Information;Judgment — ECLI:EU:T:2023:643
Date: 2023-10-18
Language of the case: English
Subject matter: State aids;Competition
Procedure: Action for annulment - unfounded
Origin: Ireland

Judgment of the General Court (Tenth Chamber) of 18 October 2023 – Ryanair v Commission (Brussels Airlines; COVID-19) (Case T‑14/21) (1) (State aid – Belgian air transport market – Aid granted by Belgium to Brussels Airlines in the context of the COVID-19 pandemic – Recapitalisation – Loan – Decision not to raise objections – Temporary framework for State aid measures – Measure intended to remedy a serious disturbance in the economy of a Member State – Failure to weigh the beneficial effects of the aid against its adverse effects on trading conditions and the maintenance of undistorted competition – Equal treatment – Freedom of establishment – Freedom to provide services – Obligation to state reasons) 1. Action for annulment – Natural or legal persons – Measures of direct and individual concern to them – Commission decision finding State aid compatible with the internal market without opening the formal investigation procedure – Action by parties concerned within the meaning of Article 108(2) TFEU – Action designed to safeguard the procedural rights of the parties concerned – Admissibility (Arts 108(2) and 263, fourth para., TFEU; Council Regulation 2015/1589, Art. 1(h)) (see paragraphs 11-14) 2. Action for annulment – Natural or legal persons – Measures of direct and individual concern to them – Individual concern – Criteria – Commission decision finding aid compatible with the internal market – Action of a rival undertaking claiming that its market position is significantly affected – Admissibility – Obligation for the rival undertaking to provide a precise definition of the market at issue and to compare the situation of all the competitors present on that market in order to differentiate itself in relation to them – None – Demonstration of a substantial adverse effect on the position of the competing undertaking on the market in question (Arts 108(2) and (3) and 263, fourth para., TFEU) (see paragraphs 15-33) 3. Action for annulment – Natural or legal persons – Measures of direct and individual concern to them – Direct concern – Criteria – Commission decision finding aid compatible with the internal market – Action brought by an undertaking which is a competitor of the undertaking in receipt of aid – Competing undertaking establishing that it is directly concerned (Art. 263, fourth para., TFEU) (see paragraph 34) 4. Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the COVID-19 pandemic – Aid measure consisting of a subsidised interest loan and recapitalisation of an airline – Criteria for assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, points 49, 52, 53, 54, 71 and 72) (see paragraphs 43-69, 77-85, 88-92, 95-100, 103-110, 118-123, 127, 128, 134-136, 140-142) 5. Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the COVID-19 pandemic – Aid measure consisting of a subsidised interest loan and recapitalisation of an airline – Risk of insolvency of the airline in the absence of the recapitalisation measure – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point 49(a)) (see paragraphs 77-85) 6. Aid granted by a Member State – Prohibition – Derogations – Aid that may be considered compatible with the common market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the COVID-19 pandemic – Aid measure consisting of a subsidised interest loan and recapitalisation of an airline – Recapitalisation measure to be used to achieve a common interest – Systemic importance of the beneficiary company for the economy of the country concerned – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point 49(b)) (Art. 107(3)(b) TFEU) (see paragraphs 86-100) 7. Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Assessment in the light of Article 107(3)(b) TFEU – Taking into account previous practice – Precluded (Art. 107(3)(b) TFEU) (see paragraphs 93, 94, 158, 159) 8. Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the COVID-19 pandemic – Aid measure consisting of a subsidised interest loan and recapitalisation of an airline – Inability of the airline to finance all its needs on the market on affordable terms – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point 49(c)) (see paragraphs 101-111) 9. Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the COVID-19 pandemic – Aid measure consisting of a subsidised interest loan and recapitalisation of an airline – Recapitalisation measure representing the most appropriate and the least distortive to competition – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 91 I/01, point 53) (see paragraphs 112-123) 10. Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the COVID-19 pandemic – Aid measure consisting of a subsidised interest loan and recapitalisation of an airline – Recapitalisation measure with safeguards against aggressive commercial expansion by the beneficiary – No error of assessment (Art. 107(3)(b) TFEU; Commission Communication 2020/C 2020/C 91 I/01, point 71) (see paragraphs 124-136) 11. Aid granted by a Member State – Derogations – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance for the national economy in the context of the COVID-19 pandemic – Assessment in the light of the Commission Communication on the Temporary Framework for State aid measures to support the economy in the COVID-19 pandemic – Aid measure consisting of a subsidised interest loan and recapitalisation of an airline – Measure necessary to remedy a serious disturbance in the national economy (Art. 107(3)(b) TFEU) (see paragraphs 147-159) 12. Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Assessment in the light of Article 107(3)(b) TFEU – Criteria – Weighing the beneficial effects of the aid against its adverse effects on trading conditions and the maintenance of undistorted competition – Not a necessary criterion (Art. 107(3)(b) TFEU) (see paragraphs 160-166) 13. Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Granting a soft loan and recapitalisation to an airline to compensate it in the context of the COVID-19 pandemic – Aid compatible with the internal market under Article 107(3)(b) TFEU – Assessment of compatibility with the principle of non-discrimination – Criteria – Objective of the aid – Need for the aid – Proportionality of the aid (Art. 107(3)(b) TFEU) (see paragraphs 168-182) 14. Aid granted by a Member State – Prohibition – Derogations – Aid capable of being regarded as compatible with the internal market – Aid to remedy serious disturbance in the economy of a Member State – Assessment – Aid measure for an airline that is of importance for the national economy in the context of the COVID-19 pandemic – Aid compatible with the internal market under Article 107(3)(b) TFEU – Infringement of the freedom to provide services and the freedom of establishment – None (Arts 49, 58(1), 100(2) and 107(3)(b) TFEU) (see paragraphs 183-190) 15. Aid granted by a Member State – Commission decision not to raise objections to an aid scheme – Obligation to state reasons – Scope – Account taken of the context and all the legal rules governing the matter (Arts 107(3)(b) and 296 TFEU) (see paragraphs 198-205) Operative part The Court: 1. Dismisses the action; 2. Orders Ryanair DAC to bear its own costs and to pay those incurred by the European Commission and by Brussels Airlines SA/NV; 3. Orders the Kingdom of Belgium and the Federal Republic of Germany to bear their own costs. 1 OJ C 72, 1.3.2021.