by natural disasters

1.   Aid to make good the damage caused by natural disasters fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(2), point (b), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | the competent authority of the Member State has formally recognized the character of the event as a natural disaster; and |
| --- | --- |

(a)

the competent authority of the Member State has formally recognized the character of the event as a natural disaster; and

| (b) | there is a direct causal link between the natural disaster and the damage suffered by the undertaking. |
| --- | --- |

(b)

there is a direct causal link between the natural disaster and the damage suffered by the undertaking.

2.   Aid shall be paid directly to the undertaking concerned.

3.   Aid schemes related to a specific natural disaster shall be established within three years from the date of the occurrence of the natural disaster. The aid shall be paid out within four years from that date.

4.   The eligible costs shall be the damage incurred as a direct consequence of the natural disaster, as assessed either by a public authority, by an independent expert recognized by the granting authority or by an insurance undertaking. That damage may include the following:

| (a) | material damage to assets such as buildings, equipment, machinery, stocks and means of production; |
| --- | --- |

(a)

material damage to assets such as buildings, equipment, machinery, stocks and means of production;

| (b) | loss of income due to the full or partial destruction of fishery or aquaculture production or the means of such production not exceeding six months from the occurrence of the disaster. |
| --- | --- |

(b)

loss of income due to the full or partial destruction of fishery or aquaculture production or the means of such production not exceeding six months from the occurrence of the disaster.

5.   The calculation of the material damage shall be based on the repair cost or economic value of the affected asset before the disaster. It shall not exceed the repair cost or the decrease in fair market value caused by the natural disaster, namely the difference between the asset’s value immediately before and immediately after the disaster.

6.   The loss of income shall be calculated by subtracting:

| (a) | the result of multiplying the quantity of the fishery and aquaculture products produced in the year of the natural disaster, or in each following year affected by the full or partial destruction of the means of production, by the average selling price obtained during that year; from |
| --- | --- |

(a)

the result of multiplying the quantity of the fishery and aquaculture products produced in the year of the natural disaster, or in each following year affected by the full or partial destruction of the means of production, by the average selling price obtained during that year; from

| (b) | the result of multiplying the average annual quantity of fishery and aquaculture products produced in the three-year period preceding the natural disaster, or a three year average based on the five-year period preceding the natural disaster, excluding the highest and lowest entry, by the average selling price obtained. |
| --- | --- |

(b)

the result of multiplying the average annual quantity of fishery and aquaculture products produced in the three-year period preceding the natural disaster, or a three year average based on the five-year period preceding the natural disaster, excluding the highest and lowest entry, by the average selling price obtained.

7.   The damage shall be calculated at the level of the individual undertaking.

8.   The aid and any other payments received to compensate the damage, including payments under insurance policies, shall be limited to 100 % of the eligible costs.

Article 45

Aid to make good the damage caused by adverse weather conditions which can be assimilated to a natural disaster

1.   Aid to make good the damage caused by adverse weather conditions which can be assimilated to a natural disaster fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in paragraphs 2 to 11 of this Article.

2.   Aid to make good damage caused by adverse weather conditions which can be assimilated to a natural disaster is a suitable tool to help undertakings recover from such damage and facilitate the development of economic activities without adversely affecting the trading conditions to an extent contrary to the common interest, subject to the following conditions:

| (a) | the competent authority of the Member State has formally recognized the character of the adverse weather condition as a weather condition which can be assimilated to a natural disaster; |
| --- | --- |

(a)

the competent authority of the Member State has formally recognized the character of the adverse weather condition as a weather condition which can be assimilated to a natural disaster;

| (b) | there is a direct causal link between the adverse weather condition which can be assimilated to a natural disaster and the damage suffered by the undertaking. |
| --- | --- |

(b)

there is a direct causal link between the adverse weather condition which can be assimilated to a natural disaster and the damage suffered by the undertaking.

3.   For the purposes of this Article, adverse weather condition which can be assimilated to a natural disaster means unfavourable weather conditions such as frost, storms, hail, ice, heavy and persistent rain or severe drought which reduce by more than 30 % the average of the production calculated on the basis of one of the following:

| (a) | the preceeding three-year period; |
| --- | --- |

(a)

the preceeding three-year period;

| (b) | a three year average based on the preceding five-year period, excluding the highest and the lowest entry. |
| --- | --- |

(b)

a three year average based on the preceding five-year period, excluding the highest and the lowest entry.

4.   The aid shall be paid directly to the undertaking concerned.

5.   Aid schemes shall be established within three years from the date of the occurrence of the adverse weather condition which can be assimilated to a natural disaster. The aid shall be paid out within four years from that date.

6.   The eligible costs shall be the damage incurred as a direct consequence of the adverse weather condition which can be assimilated to a natural disaster, as assessed either by a public authority, by an independent expert recognized by the granting authority or by an insurance undertaking. That damage may include the following:

| (a) | material damage to assets such as buildings, equipment, machinery, stocks and means of production; |
| --- | --- |

(a)

material damage to assets such as buildings, equipment, machinery, stocks and means of production;

| (b) | loss of income due to the full or partial destruction of fishery or aquaculture production or the means of such production for a period not exceeding six months from the occurrence of the adverse weather condition which can be assimilated to a natural disaster. |
| --- | --- |

(b)

loss of income due to the full or partial destruction of fishery or aquaculture production or the means of such production for a period not exceeding six months from the occurrence of the adverse weather condition which can be assimilated to a natural disaster.

7.   The calculation of the material damage shall be based on the repair cost or economic value of the affected asset before the adverse weather condition which can be assimilated to a natural disaster. It shall not exceed the repair cost or the decrease in fair market value caused by the adverse weather condition which can be assimilated to a natural disaster, namely the difference between the asset’s value immediately before and immediately after the adverse weather condition which can be assimilated to a natural disaster.

8.   The loss of income shall be calculated by subtracting:

| (a) | the result of multiplying the quantity of the fishery and aquaculture products produced in the year of the adverse weather condition which can be assimilated to a natural disaster, or in each following year affected by the full or partial destruction of the means of production, by the average selling price obtained during that year; from |
| --- | --- |

(a)

the result of multiplying the quantity of the fishery and aquaculture products produced in the year of the adverse weather condition which can be assimilated to a natural disaster, or in each following year affected by the full or partial destruction of the means of production, by the average selling price obtained during that year; from

| (b) | the result of multiplying the average annual quantity of fishery and aquaculture products produced in the three-year period preceding the adverse weather condition which can be assimilated to a natural disaster, or a three year average based on the five-year period preceding the adverse weather condition which can be assimilated to a natural disaster, excluding the highest and lowest entry, by the average selling price obtained. |
| --- | --- |

(b)

the result of multiplying the average annual quantity of fishery and aquaculture products produced in the three-year period preceding the adverse weather condition which can be assimilated to a natural disaster, or a three year average based on the five-year period preceding the adverse weather condition which can be assimilated to a natural disaster, excluding the highest and lowest entry, by the average selling price obtained.

9.   The damage shall be calculated at the level of the individual undertaking.

10.   In the case of losses caused by adverse weather conditions referred to in Article 20, the Member State shall justify why it intends to grant aid rather than financial compensation being paid through mutual funds for adverse weather conditions.

11.   The aid and any other payments received to compensate the damage, including payments under insurance policies, shall be limited to 100 % of the eligible costs.

Article 46

Aid to compensate for the damage caused by protected animals

1.   Aid to compensate for the damage caused by protected animals fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

| (a) | there is a direct established causal link between the damage suffered and the behaviour of the protected animal; |
| --- | --- |

(a)

there is a direct established causal link between the damage suffered and the behaviour of the protected animal;

| (b) | the eligible costs are the costs of the damage incurred as a direct consequence of the event that caused the damage, as assessed either by a public authority, by an independent expert recognized by the granting authority or by an insurance undertaking. |
| --- | --- |

(b)

the eligible costs are the costs of the damage incurred as a direct consequence of the event that caused the damage, as assessed either by a public authority, by an independent expert recognized by the granting authority or by an insurance undertaking.

2.   The damage to be compensated may include the following:

| (a) | damage for animals killed: the eligible costs are based on the market value of the animal killed by the protected animals; |
| --- | --- |

(a)

damage for animals killed: the eligible costs are based on the market value of the animal killed by the protected animals;

| (b) | the material damage to the following assets: equipment, machinery, property; the calculation of the material damage must be based on the repair cost or economic value of the affected asset before the event that caused the damage; it must not exceed the repair cost or the decrease in fair market value caused by the event causing the damage, that is to say the difference between the assets’s value immediately before and immediately after the event. |
| --- | --- |

(b)

the material damage to the following assets: equipment, machinery, property; the calculation of the material damage must be based on the repair cost or economic value of the affected asset before the event that caused the damage; it must not exceed the repair cost or the decrease in fair market value caused by the event causing the damage, that is to say the difference between the assets’s value immediately before and immediately after the event.

3.   A reasonable effort from the beneficiaries is requested to mitigate the risk of distortions of competition and to provide an incentive for minimising the risk. This effort shall take the form of preventive measures, such as safety fences, which are proportionate to the risk of damage caused by protected animals in the area concerned, unless such measures are not reasonably possible.

4.   Aid shall be paid directly to the undertaking concerned or to a producer group or organisation of which that undertaking is a member. Where the aid is paid to a producer group and organisation, the amount of aid shall not exceed the amount of aid to which that undertaking is eligible.

5.   The aid scheme shall be established within a period of three years from the date of the occurrence of the damaging event. The aid shall be paid out within four years from that date.

6.   The aid and any other payments received to compensate the damage, including payments under insurance policies, shall be limited to 100 % of the eligible costs.

CHAPTER IV

TRANSITIONAL AND FINAL PROVISIONS

TRANSITIONAL AND FINAL PROVISIONS

Article 47

Repeal

Regulation (EC) No 1388/2014 shall be repealed.

Article 48

Transitional provisions

1.   This Regulation shall apply to individual aid granted before its entry into force, if the aid fulfills all the conditions laid down in this Regulation, with the exception of Article 9.

2.   Any aid not exempted from the notification requirement of Article 108(3) TFEU by virtue of this Regulation or other regulations adopted pursuant to Article 1 of Regulation (EU) 2015/1588 previously in force shall be assessed by the Commission in accordance with the relevant frameworks, guidelines, communications and notices.

3.   Any individual aid granted before 1 January 2023 by virtue of any regulation adopted pursuant to Article 1 of Regulation (EU) 2015/1588 previously in force at the time of granting the aid shall be compatible with the internal market and exempted from the notification requirement of Article 108(3) TFEU.

4.   At the end of the period of validity of this Regulation, any aid schemes exempted under this Regulation shall remain exempted during an adjustment period of six months.

Article 49

Entry into force and applicability

This Regulation shall enter into force on 1 January 2023.

It shall apply until 31 December 2027.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, ...

For the Commission

The President

Ursula VON DER LEYEN

---

(1)  OJ L 248, 24.9.2015, p. 1.

1

(2)  OJ C ...

2

(3)  Council Regulation (EC) No 994/98 of 7 May 1998 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to certain categories of horizontal State aid (OJ L 142, 14.5.1998, p. 1).

3

(4)  Commission Regulation (EU) No 1388/2014 of 16 December 2014 declaring certain categories of aid to undertakings active in the production, processing and marketing of fishery and aquaculture products compatible with the internal market in application of Article 107 and 108 of the Treaty on the Functioning of the European Union (OJ L 369, 24.12.2014, p. 37).

4

(5)  Regulation (EU) No 1380/2013 of the European Parliament and of the Council of 11 December 2013 on the Common Fisheries Policy, amending Council Regulations (EC) No 1954/2003 and (EC) No 1224/2009 and repealing Council Regulations (EC) No 2371/2002 and (EC) No 639/2004 and Council Decision 2004/585/EC (OJ L 354, 28.12.2013, p. 22).

5

(6)  Regulation (EU) 2021/1139 of the European Parliament and of the Council of 7 July 2021 establishing the European Maritime, Fisheries and Aquaculture Fund and amending Regulation (EU) 2017/1004 (OJ L 247, 13.7.2021, p. 1).

6

(7)  OJ C 217, 2.7.2015, p. 1.

7

(8)  Communication from the Commission — Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (OJ C 249, 31.7.2014, p. 1).

8

(9)  OJ C 155, 20.6.2008, p. 10.

9

(10)  OJ C 14, 19.1.2008, p. 6.

10

(11)  Directive (EU) 2019/1024 of the European Parliament and of the Council of 20 June 2019 on open data and the re-use of public sector information (OJ L 172, 26.6.2019, p. 56).

11

(12)  Council Regulation (EU) 2015/1589 of 13 July 2015 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union (codification).

12

(13)  Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium sized enterprises (OJ L 124, 20.5.2003, p. 36).

13

(14)  Regulation (EU) No 1379/2013 of the European Parliament and of the Council of 11 December 2013 on the common organisation of the markets in fishery and aquaculture products, amending Council Regulations (EC) No 1184/2006 and (EC) No 1224/2009 and repealing Council Regulation (EC) No 104/2000 (OJ L 354, 28.12.2013, p. 1).

14

(15)  Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

15

(16)  Regulation (EU) No 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159).

16

(17)  Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EC) No 659/1999 laying down detailed rules for the application of Article 93 of the EC Treaty (OJ L 140, 30.4.2004, p. 1).

17

(18)  Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (OJ L 206, 22.7.1992, p. 7).

18

(19)  Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7).

19

(20)  Commission Communication, Green Infrastructure (GI) — Enhancing Europe’s Natural Capital, Brussels, COM(2013) 249 final, 6 May 2013.

20

(21)  Directive 60/2000/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1).

21

(22)  Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1).

22

(23)  Council Directive 2006/88/EC of 24 October 2006 on animal health requirements for aquaculture animals and products thereof, and on the prevention and control of certain diseases in aquatic animals (OJ L 328, 24.11.2006, p. 14).

23

(24)  Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products and repealing Regulation (EEC) No 2092/91 (OJ L 189, 20.7.2007, p. 1).

24

(25)  Commission Regulation (EC) No 710/2009 of 5 August 2009 amending Regulation (EC) No 889/2008 laying down detailed rules for the implementation of Council Regulation (EC) No 834/2007, as regards laying down detailed rules on organic aquaculture animal and seaweed production (OJ L 204, 6.8.2009, p. 15).

25

(26)  Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25 November 2009 on the voluntary participation by organisations in a Community eco-management and audit scheme (EMAS), repealing Regulation (EC) No 761/2001 and Commission Decisions 2001/681/EC and 2006/193/EC (OJ L 342, 22.12.2009, p. 1).

26

(27)  Commission Implementing Regulation (EU) 2019/627 of 15 March 2019 laying down uniform practical arrangements for the performance of official controls on products of animal origin intended for human consumption in accordance with Regulation (EU) 2017/625 of the European Parliament and of the Council and amending Commission Regulation (EC) No 2074/2005 as regards official controls (OJ L 131, 17.5.2019, p. 51).

27

(28)  Regulation (EC) No 853/2004 of the European Parliament and of the Council of 29 April 2004 laying down specific hygiene rules for food of animal origin (OJ L 139, 30.4.2004, p. 55).

28

(29)  Regulation (EU) 2016/429 of the European Parliament and of the Council of 9 March 2016 on transmissible animal diseases and amending and repealing certain acts in the area of animal health (Animal Health Law) (OJ L 84, 31.3.2016, p. 1).

29

(30)  Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs (OJ L 343, 14.12.2012, p. 1).

30

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ANNEX I

Small and medium-sized enterprises (SMEs)

1.   Enterprise

An enterprise is considered to be any entity engaged in an economic activity, irrespective of its legal form. This includes, in particular, self-employed persons and family businesses engaged in craft or other activities, and partnerships or associations regularly engaged in an economic activity.

2.   Staff headcount and financial thresholds determining enterprise categories

| 2.1. | The category of micro, small and medium-sized enterprises (‘SMEs’) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million. |
| --- | --- |

2.1.

| 2.2. | Within the SME category, a small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million. |
| --- | --- |

2.2.

| 2.3. | Within the SME category, a micro-enterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million. |
| --- | --- |

2.3.

3.   Types of enterprise taken into consideration in calculating staff numbers and financial amounts

| 3.1. | An ‘autonomous enterprise’ is any enterprise which is not classified as a partner enterprise within the meaning of point 3.2 or as a linked enterprise within the meaning of point 3.3. |
| --- | --- |

3.1.

| 3.2. | ‘Partner enterprises’ are all enterprises which are not classified as linked enterprises within the meaning of point 3.3 and between which there is the following relationship: an enterprise (upstream enterprise) holds, either solely or jointly with one or more linked enterprises within the meaning of point 3.3, 25 % or more of the capital or voting rights of another enterprise (downstream enterprise).
  However, an enterprise may be ranked as autonomous, and thus as not having any partner enterprises, even if this 25 % threshold is reached or exceeded by the following investors, provided that those investors are not linked, within the meaning of paragraph 3, either individually or jointly to the enterprise in question:






  (a) | public investment corporations, venture capital companies, individuals or groups of individuals with a regular venture capital investment activity who invest equity capital in unquoted businesses (business angels), provided the total investment of those business angels in the same enterprise is less than EUR 1 250 000; |
| --- | --- | --- |

3.2.

However, an enterprise may be ranked as autonomous, and thus as not having any partner enterprises, even if this 25 % threshold is reached or exceeded by the following investors, provided that those investors are not linked, within the meaning of paragraph 3, either individually or jointly to the enterprise in question:

(a)

public investment corporations, venture capital companies, individuals or groups of individuals with a regular venture capital investment activity who invest equity capital in unquoted businesses (business angels), provided the total investment of those business angels in the same enterprise is less than EUR 1 250 000;

| (b) | universities or non-profit research centres; |
| --- | --- |

(b)

universities or non-profit research centres;

| (c) | institutional investors, including regional development funds; |
| --- | --- |

(c)

institutional investors, including regional development funds;

| (d) | autonomous local authorities with an annual budget of less than EUR 10 million and less than 5 000 inhabitants. |
| --- | --- |

(d)

autonomous local authorities with an annual budget of less than EUR 10 million and less than 5 000 inhabitants.

| 3.3. | ‘Linked enterprises’ are enterprises which have any of the following relationships with each other:






  (a) | an enterprise has a majority of the shareholders’ or members’ voting rights in another enterprise; |
| --- | --- | --- |

3.3.

(a)

an enterprise has a majority of the shareholders’ or members’ voting rights in another enterprise;

| (b) | an enterprise has the right to appoint or remove a majority of the members of the administrative, management or supervisory body of another enterprise; |
| --- | --- |

(b)

an enterprise has the right to appoint or remove a majority of the members of the administrative, management or supervisory body of another enterprise;

| (c) | an enterprise has the right to exercise a dominant influence over another enterprise pursuant to a contract entered into with that enterprise or to a provision in its memorandum or articles of association; |
| --- | --- |

(c)

an enterprise has the right to exercise a dominant influence over another enterprise pursuant to a contract entered into with that enterprise or to a provision in its memorandum or articles of association;

| (d) | an enterprise, which is a shareholder in or member of another enterprise, controls alone, pursuant to an agreement with other shareholders in or members of that enterprise, a majority of shareholders’ or members’ voting rights in that enterprise.
  There is a presumption that no dominant influence exists if the investors listed in the second subparagraph of point 3.2 are not involving themselves directly or indirectly in the management of the enterprise in question, without prejudice to their rights as shareholders.
  Enterprises having any of the relationships described in the first subparagraph through one or more other enterprises, or any one of the investors referred to in point 3.2, are also considered to be linked.
  Enterprises which have one or other of such relationships through a natural person or group of natural persons acting jointly are also considered linked enterprises if they engage in their activity or in part of their activity in the same relevant market or in adjacent markets.
  An ‘adjacent market’ is considered to be the market for a product or service situated directly upstream or downstream of the relevant market. |
| --- | --- |

(d)

an enterprise, which is a shareholder in or member of another enterprise, controls alone, pursuant to an agreement with other shareholders in or members of that enterprise, a majority of shareholders’ or members’ voting rights in that enterprise.

There is a presumption that no dominant influence exists if the investors listed in the second subparagraph of point 3.2 are not involving themselves directly or indirectly in the management of the enterprise in question, without prejudice to their rights as shareholders.

Enterprises having any of the relationships described in the first subparagraph through one or more other enterprises, or any one of the investors referred to in point 3.2, are also considered to be linked.

Enterprises which have one or other of such relationships through a natural person or group of natural persons acting jointly are also considered linked enterprises if they engage in their activity or in part of their activity in the same relevant market or in adjacent markets.

An ‘adjacent market’ is considered to be the market for a product or service situated directly upstream or downstream of the relevant market.

| 3.4. | Except in the cases set out in point 3.2, second subparagraph, an enterprise cannot be considered an SME if 25 % or more of the capital or voting rights are directly or indirectly controlled, jointly or individually, by one or more public bodies. |
| --- | --- |

3.4.

| 3.5. | Enterprises may make a declaration of status as an autonomous enterprise, partner enterprise or linked enterprise, including the data regarding the thresholds set out in point 2. The declaration may be made even if the capital is spread in such a way that it is not possible to determine exactly by whom it is held, in which case the enterprise may declare in good faith that it can legitimately presume that it is not owned as to 25 % or more by one enterprise or jointly by enterprises linked to one another. Such declarations are made without prejudice to the checks and investigations provided for by national or Union rules. |
| --- | --- |

3.5.

4.   Data used for the staff headcount and the financial amounts and reference period

| 4.1. | The data to apply to the headcount of staff and the financial amounts are those relating to the latest approved accounting period and calculated on an annual basis. They are taken into account from the date of closure of the accounts. The amount selected for the turnover is calculated excluding value added tax (VAT) and other indirect taxes. |
| --- | --- |

4.1.

| 4.2. | Where, at the date of closure of the accounts, an enterprise finds that, on an annual basis, it has exceeded or fallen below the headcount or financial thresholds stated in point 2, this will not result in the loss or acquisition of the status of medium-sized, small or micro-enterprise unless those thresholds are exceeded over two consecutive accounting periods. |
| --- | --- |

4.2.

| 4.3. | In the case of newly-established enterprises whose accounts have not yet been approved, the data to apply is to be derived from a bona fide estimate made in the course of the financial year. |
| --- | --- |

4.3.

5.   Staff headcount

The headcount corresponds to the number of annual work units (AWU), i.e. the number of persons who worked full-time within the enterprise in question or on its behalf during the entire reference year under consideration. The work of persons who have not worked the full year, the work of those who have worked part-time, regardless of duration, and the work of seasonal workers are counted as fractions of AWU. The staff consists of:

| (a) | employees; |
| --- | --- |

(a)

employees;

| (b) | persons working for the enterprise being subordinated to it and deemed to be employees under national law; |
| --- | --- |

(b)

persons working for the enterprise being subordinated to it and deemed to be employees under national law;

| (c) | owner-managers; |
| --- | --- |

(c)

owner-managers;

| (d) | partners engaging in a regular activity in the enterprise and benefiting from financial advantages from the enterprise.
  Apprentices or students engaged in vocational training with an apprenticeship or vocational training contract are not included as staff. The duration of maternity or parental leaves is not counted. |
| --- | --- |

(d)

partners engaging in a regular activity in the enterprise and benefiting from financial advantages from the enterprise.

Apprentices or students engaged in vocational training with an apprenticeship or vocational training contract are not included as staff. The duration of maternity or parental leaves is not counted.

6.   Establishing the data of an enterprise

| 6.1. | In the case of an autonomous enterprise, the data, including the number of staff, are determined exclusively on the basis of the accounts of that enterprise. |
| --- | --- |

6.1.

| 6.2. | The data, including the headcount, of an enterprise having partner enterprises or linked enterprises are determined on the basis of the accounts and other data of the enterprise or, where they exist, the consolidated accounts of the enterprise, or the consolidated accounts in which the enterprise is included through consolidation.
  To the data referred to in the first subparagraph are added the data of any partner enterprise of the enterprise in question situated immediately upstream or downstream from it. Aggregation is proportional to the percentage interest in the capital or voting rights (whichever is greater). In the case of cross-holdings, the greater percentage applies.
  To the data referred to in the first and second subparagraph are added 100 % of the data of any enterprise, which is linked directly or indirectly to the enterprise in question, where the data were not already included through consolidation in the accounts. |
| --- | --- |

6.2.

To the data referred to in the first subparagraph are added the data of any partner enterprise of the enterprise in question situated immediately upstream or downstream from it. Aggregation is proportional to the percentage interest in the capital or voting rights (whichever is greater). In the case of cross-holdings, the greater percentage applies.

To the data referred to in the first and second subparagraph are added 100 % of the data of any enterprise, which is linked directly or indirectly to the enterprise in question, where the data were not already included through consolidation in the accounts.

| 6.3. | For the application of point 6.2:






  (a) | the data of the partner enterprises of the enterprise in question are derived from their accounts and their other data, consolidated if they exist. To these are added 100 % of the data of enterprises which are linked to these partner enterprises, unless their accounts data are already included through consolidation; |
| --- | --- | --- |

6.3.

(a)

the data of the partner enterprises of the enterprise in question are derived from their accounts and their other data, consolidated if they exist. To these are added 100 % of the data of enterprises which are linked to these partner enterprises, unless their accounts data are already included through consolidation;

| (b) | the data of the enterprises which are linked to the enterprise in question are to be derived from their accounts and their other data, consolidated if they exist. To these are added, pro rata, the data of any possible partner enterprise of that linked enterprise, situated immediately upstream or downstream from it, unless it has already been included in the consolidated accounts with a percentage at least proportional to the percentage identified under the second subparagraph of point 6.2. |
| --- | --- |

(b)

the data of the enterprises which are linked to the enterprise in question are to be derived from their accounts and their other data, consolidated if they exist. To these are added, pro rata, the data of any possible partner enterprise of that linked enterprise, situated immediately upstream or downstream from it, unless it has already been included in the consolidated accounts with a percentage at least proportional to the percentage identified under the second subparagraph of point 6.2.

| 6.4. | Where in the consolidated accounts no staff data appear for a given enterprise, staff figures are calculated by aggregating proportionally the data from its partner enterprises and by adding the data from the enterprises to which the enterprise in question is linked. |
| --- | --- |

6.4.

---

ANNEX II

Information regarding State aid exempt under the conditions of this Regulation to be provided through the established Commission IT application as laid down in Article 11

| Aid reference | (to be completed by the Commission) |
| --- | --- |
| Member State | |
| Member State reference number | |
| Region | Name of the Region(s) (NUTS

   (1)) | |
| Granting authority | Name | |
| Postal address Web address | |
| Title of the aid measure | |
| National legal basis (Reference to the relevant national official publication) | |
| Web link to the full text of the aid measure | |
| Type of measure | ☐ | Scheme |

Aid reference

(to be completed by the Commission)

Member State

Member State reference number

Region

Name of the Region(s) (NUTS

   (1))

Granting authority

Name

Postal address Web address

Title of the aid measure

National legal basis (Reference to the relevant national official publication)

Web link to the full text of the aid measure

Type of measure

☐

Scheme

| ☐ | Ad hoc aid |
| --- | --- |

☐

Ad hoc aid

Name of the beneficiary and the group
   (2)
  it belongs to

Amendment of an existing aid scheme or ad hoc aid

Commission aid reference

| ☐ | Prolongation |
| --- | --- |

☐

Prolongation

| ☐ | Modification |
| --- | --- |

☐

Modification

| Duration
   (3) | ☐ | Scheme |
| --- | --- | --- |

Duration
   (3)

☐

Scheme

dd/mm/yyyy to dd/mm/yyyy

Date of granting

| ☐ | Ad hoc aid |
| --- | --- |

☐

Ad hoc aid

dd/mm/yyyy

Economic sector(s) concerned

| ☐ | All economic sectors eligible to receive aid |
| --- | --- |

☐

All economic sectors eligible to receive aid

| ☐ | Limited to certain sectors: Please specify at NACE group level
   (4) |
| --- | --- |

☐

Limited to certain sectors: Please specify at NACE group level
   (4)

Type of beneficiary

| ☐ | SME |
| --- | --- |

☐

SME

| ☐ | Large undertakings |
| --- | --- |

☐

Large undertakings

Budget

Total annual amount of the budget planned under the scheme
   (5)

National currency (full amounts)

Overall amount of the ad hoc aid awarded to the undertaking
   (6)

National currency (full amounts)

| ☐ | For guarantees
   (7) |
| --- | --- |

☐

For guarantees
   (7)

National currency (full amounts)

Aid instrument

| ☐ | Grant/Interest rate subsidy |
| --- | --- |

☐

Grant/Interest rate subsidy

| ☐ | Loan/Repayable advances |
| --- | --- |

☐

Loan/Repayable advances

| ☐ | Guarantee (where appropriate with a reference to the Commission decision
   (8)) |
| --- | --- |

☐

Guarantee (where appropriate with a reference to the Commission decision
   (8))

| ☐ | Tax advantage or tax exemption |
| --- | --- |

☐

Tax advantage or tax exemption

| ☐ | Other (please specify) |
| --- | --- |

☐

Other (please specify)

Indicate to which broad category below it would fit best in terms of its effect/function:

| ☐ | Grant |
| --- | --- |

☐

Grant

| ☐ | Loan |
| --- | --- |

☐

Loan

| ☐ | Guarantee |
| --- | --- |

☐

Guarantee

| ☐ | Tax advantage |
| --- | --- |

☐

Tax advantage

| Indicate which of Articles 14 to 46 is used | ☐ | list of Articles |
| --- | --- | --- |

Indicate which of Articles 14 to 46 is used

☐

list of Articles

Aid to make good the damage caused by natural disasters (Article 44)

Type of natural disaster:

| ☐ | earthquake |
| --- | --- |

☐

earthquake

| ☐ | avalanche |
| --- | --- |

☐

avalanche

| ☐ | landslide |
| --- | --- |

☐

landslide

| ☐ | flood |
| --- | --- |

☐

flood

| ☐ | tornado |
| --- | --- |

☐

tornado

| ☐ | hurricane |
| --- | --- |

☐

hurricane

| ☐ | volcanic eruption |
| --- | --- |

☐

volcanic eruption

| ☐ | wild fire |
| --- | --- |

☐

wild fire

Date of the occurrence of the natural disaster

dd/mm/yyyy to dd/mm/yyyy

Motivation

Indicate why a State aid scheme has been established or an ad-hoc aid has been granted, instead of assistance under the European Maritime, Fisheries and Aquaculture Fund (EMFAF):

| ☐ | measure not covered by the national operational programme; |
| --- | --- |

☐

measure not covered by the national operational programme;

| ☐ | prioritisation in the allocation of funds under the national operational programme; |
| --- | --- |

☐

prioritisation in the allocation of funds under the national operational programme;

| ☐ | funding no longer available under the EMFAF; |
| --- | --- |

☐

funding no longer available under the EMFAF;

| ☐ | other (please specify) |
| --- | --- |

☐

other (please specify)

---

(1)  NUTS – Nomenclature of Territorial Units for Statistics. Typically, the region is specified at level 2.

(2)  An undertaking for the purposes of rules on competition laid down in the Treaty and for the purposes of this Regulation is any entity engaged in an economic activity, regardless of its legal status and the way in which it is financed. The Court of Justice has ruled that entities which are controlled (on a legal or on a de facto basis) by the same entity should be considered as one undertaking

(3)  Period during which the granting authority can commit itself to grant the aid.

(4)  NACE Rev. 2 – Statistical classification of Economic Activities in the European Union. Typically, the sector shall be specified at group level.

(5)  In case of aid scheme: Indicate the annual overall amount of the budget planned under the scheme or the estimated tax loss per year for all aid instruments contained in the scheme.

(6)  In case of an ad hoc aid award: Indicate the overall aid amount/tax loss.

(7)  For guarantees, indicate the (maximum) amount of loans guaranteed.

(8)  Where appropriate, reference to the Commission decision approving the methodology to calculate the gross grant equivalent, in accordance with Article 5(2)(c).

---

ANNEX III

Provisions for the publication of information referred to in Article 9(1)

Member States shall organise their comprehensive State aid websites, on which the information referred to in Article 9(1) is to be published, in a way to allow easy access to the information.

Information shall be published in a spreadsheet data format, which allows data to be searched, extracted and easily published on the Internet, for instance in CSV or XML format. Access to the website shall be allowed to any interested party without restrictions. No prior user registration shall be required to access the website.

The following information on individual aid awards referred to in Article 9(1), point (c), shall be published:

| — | Name of the beneficiary; |
| --- | --- |

—

Name of the beneficiary;

| — | Beneficiary’s identifier; |
| --- | --- |

—

Beneficiary’s identifier;

| — | Type of enterprise (SME/large) at the date of granting; |
| --- | --- |

—

Type of enterprise (SME/large) at the date of granting;

| — | Region in which the beneficiary is located, at NUTS level II (1); |
| --- | --- |

—

Region in which the beneficiary is located, at NUTS level II (1);

| — | Sector of activity at NACE group level (2); |
| --- | --- |

—

Sector of activity at NACE group level (2);

| — | Aid element, expressed as full amount in national currency (3); |
| --- | --- |

—

Aid element, expressed as full amount in national currency (3);

| — | Aid instrument (4) (grant/interest rate subsidy, loan/repayable advances/reimbursable grant, guarantee, tax advantage or tax exemption, other (please specify)); |
| --- | --- |

—

Aid instrument (4) (grant/interest rate subsidy, loan/repayable advances/reimbursable grant, guarantee, tax advantage or tax exemption, other (please specify));

| — | Date of granting; |
| --- | --- |

—

Date of granting;

| — | Objective of the aid; |
| --- | --- |

—

Objective of the aid;

| — | Granting authority. |
| --- | --- |

—

Granting authority.

---

(1)  NUTS – Nomenclature of Territorial Units for Statistics. Typically, the region is specified at level 2.

(2)  Council Regulation (EEC) No 3037/90 of 9 October 1990 on statistical classification of economic activities in the European Community (OJ L 293, 24.10.1990, p. 1).

(3)  Gross grant equivalent. For fiscal schemes, this amount can be provided by the ranges set out in Article 9(2).

(4)  If the aid is granted through multiple aid instruments, the aid amount shall be provided by instrument.

---

ANNEX IV

Specific maximum aid intensity rates

| Row | Specific category of operation | Maximum aid intensity rate |
| --- | --- | --- |
| | | |
| 1 | The following operations contributing to the implementation of the landing obligation referred to in Article 15 of Regulation (EU) No 1380/2013 | |
| — | operations improving size selectivity or species selectivity of fishing gear; |

Row

Specific category of operation

Maximum aid intensity rate

1

The following operations contributing to the implementation of the landing obligation referred to in Article 15 of Regulation (EU) No 1380/2013

—

operations improving size selectivity or species selectivity of fishing gear;

100 %

| — | operations improving the infrastructure of fishing ports, auctions halls, landing sites and shelters in order to facilitate the landing and storage of unwanted catches; |
| --- | --- |

—

operations improving the infrastructure of fishing ports, auctions halls, landing sites and shelters in order to facilitate the landing and storage of unwanted catches;

75 %

| — | operations facilitating the marketing of unwanted catches landed from commercial stocks, in accordance with point (b) of Article 8(2) of Regulation (EU) No 1379/2013. |
| --- | --- |

—

operations facilitating the marketing of unwanted catches landed from commercial stocks, in accordance with point (b) of Article 8(2) of Regulation (EU) No 1379/2013.

75 %

2

Operations aimed at improving the health, safety and working conditions on board fishing vessels

75 %

3

Operations located in the outermost regions

85 %

4

Operations located in Greek islands which according to national law have been qualified as remote and in the Croatian islands of Dugi Otok, Vis, Mljet and Lastovo

85 %

5

Operations related to small-scale coastal fishing

100 %

6

Operations which fulfil all of the following criteria:

| (a) | they are of collective interest; |
| --- | --- |

(a)

they are of collective interest;

| (b) | they have a collective beneficiary; |
| --- | --- |

(b)

they have a collective beneficiary;

| (c) | they have innovative features or ensure public access to their results |
| --- | --- |

(c)

they have innovative features or ensure public access to their results

100 %

7

Operations implemented by producer organisations, associations of producer organisations or interbranch organisations

75 %

8

Operations supporting sustainable aquaculture

60 %

9

Operations supporting innovative products, processes or equipment in fisheries, aquaculture and processing based on Articles 14, 23, 26, 28, 30, 31 and 3

75 %

10

Operations implemented by organisations of fishers or other collective beneficiaries

60 %

11

Financial instruments

100 %

---

| 6.5.2022 | EN | Official Journal of the European Union | C 185/46 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/46

---

Non-opposition to a notified concentration

(Case M.10691 – CDP GROUP / FOMAS GROUP / PUNCH GROUP / JV)

(Text with EEA relevance)

(2022/C 185/02)

On 2 May 2022, the Commission decided not to oppose the above notified concentration and to declare it compatible with the internal market. This decision is based on Article 6(1)(b) of Council Regulation (EC) No 139/2004 (1). The full text of the decision is available only in Italian language and will be made public after it is cleared of any business secrets it may contain. It will be available:

| — | in the merger section of the ‘Competition policy’ website of the Commission (http://ec.europa.eu/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes, |
| --- | --- |

—

in the merger section of the ‘Competition policy’ website of the Commission (http://ec.europa.eu/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

| — | in electronic form on the EUR-Lex website (http://eur-lex.europa.eu/homepage.html?locale=en) under document number 32022M10691. EUR-Lex is the online point of access to European Union law. |
| --- | --- |

—

in electronic form on the EUR-Lex website (http://eur-lex.europa.eu/homepage.html?locale=en) under document number 32022M10691. EUR-Lex is the online point of access to European Union law.

---

(1)  OJ L 24, 29.1.2004, p. 1.

---

IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

| 6.5.2022 | EN | Official Journal of the European Union | C 185/47 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/47

---

Opinionof the Advisory Committee on restrictive agreements and dominant positionsat its meeting on 30 November 2021concerning a draft settlement decision relating toCase COMP/AT.40135 – FOREX (Sterling Lads) Rapporteur: Portugal

(Text with EEA relevance)

(2022/C 185/03)

1.

The Advisory Committee (13 Member States) agrees with the Commission that the anticompetitive behaviour covered by the draft settlement decision (i.e. information exchanges, standing down and the underlying understanding) constitutes agreements and/or concerted practices between undertakings within the meaning of Article 101 TFEU and Article 53 of the EEA Agreement.

2.

The Advisory Committee (13 Member States) agrees with the Commission that the undertakings concerned by the draft settlement decision participated in a single and continuous infringement of Article 101 TFEU and Article 53 of the EEA Agreement, as spelled out in the draft settlement decision.

3.

The Advisory Committee (13 Member States) agrees with the Commission that the object of the agreements and/or concerted practices was to restrict competition within the meaning of Article 101 TFEU and Article 53 of the EEA Agreement.

4.

The Advisory Committee (13 Member States) agrees with the Commission’s assessment as regards the duration of the infringement.

5.

The Advisory Committee (13 Member States) agrees with the Commission that a fine should be imposed on the addressees of the draft settlement decision with the exception of the immunity applicant.

6.

The Advisory Committee (13 Member States) agrees with the Commission on the calculation of the proxy to the value of sales to enable the application to the case of the 2006 Guidelines on the method of setting fines imposed pursuant to Article 23(2)(a) of Regulation No 1/2003.

7.

The Advisory Committee (13 Member States) agrees with the Commission on the determination of the basic amounts of the fines and the overlap corrections applied.

8.

The Advisory Committee (13 Member States) agrees with the Commission as regards the reduction of the fines based on the 2006 Leniency Notice and the 2008 Settlement Notice.

9.

The Advisory Committee (13 Member States) agrees with the Commission on the final amounts of the fines.

10.

The Advisory Committee (13 Member States) recommends the publication of its Opinion in the Official Journal of the European Union.

---

| 6.5.2022 | EN | Official Journal of the European Union | C 185/48 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/48

---

Final Report of the Hearing Officer (1)

AT.40135 - FOREX (Sterling Lads – settlement procedure)

(Text with EEA relevance)

(2022/C 185/04)

1.   INTRODUCTION

| 1. | The FOREX case (AT.40135) concerns conduct taking place in several separate [...] chatrooms relating to Foreign Exchange (‘FX’) spot trading of G10 currencies. On 16 May 2019, the Commission adopted two settlement decisions, FOREX (Three-way banana split) (2) and FOREX (Essex Express) concerning conduct in certain of these chatrooms (3). |
| --- | --- |

1.

| 2. | This report concerns the conduct in a particular chatroom, Sterling Lads (4), and specifically the draft settlement decision addressed to UBS (5), RBS (6), Barclays (7) and HSBC (8) (collectively ‘the Settling Parties’) that have agreed to settle pursuant to Article 10a of Regulation 773/2004 (9) (‘the draft settlement decision’). A separate draft prohibition decision concerning conduct in the Sterling Lads chatroom, which relates to an ordinary procedure, is addressed to [non-addressee] (the ‘Non-Settling Party’) (and together with the Settling Parties, the ‘Parties’) (10). |
| --- | --- |

2.

2.   PROCEDURE

| 3. | The investigation started after an application for a marker by UBS on 27 September 2013 under points 14 and 15 of the Notice on immunity from fines and reduction of fines in cartel cases (‘Leniency Notice’) (11). In October 2013, Barclays and RBS submitted applications for reduction of fines under the Leniency Notice. The Commission granted UBS conditional immunity on 2 July 2014. HSBC submitted an application for reduction of fines under the Leniency Notice in July 2015. Between July 2014 and April 2016 the Commission sent information requests to the Parties. |
| --- | --- |

3.

| 4. | On 27 October 2016, the Commission initiated proceedings pursuant to Article 11(6) of Regulation 1/2003 (12) and fixed a deadline for the Parties to manifest their interest in engaging in settlement discussions. All Parties initially expressed their interest in engaging in settlement discussions. Bilateral settlement meetings with the Parties took place between 9 November 2016 and 7 February 2018. |
| --- | --- |

4.

| 5. | Between [...] and [...], the Settling Parties submitted their formal requests to settle in accordance with Article 10a (2) of Regulation 773/2004. On 19 February 2018, the Non-Settling Party informed the Commission that it would not continue its participation in the settlement procedure. The proceedings therefore became ‘hybrid’ as the Commission reverted to the ordinary procedure for [non-addressee], in accordance with paragraph 19 of the Commission Notice on the conduct of settlement procedures (13), while continuing with the settlement procedure vis-à-vis the Settling Parties. |
| --- | --- |

5.

| 6. | On 24 July 2018, the Commission adopted a statement of objections (‘SO’) addressed to the Settling Parties. On the same day, the Commission also adopted a statement of objections addressed to the Non-Settling Party under the ordinary procedure. |
| --- | --- |

6.

| 7. | In their respective replies to the SO, the Settling Parties confirmed pursuant to Article 10a(3) of Regulation (EC) No 773/2004 that the SO reflected the contents of their settlement submissions and that they therefore remained committed to following the settlement procedure. |
| --- | --- |

7.

3.   REQUEST BY SETTLING PARTIES TO PARTICIPATE IN THE ORAL HEARING REQUESTED BY THE NON-SETTLING PARTY

| 8. | Some of the Settling Parties either inquired whether they would be invited to attend the oral hearing requested by the Non-Settling Party in its response to the 24 July 2018 statement of objections (‘Oral Hearing’), or requested to be invited. The Hearing Officer at the time rejected these requests, based on: (a) the provisions of the Settlement Notice, that provides that settlement parties confirm that they do not envisage requesting an oral hearing; and (b) the purpose of the oral hearing under Regulation 773/2004, that is to allow parties to express their views in the Commission’s proceedings and to help the Commission reach the correct decision at the end of its proceedings. |
| --- | --- |

8.

| 9. | The Hearing Officer also rejected a request by one of the Settling Parties to be granted access to a transcript of the Oral Hearing, since oral hearings are not public (Article 14(6) of Regulation 773/2004) and recordings of hearings shall be made available to the persons that attended the hearings (Article 14(8) Regulation 773/2004). |
| --- | --- |

9.

4.   CONCLUSION

| 10. | The draft settlement decision concerns a single and continuous infringement of Article 101 of the TFEU and Article 53 of the EEA Agreement in relation to FX spot trading of G10 currencies between 25 May 2011 and 12 July 2012 (14). According to the draft settlement decision, by exchanging sensitive business information and occasionally coordinating their trading activities pursuant to an underlying understanding, the Settling Parties engaged in agreements and/or concerted practices which taken together constitute a single and continuous infringement by object of Article 101 TFEU and Article 53 of the EEA Agreement in relation to FX spot trading of G10 currencies covering the entire EEA. |
| --- | --- |

10.

| 11. | Pursuant to Article 16 of Decision 2011/695/EU, I have examined whether the draft settlement decision deals only with objections in respect of which the Settling Parties have been afforded the opportunity of making known their views. I conclude that it does so. |
| --- | --- |

11.

| 12. | In view of the above, and taking into account that the Settling Parties have not addressed any complaints to the Hearing Officer, (15) I consider that the effective exercise of their procedural rights has been respected in this case. |
| --- | --- |

12.

Brussels, 2 December 2021.

Dorothe DALHEIMER

---

(1)  Pursuant to Articles 16 and 17 of Decision 2011/695/EU of the President of the European Commission of 13 October 2011 on the function and terms of reference of the hearing officer in certain competition proceedings (OJ L 275, 20.10.2011, p. 29) (‘Decision 2011/695/EU’).

1

(2)  OJ C 226, 9.7.2020, p. 5.

2

(3)  OJ C 219, 3.7.2020, p. 8.

3

(4)  Sterling Lads is the name of the [...] chatroom in which the conduct in question took place.

4

(5)  UBS AG.

5

(6)  The Royal Bank of Scotland Group plc (currently known as NatWest Group plc) and The Royal Bank of Scotland plc (currently known as NatWest Markets Plc).

6

(7)  Barclays PLC, Barclays Execution Services Limited, and Barclays Bank PLC.

7

(8)  HSBC Holdings plc and HSBC Bank plc.

8

(9)  Commission Regulation (EC) No 773/2004 of 7 April 2004 relating to the conduct of proceedings by the Commission pursuant to Articles 81 and 82 of the EC Treaty (OJ L 123, 27.4.2004, p. 18). (‘Regulation 773/2004’).

9

(10)  [non-addressee]. A separate Hearing Officer report pursuant to Articles 16 and 17 of Decision 2011/695/EU covers the ordinary proceedings.

10

(11)  OJ C 298, 8.12.2006, p. 17.

11

(12)  Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (OJ L 1, 4.1.2003, p. 1). (‘Regulation 1/2003’).

12

(13)  Commission Notice on the conduct of settlement procedures in view of the adoption of Decisions pursuant to Article 7 and Article 23 of Council Regulation (EC) No 1/2003 in cartel cases (OJ C 167, 2.7.2008, p. 1) (the ‘Settlement Notice’).

13

(14)  The duration of the infringement is shorter for RBS and HSBC.

14

(15)  Under Article 15(2) of Decision 2011/695/EU, parties to the proceedings in cartel cases which engage in settlement discussions pursuant to Article 10a of Regulation (EC) No 773/2004, may call upon the hearing officer at any stage during the settlement procedure in order to ensure the effective exercise of their procedural rights. See also paragraph 18 of Commission Notice 2008/C 167/01 on the conduct of settlement procedures in view of the adoption of Decisions pursuant to Article 7 and Article 23 of Council Regulation (EC) No 1/2003 in cartel cases (OJ C 167, 2.7.2008, p. 1).

15

---

| 6.5.2022 | EN | Official Journal of the European Union | C 185/50 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/50

---

SUMMARY OF COMMISSION DECISION

of 2 December 2021

relating to a proceeding under Article 101 of the Treaty on the functioning of the European Union and Article 53 of the EEA Agreement

(Case AT.40135 – FOREX – STERLING LADS)

(notified under document number C(2021) 8613 FINAL)

(Only the English text is authentic)

(Text with EEA relevance)

(2022/C 185/05)

On 2 December 2021, the Commission adopted a decision relating to a proceeding under Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the EEA Agreement. In accordance with the provisions of Article 30 of Council Regulation (EC) No 1/2003
   (1)

  , the Commission herewith publishes the names of the parties and the main content of the decision, including any penalties imposed, having regard to the legitimate interest of undertakings in the protection of their business secrets.

1.   INTRODUCTION

| (1) | The addressees of the Decision participated in a single and continuous infringement of Article 101 TFEU and Article 53 of the EEA Agreement. The object of the infringement was the restriction and/or distortion of competition in the sector of foreign exchange (‘Forex’ or ‘FX’) spot trading of G10 currencies (2). |
| --- | --- |

(1)

| (2) | The G10 currencies concerned by this Decision comprise the US, Canadian, Australian and New Zealand Dollars (respectively USD CAD, AUD and NZD ), the Japanese Yen (JPY), the Swiss Franc (CHF), the Sterling Pound (GBP), the Euro (EUR), and the Swedish, Norwegian and Danish Crowns (respectively SEK, NOK and DKK) (i.e. 11 currencies altogether, which correspond to the market convention for currencies covered by the G10 designation). |
| --- | --- |

(2)

| (3) | The FX spot trading activity of G10 currencies encompasses both (i) market making (i.e. the execution of customer’s orders to exchange a currency amount by its equivalent in another currency); and (ii) trading on own account (i.e. the execution of other currency exchanges in order to manage the exposure resulting from the market making transactions or to modify a currency exposure independently of any customer order). |
| --- | --- |

(3)

| (4) | The FX spot trading desks of G10 currencies of the relevant undertakings stood ready to trade any of those currencies depending on market demand. While the participating traders themselves were primarily responsible for market making in specific currencies or pairs, their mandate authorised them to further engage in trading activity on behalf of their own undertaking with respect to any G10 currency available in their books, which they also did to different extents during the relevant period, with a view to maximising the value of their respective holdings. |
| --- | --- |

(4)

| (5) | The following three types of orders characterising the customer-driven trading activity (market making) of the participating traders are pertinent in the infringement:






  (a) | Customer immediate orders, to immediately enter trades for a certain amount of currency based on the prevailing market rate; |
| --- | --- | --- |

(5)

(a)

Customer immediate orders, to immediately enter trades for a certain amount of currency based on the prevailing market rate;

| (b) | Customer conditional orders (for example stop-loss or take-profit orders), which are triggered when a given price level is reached and opens the traders’ risk exposure. They only become executable when the market reaches a certain level; |
| --- | --- |

(b)

Customer conditional orders (for example stop-loss or take-profit orders), which are triggered when a given price level is reached and opens the traders’ risk exposure. They only become executable when the market reaches a certain level;

| (c) | Customer orders to execute a trade at a specific Forex benchmark rate or ‘fixing’ for particular currency pairs, which in the current case only concerned the WM/Reuters Closing Spot Rates and the European Central Bank foreign exchange reference rates. |
| --- | --- |

(c)

Customer orders to execute a trade at a specific Forex benchmark rate or ‘fixing’ for particular currency pairs, which in the current case only concerned the WM/Reuters Closing Spot Rates and the European Central Bank foreign exchange reference rates.

2.   CASE DESCRIPTION

2.1   PROCEDURE

| (6) | The investigation was triggered by an immunity application from UBS on 27 September 2013. The Commission subsequently received initial leniency applications from Barclays on 11 October 2013, RBS on 14 October 2013 and HSBC on 17 July 2015. All the applications were followed by numerous submissions from each of the parties. [...] did not apply for leniency. The Commission granted conditional immunity to UBS on 2 July 2014. |
| --- | --- |

(6)

| (7) | Proceedings were initiated on 27 October 2016 against the parties with a view to engaging in settlement discussions. Between November 2016 and February 2018, the Commission held bilateral meetings and contacts with each of the parties, including [...], in three settlement rounds, pursuant to the Settlement Notice (3). |
| --- | --- |

(7)

| (8) | On 22 January 2018, the College approved the ranges of the likely applicable fines. On 19 February 2018, [...] informed the Commission that it would not continue its participation in the settlement procedure. The Commission therefore reverted to the ordinary procedure for [...] in accordance with paragraph 19 of the Settlement Notice. Between [...] and [...], the other parties submitted to the Commission their formal requests to settle pursuant to Article 10a(2) of Regulation (EC) No 773/2004 (4). |
| --- | --- |

(8)

| (9) | On 24 July 2018, the Commission adopted in parallel settlement Statement of Objections (‘SO’) addressed to the four settling parties and a streamlined ordinary SO addressed to [...]. All the addressees replied to the SO by confirming that it corresponded to the contents of their settlement submissions and that they therefore remained committed to following the settlement procedure. |
| --- | --- |

(9)

| (10) | The Advisory Committee on Restrictive Practices and Dominant Positions issued a favourable opinion on 30 November 2021. On 1 December 2021, the Hearing Officer issued her final report. The Commission adopted the Decision on 2 December 2021. |
| --- | --- |

(10)

2.2   SUMMARY OF THE INFRINGEMENT

| (11) | The Decision concerns the conduct that took place in a [...] chatroom called Sterling Lads (or ‘STG Lads’), between UBS, Barclays, RBS, HSBC (the ‘four settling parties’) and [...]. The behaviour took place from 25 May 2011 to 12 July 2012. [...] participated in the infringement from [...] to [...]. The cartel affected at least the EEA. |
| --- | --- |

(11)

| (12) | The cartel is documented in communications that took place within the STG Lads chatroom between certain individual traders authorised to trade G10 currencies in FX spot transactions in the name and on behalf of their respective employing undertakings at the corresponding dedicated FX spot trading desk of G10 currencies. |
| --- | --- |

(12)

| (13) | The cartel comprised a single and continuous infringement characterised by the exchange among the traders – in a private and multilateral chatroom and on an extensive and recurrent basis – of certain current or forward looking commercially sensitive information about their trading activities. The exchanges of information were meant to affect two basic parameters of competition in FX spot trading activity of G10 currencies: price and expert risk management. |
| --- | --- |

(13)

| (14) | Instead of competing autonomously on those parameters, the participating traders’ market decisions were informed by their competitors’ positions, intentions and constraints. The exchanges of information subject to this Decision concerned:






  (a) | Exchanges revealing details of outstanding customers’ orders, whereby the participating traders would freely discuss confidential details of their pending customers’ orders (such as the triggering level of customers’ conditional orders, the size of customers’ orders for the fix and the type or name of customers of immediate orders). This information increased the level of transparency for the chatroom’s members about their trading activities, assisted the participating traders in their subsequent market decisions and enabled them to identify occasions to coordinate their trading. |
| --- | --- | --- |

(14)

(a)

Exchanges revealing details of outstanding customers’ orders, whereby the participating traders would freely discuss confidential details of their pending customers’ orders (such as the triggering level of customers’ conditional orders, the size of customers’ orders for the fix and the type or name of customers of immediate orders). This information increased the level of transparency for the chatroom’s members about their trading activities, assisted the participating traders in their subsequent market decisions and enabled them to identify occasions to coordinate their trading.

| (b) | Exchanges revealing the traders’ open risk positions, which could provide them with an insight into one another’s potential hedging conduct. They provided the traders with information which could be relevant to their subsequent trading decisions for a window of minutes or until the next information exchange superseded it. In addition, they would enable the participating traders to identify occasions to coordinate their behaviour, in particular by standing down. |
| --- | --- |

(b)

Exchanges revealing the traders’ open risk positions, which could provide them with an insight into one another’s potential hedging conduct. They provided the traders with information which could be relevant to their subsequent trading decisions for a window of minutes or until the next information exchange superseded it. In addition, they would enable the participating traders to identify occasions to coordinate their behaviour, in particular by standing down.

| (c) | Exchanges revealing their existing or intended bid-ask spreads, which disclosed the spread quoted by the traders for specific currency pairs and trade sizes. They enabled the participating traders to obtain greater certainty on the prices they were quoting and informed their subsequent pricing behaviour. They could also enable alignment of the spreads for particular transactions and affect the overall price paid by customers for trading currencies. |
| --- | --- |

(c)

Exchanges revealing their existing or intended bid-ask spreads, which disclosed the spread quoted by the traders for specific currency pairs and trade sizes. They enabled the participating traders to obtain greater certainty on the prices they were quoting and informed their subsequent pricing behaviour. They could also enable alignment of the spreads for particular transactions and affect the overall price paid by customers for trading currencies.

| (d) | Exchanges revealing other details of current or planned trading activities whereby the participating traders shared a combination of several of the previously mentioned commercially sensitive information, assisted the participating traders in their subsequent decisions and enabled them to identify occasions to coordinate their trading. |
| --- | --- |

(d)

Exchanges revealing other details of current or planned trading activities whereby the participating traders shared a combination of several of the previously mentioned commercially sensitive information, assisted the participating traders in their subsequent decisions and enabled them to identify occasions to coordinate their trading.

| (15) | In addition, the four settling parties acknowledged that these extensive and recurrent exchanges of sensitive current or forward looking information took place pursuant to a set of tacit rules that: (i) such information could be used to the traders’ respective benefit and in order to identify occasions to coordinate their trading; (ii) such information would be shared within the private chatroom; (iii) the traders would not disclose such shared information received from other chatroom participants to parties outside of the private chatroom; and (iv) such shared information would not be used against the traders who shared it (hereinafter together referred to as the ‘underlying understanding’). |
| --- | --- |

(15)

| (16) | According to the four settling parties, pursuant to the underlying understanding and seeking to gain an advantage over competitors who were not participants in the chatroom, the participating traders occasionally coordinated their trading activities with respect to FX spot trading of G10 currencies by refraining from trading as they otherwise had planned to undertake during a particular time window on account of another trader’s announced position or trading activity. This practice is known as ‘standing down’. |
| --- | --- |

(16)

2.3   ADDRESSEES

| (17) | The Decision is addressed to the following legal entities (together ‘the addressees’):






  — | UBS AG (‘UBS’), |
| --- | --- | --- |

(17)

—

UBS AG (‘UBS’),

| — | NatWest Group plc and NatWest Markets Plc (collectively ‘RBS’), |
| --- | --- |

—

NatWest Group plc and NatWest Markets Plc (collectively ‘RBS’),

| — | Barclays PLC, Barclays Execution Services Limited and Barclays Bank PLC (collectively ‘Barclays’), and |
| --- | --- |

—

Barclays PLC, Barclays Execution Services Limited and Barclays Bank PLC (collectively ‘Barclays’), and

| — | HSBC Holdings plc (‘HSBC’). |
| --- | --- |

—

HSBC Holdings plc (‘HSBC’).

| (18) | UBS, Barclays, RBS, HSBC and the other participant undertaking, [...], engaged in the aforementioned conduct in the periods indicated in the following table:
  Table 1 : involvement of the Parties in the chatroom








  BANK | ENTRY | EXIT |
| --- | --- | --- | --- |
| UBS | 25.5.2011 | 4.11.2011 |
| | 8.11.2011 | 12.7.2012 |
| | 30.5.2011 | 12.7.2012 |
| BARCLAYS | 25.5.2011 | 12.7.2012 |
| 25.5.2011 | 4.11.2011 |
| | 8.11.2011 | 12.7.2012 |
| RBS | 5.8.2011 | 12.7.2012 |
| HSBC | 25.5.2011 | 12.7.2012 |
| [...] | [...] | [...] |

(18)

Table 1 : involvement of the Parties in the chatroom

BANK

ENTRY

EXIT

UBS

25.5.2011

4.11.2011

8.11.2011

12.7.2012

30.5.2011

12.7.2012

BARCLAYS

25.5.2011

12.7.2012

25.5.2011

4.11.2011

8.11.2011

12.7.2012

RBS

5.8.2011

12.7.2012

HSBC

25.5.2011

12.7.2012

[...]

[...]

[...]

2.4   REMEDIES

| (19) | The Decision applied the 2006 Commission Guidelines on Fines. The fining methodology and parameters were decided by the College of Commissioners on 22 January 2018 in the context of the settlement procedure. According to the case law, the principle of equal treatment applies to fine parameters for all parties to the same infringement irrespective of whether they follow the settlement or the ordinary procedure. Therefore, the same method for fines calculation was applied to calculate the addressees’ fines and [...]’s fine. |
| --- | --- |

(19)

2.4.1   Basic amount of the fine

| (20) | As for other financial cases, G10 FX spot transactions do not generate sales in the usual sense of the term. The Commission therefore considers it appropriate to apply a specific proxy for the value of sales as a starting point for its determination of the fines. In view of the differences in the duration of the involvement of different parties and of the varying market size of the G10 FX spot business over the infringement period, the Commission considers it appropriate to base the proxy for value of sales directly on the value of sales actually made by the undertakings during the months corresponding to their respective participation in the infringement, which is subsequently annualised. |
| --- | --- |

(20)

| (21) | The Commission determines the proxy for the relevant values of sales as follows:






  (a) | Firstly, the Commission takes as reference amount the annualised notional amounts traded by the concerned addressee in the FX spot transactions of G10 currencies entered into with a counterparty located in the EEA. To this end, the Commission considers it more appropriate to base the proxy for the value of sales directly on the revenues made by the addressees during the months corresponding to their respective participation in the infringement, which are subsequently annualised. |
| --- | --- | --- |

(21)

(a)

Firstly, the Commission takes as reference amount the annualised notional amounts traded by the concerned addressee in the FX spot transactions of G10 currencies entered into with a counterparty located in the EEA. To this end, the Commission considers it more appropriate to base the proxy for the value of sales directly on the revenues made by the addressees during the months corresponding to their respective participation in the infringement, which are subsequently annualised.

| (b) | Secondly, those amounts are multiplied by an appropriate factor, uniform for all the Addressees, reflecting the applicable bid-ask spreads in the relevant FX spot transactions of G10 currencies. |
| --- | --- |

(b)

Secondly, those amounts are multiplied by an appropriate factor, uniform for all the Addressees, reflecting the applicable bid-ask spreads in the relevant FX spot transactions of G10 currencies.

| (22) | The proxy for value of sales was based directly on the value of sales actually made by the undertakings during the months corresponding to their respective participation in the infringement, which was subsequently annualised. Given that the infringement covered the entire EEA, the proxy for the value of sales was determined on FX spot transactions of G10 currencies entered into with counterparties located in the EEA. |
| --- | --- |

(22)

2.4.2   Adjustments to the basic amount

| (23) | The Commission applied to the notional amounts an appropriate, uniform factor based on the bid-ask spread levels observed in the evidence. |
| --- | --- |

(23)

2.4.3   Aggravating or mitigating circumstances

| (24) | No aggravating or mitigating circumstances were applied in this case. |
| --- | --- |

(24)

2.4.4   Specific increase for deterrence

| (25) | In order to ensure that fines have a sufficiently deterrent effect, the Commission may increase fines to be imposed on undertakings which have a particular large turnover beyond the sales of goods or services to which the infringement relates (5). |
| --- | --- |

(25)

| (26) | In this case, it is appropriate to apply a deterrence multiplier factor to the fines to be imposed on HSBC. |
| --- | --- |

(26)

2.4.5   Application of the 10 % turnover limit

| (27) | The amount of the fine was below the 10 % worldwide turnover maximum set out in Article 23(2) of Regulation (EC) No 1/2003. |
| --- | --- |

(27)

2.4.6   Application of the 2006 Leniency Notice: reduction of fines

| (28) | UBS was granted immunity from fines and Barclays benefitted from periods of partial immunity. In addition, Barclays, RBS and HSBC were granted a reduction of fines within the bands already attributed to them. |
| --- | --- |

(28)

2.4.7   Application of the Settlement Notice

| (29) | All the settling parties received a 10 % settlement reduction. |
| --- | --- |

(29)

2.5   CONCLUSION

| (30) | The following fines were imposed pursuant to Article 23(2) of Regulation (EC) No 1/2003. |
| --- | --- |

(30)

| (31) | Table 2: Fines amounts for the infringement |
| --- | --- |

(31)

| (32) | Undertaking | Fines (in EUR) |
| --- | --- | --- |
| UBS | 0 |
| Barclays | 54 348 000 |
| RBS | 32 472 000 |
| HSBC | 174 281 000 |

(32)

Undertaking

Fines (in EUR)

UBS

0

Barclays

54 348 000

RBS

32 472 000

HSBC

174 281 000

---

(1)  OJ L 1, 4.1.2003, p. 1. Regulation as amended by Regulation (EC) No 411/2004 (OJ L 68, 6.3.2004, p. 1).

(2)  The case does not concern FX spot e-commerce trading activity within the meaning of FX spot trades that are automatically booked by, or executed by either the relevant bank’s proprietary electronic trading platforms or computer algorithms.

(3)  Commission Notice on the conduct of settlement procedures in view of the adoption of decisions pursuant to Article 7 and Article 23 of Council Regulation (EC) No 1/2003 in cartel cases, OJ C 167, 2.7.2008, p. 1 (the ‘Settlement Notice’).

(4)  OJ L 123, 27.4.2004, p. 18.

(5)  Point 30 of the 2006 Guidelines on fines.

---

| 6.5.2022 | EN | Official Journal of the European Union | C 185/55 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/55

---

Opinion of the Advisory Committee on restrictive agreements and dominant positions at its meeting on 30 November 2021 concerning a draft ordinary decision relating to Case AT.40135 – FOREX (Sterling Lads)

Rapporteur: Portugal

(2022/C 185/06)

1.

The Advisory Committee (13 Member States) agrees with the Commission that the anticompetitive behaviour covered by the draft ordinary decision (i.e. information exchanges) constitutes agreements and/or concerted practices between undertakings within the meaning of Article 101 TFEU and Article 53 of the EEA Agreement.

2.

The Advisory Committee (13 Member States) agrees with the Commission that the undertaking concerned by the draft ordinary decision participated in a single and continuous infringement of Article 101 TFEU and Article 53 of the EEA Agreement, as spelled out in the draft ordinary decision.

3.

The Advisory Committee (13 Member States) agrees with the Commission that the object of the agreements and/or concerted practices was to restrict competition within the meaning of Article 101 TFEU and Article 53 of the EEA Agreement.

4.

The Advisory Committee (13 Member States) agrees with the Commission’s assessment as regards the duration of the infringement.

5.

The Advisory Committee (13 Member States) agrees with the Commission that a fine should be imposed on the addressee of the draft ordinary decision.

6.

The Advisory Committee (13 Member States) agrees with the Commission on the calculation of the proxy to the value of sales to enable the application to the case of the 2006 Guidelines on the method of setting fines imposed pursuant to Article 23(2)(a) of Regulation No 1/2003.

7.

The Advisory Committee (13 Member States) agrees with the Commission on the final amount of the fine.

8.

The Advisory Committee (13 Member States) recommends the publication of its Opinion in the Official Journal of the European Union.

---

| 6.5.2022 | EN | Official Journal of the European Union | C 185/56 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/56

---

Final Report of the Hearing Officer (1)

AT.40135 – FOREX (Sterling Lads – ordinary procedure)

(2022/C 185/07)

I.   INTRODUCTION

| 1. | The FOREX case (AT.40135) concerns conduct taking place in several separate [...] chatrooms relating to Foreign Exchange (‘FX’) spot trading of G10 currencies. On 16 May 2019, the Commission adopted two settlement decisions, FOREX (Three-way banana split) (2) and FOREX (Essex Express) (3) concerning conduct in certain of these chatrooms. |
| --- | --- |

1.

| 2. | This report concerns conduct in a particular chatroom, Sterling Lads (4), and specifically the draft prohibition decision under an ordinary procedure, addressed to Credit Suisse Group AG, Credit Suisse Securities (Europe) Limited and Credit Suisse AG (together ‘Credit Suisse’). Four other undertakings (5) are involved in parallel settlement proceedings (together the ‘Settling Parties’) and are addressees of a separate draft settlement decision (6). |
| --- | --- |

2.

II.   PROCEDURE

| 3. | The investigation started after an application for a marker by [non-addressee] on 27 September 2013 under points 14 and 15 of the Notice on immunity from fines and reduction of fines in cartel cases (‘Leniency Notice’) (7). In October 2013, [non-addressee] and [non-addressee] submitted applications for reduction of fines under the Leniency Notice. The Commission granted [non-addressee] conditional immunity on 2 July 2014. [non-addressee] submitted an application for reduction of fines under the Leniency Notice in July 2015. Between July 2014 and April 2016 the Commission sent information requests to Credit Suisse and the Settling Parties (together ‘the Parties’). |
| --- | --- |

3.

| 4. | On 27 October 2016, the Commission initiated proceedings pursuant to Article 11(6) of Regulation 1/2003 (8) against the Parties and fixed a deadline for them to manifest their interest in engaging in settlement discussions. All Parties expressed their interest in engaging in settlement discussions. Bilateral settlement meetings with the Parties took place between 9 November 2016 and 7 February 2018. |
| --- | --- |

4.

| 5. | On 19 February 2018, Credit Suisse informed the Commission that it would not continue its participation in the settlement procedure. The proceedings therefore became ‘hybrid’ as the Commission reverted to the ordinary procedure for Credit Suisse, in accordance with paragraph 19 of the Commission Notice on the conduct of settlement procedures, (9) while continuing with the settlement procedure vis-à-vis the Settling Parties. |
| --- | --- |

5.

III.   STATEMENT OF OBJECTIONS AND FIRST ORAL HEARING

| 6. | On 24 July 2018, the Commission issued a Statement of Objections (‘SO’) against Credit Suisse. In the SO, the Commission came to the preliminary view that Credit Suisse participated, together with the Settling Parties in a conduct infringing Article 101 TFEU and Article 53 of the EEA Agreement by exchanging commercially sensitive information within a private, multilateral chatroom with the name ‘Sterling Lads’. According to the SO, the participants in the Sterling Lads chatroom engaged in extensive and recurrent exchanges of certain current or forward looking information about their trading activities relating to different aspects of FX spot trading of G10 currencies, pursuant to an underlying understanding. According to the SO, the exchanges of information would also occasionally enable the traders to coordinate their activities through ‘standing down’. |
| --- | --- |

6.

| 7. | In the SO, the Commission came to the preliminary conclusion that the conduct in which Credit Suisse engaged constituted agreements and/or concerted practices that had the object of distorting and/or restricting competition within the meaning of Article 101 TFEU and Article 53 of the EEA Agreement. Furthermore, the Commission preliminarily considered that Credit Suisse’s conduct gave rise to a single and continuous infringement between 7 February 2012 and 12 July 2012. |
| --- | --- |

7.

| 8. | Credit Suisse was granted access to the file on 25 July 2018. The Hearing Officer did not receive any complaint or further request in relation to this access. |
| --- | --- |

8.

| 9. | DG Competition initially granted Credit Suisse eight weeks for replying to the SO. Following an extension request by Credit Suisse, DG Competition extended the time limit by two weeks. |
| --- | --- |

9.

| 10. | On 15 and 29 August 2018, Credit Suisse requested a further extension of two to three weeks to DG Competition, based on alleged difficulties and delays with access to the file. DG Competition rejected the request on 30 August 2018. On 4 September 2018, Credit Suisse referred the matter to the Hearing Officer pursuant to Article 9 of Decision 2011/695/EU. After examination of Credit Suisse’s arguments and in light of all the circumstances, in particular the initial time limit set by DG Competition and the size and complexity of the file, the Hearing Officer dismissed Credit Suisse’s request by decision of 12 September 2018. |
| --- | --- |

10.

| 11. | Credit Suisse submitted its response to the SO on 4 October 2018 within the time limit. In its response, Credit Suisse requested to be heard orally. The oral hearing (‘first oral hearing’) was held on 7 December 2018. The first oral hearing proceeded smoothly and there were no procedural complaints. |
| --- | --- |

11.

IV.   REQUEST BY SETTLING PARTIES TO PARTICIPATE IN THE FIRST ORAL HEARING

| 12. | Some of the Settling Parties either inquired whether they would be invited to attend the first oral hearing or requested to be invited. The Hearing Officer at the time rejected these requests, based on: (a) the provisions of the Settlement Notice, that provides that settlement parties confirm that they do not envisage requesting to be heard again in an oral hearing; and (b) the purpose of the oral hearing under Regulation 773/2004, that is to allow parties to express their views in the Commission’s proceedings and to help the Commission reach the correct decision at the end of its proceedings. |
| --- | --- |

12.

| 13. | The Hearing Officer also rejected a request by one of the Settling Parties to be granted access to a transcript of the first oral hearing, since oral hearings are not public (Article 14(6) of Regulation 773/2004) and recordings of hearings shall be made available to the persons that attended the hearings (Article 14(8) Regulation 773/2004). |
| --- | --- |

13.

V.   REQUEST FOR FURTHER ACCESS TO THE FILE BY CREDIT SUISSE

| 14. | On 3 November 2020, Credit Suisse addressed a letter (the ‘3 November 2020 Letter’) to DG Competition requesting access to certain information on the Commission’s file, including settlement communications between the Settling Parties and the Commission in this case and to an index of documents added to the Commission’s file since Credit Suisse was last granted access to it (the ‘index’) (10). |
| --- | --- |

14.

| 15. | On 1 December 2020, DG Competition responded to the 3 November 2020 Letter, agreeing to provide access to the documents requested by Credit Suisse, to the extent that these related (or were not unrelated) to the Sterling Lads chatroom. DG Competition did not accede to the request for the index and, following further correspondence from Credit Suisse, finally rejected this request on 9 December 2020. |
| --- | --- |

15.

| 16. | On 23 January 2021, Credit Suisse addressed a letter to the Hearing Officer requesting access to certain documents in the Commission’s investigation file and to the index (‘the Request’). On 26 January 2021, DG Competition informed Credit Suisse that it was preparing a Supplementary Statement of Objections (‘SSO’) in the proceedings and that additional access to file and the index would be provided together with the SSO. In light of this correspondence from DG Competition, the Hearing Officer at the time informed Credit Suisse that, pursuant to Article 3(7) of Decision 2011/695/EU, he considered the Request to be premature and that he would not further deal with it. |
| --- | --- |

16.

VI.   SUPPLEMENTARY STATEMENT OF OBJECTIONS AND SECOND ORAL HEARING

| 17. | On 18 March 2021, the Commission adopted the SSO, which was notified to Credit Suisse on 19 March 2021. In the SSO, the Commission elaborated and expanded on certain elements in the SO, specifically on the economic and market context and the analysis of the evidence. Furthermore, the SSO clarified the Commission’s preliminary view that the arrangements within the Sterling Lads chatroom comprising of (i) the extensive and recurrent exchanges of information, (ii) the occasional instances of coordination and (iii) the underlying understanding, constituted separate agreements and/or concerted practices each of which are restrictive of competition by object but that, taken together, also constituted a single and continuous infringement by object of Article 101 TFEU and Article 53 of the EEA Agreement. The SSO also provided further details on the methodology for the calculation of the proxy for the value of sales that the Commission intended to use in the event that a fine were to be imposed. |
| --- | --- |

17.

| 18. | Access to part of the file was granted via DVD on 23 March 2021 and additional access to settlement-related materials, that included settlement communications between the Commission and the Settling Parties related (or not unrelated) to Sterling Lads, was provided at the Commission’s premises between 24 and 26 March 2021. |
| --- | --- |

18.

| 19. | The Hearing Officer received no further requests regarding access to file. |
| --- | --- |

19.

| 20. | The initial deadline set by DG Competition for Credit Suisse to submit a response to the SSO (‘SSO response’) was 22 April 2021. On 1 April 2021, Credit Suisse wrote to DG Competition requesting an extension of this deadline by four weeks. DG Competition rejected this request on 7 April 2021. |
| --- | --- |

20.

| 21. | On 8 April 2021, Credit Suisse addressed the Hearing Officer, requesting a four-week extension to the SSO response deadline. On 12 April 2021, the Hearing Officer, after considering the arguments made by Credit Suisse and by DG Competition, granted Credit Suisse an extension of two weeks to submit the SSO response, i.e. until 6 May 2021. Credit Suisse submitted the SSO response on that date. |
| --- | --- |

21.

| 22. | In the SSO response, Credit Suisse requested to be heard orally. The oral hearing (‘second oral hearing’) was held on 8 June 2021 (11). The second oral hearing proceeded smoothly and there were no procedural complaints. |
| --- | --- |

22.

VII.   CONCLUSION

| 23. | The draft decision finds Credit Suisse liable for infringing Article 101 TFEU and Article 53 of the EEA Agreement by participating from 7 February 2012 until 12 July 2012, in extensive and recurrent exchanges of current or forward looking commercially sensitive information which constitute agreements and/or concerted practices (within a wider single and continuous infringement) having the object of restricting and/or distorting competition regarding FX spot trading of G10 currencies covering the entire EEA. Compared to the SO and SSO, the draft decision does not hold Credit Suisse liable for the occasional instances of coordination or for the underlying understanding. |
| --- | --- |

23.

| 24. | Pursuant to Article 16 of Decision 2011/695/EU, I have examined whether the draft decision deals only with objections in respect of which Credit Suisse has been afforded the opportunity of making known its views, and I have come to a positive conclusion. |
| --- | --- |

24.

| 25. | In view of the above, I consider that Credit Suisse has been able to effectively exercise its procedural rights in this case. |
| --- | --- |

25.

Brussels, 1 December 2021.

Dorothe DALHEIMER

---

(1)  Pursuant to Article 16 and 17 of Decision 2011/695/EU of the President of the European Commission of 13 October 2011 on the function and terms of reference of the hearing officer in certain competition proceedings (OJ L 275, 20.10.2011, p. 29) (‘Decision 2011/695/EU’).

1

(2)  OJ C 226, 9.7.2020, p. 5.

2

(3)  OJ C 219, 3.7.2020, p. 8.

3

(4)  Sterling Lads is the name of the [...] chatroom in which the conduct in question took place.

4

(5)  [non-addressee]; [non-addressee], [non-addressee] and [non-addressee].

5

(6)  A separate Hearing Officer report pursuant to Articles 16 and 17 of Decision 2011/695/EU covers the settlement proceedings.

6

(7)  OJ C 298, 8.12.2006, p. 17.

7

(8)  Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (OJ L 1, 4.1.2003, p. 1) (‘Regulation 1/2003’).

8

(9)  Commission Notice on the conduct of settlement procedures in view of the adoption of Decisions pursuant to Article 7 and Article 23 of Council Regulation (EC) No 1/2003 in cartel cases (OJ C 167, 2.7.2008, p. 1) (the ‘Settlement Notice’).

9

(10)  Credit Suisse based its request on the Order of 10 September 2019, Lantmännen v Commission, C-318/19 P(R), EU:C:2019:698 which (at an interim proceeding stage) upheld the Hearing Officer’s decision to disclose access to all settlement communications between a settling party and the Commission, preceeding the statement of objections.

10

Lantmännen

Commission

(11)  Due to the ongoing coronavirus pandemic, the second oral hearing was held remotely by encrypted videoconference as well as via a password protected (web streamed) virtual listening room for persons who did not need to speak at the oral hearing.

11

---

| 6.5.2022 | EN | Official Journal of the European Union | C 185/60 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/60

---

Summary of Commission Decision

of 2 December 2021

relating to a proceeding under Article 101 of the Treaty on the functioning of the European Union and Article 53 of the EEA Agreement

(CASE AT.40135 – FOREX – STERLING LADS)

(notified under document number C(2021) 8612 final)

(Only the English text is authentic)

(2022/C 185/08)

On 2 December 2021, the Commission adopted a decision relating to a proceeding under Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the EEA Agreement. In accordance with the provisions of Article 30 of Council Regulation (EC) No 1/2003 (1)
  , the Commission herewith publishes the names of the parties and the main content of the decision, including any penalties imposed, having regard to the legitimate interest of undertakings in the protection of their business secrets.

1.   INTRODUCTION

| (1) | The addressees of the Decision participated in a single and continuous infringement of Article 101 TFEU and Article 53 of the EEA Agreement. The object of the infringement was the restriction and/or distortion of competition in the sector of foreign exchange (‘Forex’ or ‘FX’) spot trading of G10 currencies (2). |
| --- | --- |

(1)

| (2) | The G10 currencies concerned by this Decision comprise the US, Canadian, Australian and New Zealand Dollars (respectively USD CAD, AUD and NZD ), the Japanese Yen (JPY), the Swiss Franc (CHF), the Sterling Pound (GBP), the Euro (EUR), and the Swedish, Norwegian and Danish Crowns (respectively SEK, NOK and DKK) (i.e. 11 currencies altogether, which correspond to the market convention for currencies covered by the G10 designation). |
| --- | --- |

(2)

| (3) | The FX spot trading activity of G10 currencies encompasses both (i) market making (i.e. the execution of customer’s orders to exchange a currency amount by its equivalent in another currency); and (ii) trading on own account (i.e. the execution of other currency exchanges in order to manage the exposure resulting from the market making transactions or to modify a currency exposure independently of any customer order). |
| --- | --- |

(3)

| (4) | The FX spot trading desks of G10 currencies of the relevant undertakings stood ready to trade any of those currencies depending on market demand. While the participating traders themselves were primarily responsible for market making in specific currencies or pairs, their mandate authorised them to further engage in trading activity on behalf of their own undertaking with respect to any G10 currency available in their books, which they also did to different extents during the relevant period, with a view to maximising the value of their respective holdings. |
| --- | --- |

(4)

| (5) | The following three types of orders characterising the customer-driven trading activity (market making) of the participating traders are pertinent in the infringement:






  (a) | Customer immediate orders, to immediately enter trades for a certain amount of currency based on the prevailing market rate; |
| --- | --- | --- |

(5)

(a)

Customer immediate orders, to immediately enter trades for a certain amount of currency based on the prevailing market rate;

| (b) | Customer conditional orders (for example stop-loss or take-profit orders), which are triggered when a given price level is reached and opens the traders’ risk exposure. They only become executable when the market reaches a certain level; |
| --- | --- |

(b)

Customer conditional orders (for example stop-loss or take-profit orders), which are triggered when a given price level is reached and opens the traders’ risk exposure. They only become executable when the market reaches a certain level;

| (c) | Customer orders to execute a trade at a specific Forex benchmark rate or ‘fixing’ for particular currency pairs, which in the current case only concerned the WM/Reuters Closing Spot Rates and the European Central Bank foreign exchange reference rates. |
| --- | --- |

(c)

Customer orders to execute a trade at a specific Forex benchmark rate or ‘fixing’ for particular currency pairs, which in the current case only concerned the WM/Reuters Closing Spot Rates and the European Central Bank foreign exchange reference rates.

2.   CASE DESCRIPTION

2.1.   Procedure

| (6) | The investigation was triggered by an immunity application from [non-addressee] on 27 September 2013. The Commission subsequently received initial leniency applications from [non-addressee] on 11 October 2013, [non-addressee] on 14 October 2013 and [non-addressee] on 17 July 2015. All the applications were followed by numerous submissions from each of the parties. Credit Suisse did not apply for leniency. The Commission granted conditional immunity to [non-addressee] on 2 July 2014. |
| --- | --- |

(6)

| (7) | Proceedings were initiated on 27 October 2016 against the parties with a view to engaging in settlement discussions. Between November 2016 and February 2018, the Commission held bilateral meetings and contacts with each of the parties, including Credit Suisse, in three settlement rounds, pursuant to the Settlement Notice (3). |
| --- | --- |

(7)

| (8) | On 22 January 2018, the College approved the ranges of the likely applicable fines. On 19 February 2018, Credit Suisse informed the Commission that it would not continue its participation in the settlement procedure. The Commission therefore reverted to the ordinary procedure for Credit Suisse in accordance with paragraph 19 of the Settlement Notice. Between [...] and [...], the other parties submitted to the Commission their formal requests to settle pursuant to Article 10a(2) of Regulation (EC) No 773/2004 (4). |
| --- | --- |

(8)

| (9) | On 24 July 2018, the Commission adopted in parallel the ordinary Statement of Objections (‘SO’) addressed to Credit Suisse and a streamlined settlement Statement of Objections addressed to the other four parties to the infringement. Credit Suisse submitted its written observations to the SO on 4 October 2018 and requested to be heard orally. The oral hearing took place on 7 December 2018. |
| --- | --- |

(9)

| (10) | On 18 March 2021, the Commission adopted a Supplementary Statement of Objections (‘SSO’) addressed to Credit Suisse. Credit Suisse submitted its written observations to the SSO on 6 May 2021 and a second oral hearing took place on 8 June 2021. Credit Suisse replied to outstanding questions from the oral hearing on 25 June 2021. |
| --- | --- |

(10)

| (11) | The Advisory Committee on Restrictive Practices and Dominant Positions issued a favourable opinion on 30 November 2021. On 1 December 2021, the Hearing Officer issued her final report. The Commission adopted the Decision on 2 December 2021. |
| --- | --- |

(11)

2.2.   Summary Of The Infringement

| (12) | The Decision concerns the conduct that took place in a [...] chatroom called Sterling Lads (or ‘STG Lads’), between [non-addressee], [non-addressee], [non-addressee], [non-addressee] (the ‘four settling parties’) and Credit Suisse. The behaviour took place from 25 May 2011 to 12 July 2012. Credit Suisse participated in the infringement from 7 February 2012 to 12 July 2012. The cartel affected at least the EEA. |
| --- | --- |

(12)

| (13) | The cartel is documented in communications that took place within the STG Lads chatroom between certain individual traders authorised to trade G10 currencies in FX spot transactions in the name and on behalf of their respective employing undertakings at the corresponding dedicated FX spot trading desk of G10 currencies. |
| --- | --- |

(13)

| (14) | The cartel comprised a single and continuous infringement characterised by the exchange among the traders - in a private and multilateral chatroom and on an extensive and recurrent basis – of certain current or forward looking commercially sensitive information about their trading activities. The exchanges of information were meant to affect two basic parameters of competition in FX spot trading activity of G10 currencies: price and expert risk management. |
| --- | --- |

(14)

| (15) | Instead of competing autonomously on those parameters, the participating traders’ market decisions were informed by their competitors’ positions, intentions and constraints. The exchanges of information subject to this Decision concerned:






  (a) | Exchanges revealing details of outstanding customers’ orders, whereby the participating traders would freely discuss confidential details of their pending customers’ orders (such as the triggering level of customers’ conditional orders, the size of customers’ orders for the fix and the type or name of customers of immediate orders). This information increased the level of transparency for the chatroom’s members about their trading activities, assisted the participating traders in their subsequent market decisions and enabled them to identify occasions to coordinate their trading. |
| --- | --- | --- |

(15)

(a)

Exchanges revealing details of outstanding customers’ orders, whereby the participating traders would freely discuss confidential details of their pending customers’ orders (such as the triggering level of customers’ conditional orders, the size of customers’ orders for the fix and the type or name of customers of immediate orders). This information increased the level of transparency for the chatroom’s members about their trading activities, assisted the participating traders in their subsequent market decisions and enabled them to identify occasions to coordinate their trading.

| (b) | Exchanges revealing the traders’ open risk positions, which could provide them with an insight into one another’s potential hedging conduct. They provided the traders with information which could be relevant to their subsequent trading decisions for a window of minutes or until the next information exchange superseded it. |
| --- | --- |

(b)

Exchanges revealing the traders’ open risk positions, which could provide them with an insight into one another’s potential hedging conduct. They provided the traders with information which could be relevant to their subsequent trading decisions for a window of minutes or until the next information exchange superseded it.

| (c) | Exchanges revealing their existing or intended bid-ask spreads, which disclosed the spread quoted by the traders for specific currency pairs and trade sizes. They enabled the participating traders to obtain greater certainty on the prices they were quoting and informed their subsequent pricing behaviour. They could also enable alignment of the spreads for particular transactions and affect the overall price paid by customers for trading currencies. |
| --- | --- |

(c)

Exchanges revealing their existing or intended bid-ask spreads, which disclosed the spread quoted by the traders for specific currency pairs and trade sizes. They enabled the participating traders to obtain greater certainty on the prices they were quoting and informed their subsequent pricing behaviour. They could also enable alignment of the spreads for particular transactions and affect the overall price paid by customers for trading currencies.

| (d) | Exchanges revealing other details of current or planned trading activities whereby the participating traders shared a combination of several of the previously mentioned commercially sensitive information, assisted the participating traders in their subsequent decisions. |
| --- | --- |

(d)

Exchanges revealing other details of current or planned trading activities whereby the participating traders shared a combination of several of the previously mentioned commercially sensitive information, assisted the participating traders in their subsequent decisions.

| (16) | The four settling parties acknowledged that these extensive and recurrent exchanges of sensitive current or forward looking information took place pursuant to a set of tacit rules that: (i) the participating traders would gather in the private STG Lads chatroom to disclose and exchange information throughout the trading day; (ii) the information exchanged in the chatroom would not be disclosed by the recipient traders to other competing traders outside the private chatroom; (iii) the information exchanged could be used to the benefit of the participating traders including to identify occasions appropriate for coordination; and, (iv) this information would not be used against those who shared it (together referred as the ‘underlying understanding’). Credit Suisse did not acknowledge the existence of an underlying understanding. |
| --- | --- |

(16)

| (17) | According to the four settling parties, the traders occasionally coordinated their trading activities with respect to FX spot trading of G10 currencies by refraining from trading as they otherwise had planned to undertake during a particular time window on account of another trader’s announced position or trading activity. This practice is known as ‘standing down’. However, during the period of participation of Credit Suisse in the infringement, there were no effective instances of standing down. |
| --- | --- |

(17)

| (18) | Credit Suisse was held liable for its participation in the extensive and recurrent exchanges of current or forward looking commercially sensitive information that took place in the STG Lads chatroom, which constitute concerted practices and/or agreements which are restrictive of competition by object within the meaning of Article 101 TFEU and Article 53 of the EEA Agreement. Credit Suisse was not held liable in respect of the underlying understanding and the occasional instances of coordination. |
| --- | --- |

(18)

2.3.   Addressees

| (19) | The Decision was addressed to the following legal entities: Credit Suisse Group AG, Credit Suisse Securities (Europe) Limited and Credit Suisse AG (together ‘Credit Suisse’ or ‘the addressees’). |
| --- | --- |

(19)

2.4.   Remedies

| (20) | The Decision applied the 2006 Commission Guidelines on Fines. The fining methodology and parameters were decided by the College of Commissioners on 22 January 2018 in the context of the settlement procedure. According to the case law, the principle of equal treatment applies to fine parameters for all parties to the same infringement irrespective of whether they follow the settlement or the ordinary procedure. Therefore, the same method for fines calculation was applied to calculate Credit Suisse’s fine and the fines for the four settling parties. |
| --- | --- |

(20)

2.4.1.   Basic amount of the fine

| (21) | The Commission considered appropriate to apply a specific proxy for the value of sales. FX spot transactions of G10 currencies do not generate sales in the usual sense of the term: they involve the exchange of a notional amount of money expressed in a certain currency into the equivalent notional amount expressed in another currency, the price of which is embedded in the ‘bid-ask spread’ (that is the difference between the bid price and the ask price) applied by the FX spot dealer. Both factors – the notional amounts exchanged and the applied bid-ask spreads – are therefore essential parameters of the value of sales related to the infringement. |
| --- | --- |

(21)

| (22) | The Commission determined the proxy for the relevant value of sales as follows:






  (a) | First, the notional amounts traded by the concerned undertaking in the FX spot transactions of G10 currencies were taken into account. |
| --- | --- | --- |

(22)

(a)

First, the notional amounts traded by the concerned undertaking in the FX spot transactions of G10 currencies were taken into account.

| (b) | Second, those amounts were multiplied by an appropriate adjustment factor, uniform for all settling and non-settling parties, reflecting the applicable bid-ask spreads in FX spot transactions of G10 currencies. The adjustment factor was in fact a combination of two: one related to market making activities and a second related to trading on own account. |
| --- | --- |

(b)

Second, those amounts were multiplied by an appropriate adjustment factor, uniform for all settling and non-settling parties, reflecting the applicable bid-ask spreads in FX spot transactions of G10 currencies. The adjustment factor was in fact a combination of two: one related to market making activities and a second related to trading on own account.

| (23) | The proxy for value of sales was based directly on the value of sales actually made by the undertakings during the months corresponding to their respective participation in the infringement, which was subsequently annualised. Given that the infringement covered the entire EEA, the proxy for the value of sales was determined on FX spot transactions of G10 currencies entered into with counterparties located in the EEA. |
| --- | --- |

(23)

2.4.2.   Adjustments to the basic amount

| (24) | The Commission applied to the notional amounts an appropriate, uniform factor based on the bid-ask spread levels observed in the evidence. |
| --- | --- |

(24)

2.4.3.   Aggravating or mitigating circumstances

| (25) | No aggravating circumstances were applied in this case. However, considering that Credit Suisse was not held liable for standing down or the underlying understanding, the Commission granted a reduction of the fine. |
| --- | --- |

(25)

2.4.4.   Specific increase for deterrence

| (26) | No deterrence multiplier was applied in this case. |
| --- | --- |

(26)

2.4.5.   Application of the 10 % turnover limit

| (27) | The amount of the fine was below the 10 % worldwide turnover maximum set out in Article 23(2) of Regulation (EC) No 1/2003. |
| --- | --- |

(27)

3.   CONCLUSION

| (28) | The following fine was imposed to Credit Suisse pursuant to Article 23(2) of Regulation (EC) No 1/2003: EUR 83 294 000. |
| --- | --- |

(28)

---

(1)  OJ L 1, 4.1.2003, p. 1. Regulation as amended by Regulation (EC) No 411/2004 (OJ L 68, 6.3.2004, p. 1).

(2)  The case does not concern FX spot e-commerce trading activity within the meaning of FX spot trades that are automatically booked by, or executed by either the relevant bank’s proprietary electronic trading platforms or computer algorithms.

(3)  Commission Notice on the conduct of settlement procedures in view of the adoption of decisions pursuant to Article 7 and Article 23 of Council Regulation (EC) No 1/2003 in cartel cases, OJ C 167, 2.7.2008, p. 1–6 (the ‘Settlement Notice’).

(4)  OJ L 123, 27.4.2004, p. 18.

---

| 6.5.2022 | EN | Official Journal of the European Union | C 185/65 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/65

---

Euro exchange rates (1)

5 May 2022

(2022/C 185/09)

1 euro =

| | Currency | Exchange rate |
| --- | --- | --- |
| USD | US dollar | 1,0568 |
| JPY | Japanese yen | 137,18 |
| DKK | Danish krone | 7,4405 |
| GBP | Pound sterling | 0,85190 |
| SEK | Swedish krona | 10,3748 |
| CHF | Swiss franc | 1,0355 |
| ISK | Iceland króna | 138,00 |
| NOK | Norwegian krone | 9,8463 |
| BGN | Bulgarian lev | 1,9558 |
| CZK | Czech koruna | 24,606 |
| HUF | Hungarian forint | 378,65 |
| PLN | Polish zloty | 4,6673 |
| RON | Romanian leu | 4,9485 |
| TRY | Turkish lira | 15,7051 |
| AUD | Australian dollar | 1,4669 |
| CAD | Canadian dollar | 1,3483 |
| HKD | Hong Kong dollar | 8,2948 |
| NZD | New Zealand dollar | 1,6273 |
| SGD | Singapore dollar | 1,4561 |
| KRW | South Korean won | 1 330,89 |
| ZAR | South African rand | 16,5862 |
| CNY | Chinese yuan renminbi | 6,9944 |
| HRK | Croatian kuna | 7,5398 |
| IDR | Indonesian rupiah | 15 250,92 |
| MYR | Malaysian ringgit | 4,5955 |
| PHP | Philippine peso | 55,364 |
| RUB | Russian rouble | |
| THB | Thai baht | 36,026 |
| BRL | Brazilian real | 5,2192 |
| MXN | Mexican peso | 21,2069 |
| INR | Indian rupee | 80,6185 |

Currency

Exchange rate

USD

US dollar

1,0568

JPY

Japanese yen

137,18

DKK

Danish krone

7,4405

GBP

Pound sterling

0,85190

SEK

Swedish krona

10,3748

CHF

Swiss franc

1,0355

ISK

Iceland króna

138,00

NOK

Norwegian krone

9,8463

BGN

Bulgarian lev

1,9558

CZK

Czech koruna

24,606

HUF

Hungarian forint

378,65

PLN

Polish zloty

4,6673

RON

Romanian leu

4,9485

TRY

Turkish lira

15,7051

AUD

Australian dollar

1,4669

CAD

Canadian dollar

1,3483

HKD

Hong Kong dollar

8,2948

NZD

New Zealand dollar

1,6273

SGD

Singapore dollar

1,4561

KRW

South Korean won

1 330,89

ZAR

South African rand

16,5862

CNY

Chinese yuan renminbi

6,9944

HRK

Croatian kuna

7,5398

IDR

Indonesian rupiah

15 250,92

MYR

Malaysian ringgit

4,5955

PHP

Philippine peso

55,364

RUB

Russian rouble

THB

Thai baht

36,026

BRL

Brazilian real

5,2192

MXN

Mexican peso

21,2069

INR

Indian rupee

80,6185

---

(1)  Source: reference exchange rate published by the ECB.

---

V Announcements

PROCEDURES RELATING TO THE IMPLEMENTATION OF COMPETITION POLICY

European Commission

| 6.5.2022 | EN | Official Journal of the European Union | C 185/66 |
| --- | --- | --- | --- |

6.5.2022

EN

Official Journal of the European Union

C 185/66

---

Prior notification of a concentration

(Case M.10431 – Ali Group / Welbilt)

(Text with EEA relevance)

(2022/C 185/10)

1.

This notification concerns the following undertakings:

| — | Ali Holding S.r.l. (‘Ali Group’, Italy), |
| --- | --- |

—

Ali Holding S.r.l. (‘Ali Group’, Italy),

| — | Welbilt, Inc (‘Welbilt’, US). |
| --- | --- |

—

Welbilt, Inc (‘Welbilt’, US).

Ali Group will acquire within the meaning of Article 3(1)(b) of the Merger Regulation sole control of the whole of Welbilt.

The concentration is accomplished by way of purchase of shares.

2.

| — | Ali Group: the Italian corporation designs, manufactures, markets and services a broad range of commercial and institutional foodservice equipment, including ice-making machines and ovens, used in major commercial and public venues. It has manufacturing facilities as well as sales and service subsidiaries across the world, including Europe. Ali Group is one of the world’s largest groups in this industry and operates under 80 global brands such as Baron, Olis, Lainox, Menumaster, XpressChef and Scotsman, |
| --- | --- |

—

Ali Group: the Italian corporation designs, manufactures, markets and services a broad range of commercial and institutional foodservice equipment, including ice-making machines and ovens, used in major commercial and public venues. It has manufacturing facilities as well as sales and service subsidiaries across the world, including Europe. Ali Group is one of the world’s largest groups in this industry and operates under 80 global brands such as Baron, Olis, Lainox, Menumaster, XpressChef and Scotsman,

| — | Welbilt: the American corporation offering equipment capable of storing, cooking, holding, displaying, dispersing and serving food and beverage products. It designs, manufactures and supplies equipment used by commercial and institutional service operators. Welbilt has manufacturing facilities operating throughout the Americas (where the company is mostly active), Europe and Asia. It offers products under brands such as Merrychef, Convotherm and Manitowoc. |
| --- | --- |

—

Welbilt: the American corporation offering equipment capable of storing, cooking, holding, displaying, dispersing and serving food and beverage products. It designs, manufactures and supplies equipment used by commercial and institutional service operators. Welbilt has manufacturing facilities operating throughout the Americas (where the company is mostly active), Europe and Asia. It offers products under brands such as Merrychef, Convotherm and Manitowoc.

3.

On preliminary examination, the Commission finds that the notified transaction could fall within the scope of the Merger Regulation. However, the final decision on this point is reserved.

4.

Observations must reach the Commission not later than 10 days following the date of this publication. The following reference should always be specified:

M.10431 – ALI GROUP / WELBILT

Observations can be sent to the Commission by email, by fax, or by post. Please use the contact details below:

Email: COMP-MERGER-REGISTRY@ec.europa.eu

Fax +32 22964301

Postal address:

| European Commission |
| --- |
| Directorate-General for Competition |
| Merger Registry |
| 1049 Bruxelles/Brussel |
| BELGIQUE/BELGIË |

European Commission

Directorate-General for Competition

Merger Registry

1049 Bruxelles/Brussel

BELGIQUE/BELGIË

---

(1)  OJ L 24, 29.1.2004, p. 1 (the ‘Merger Regulation’).

1

---