62022TO0722_INF
Order of the General Court (Fifth Chamber) of 27 October 2023 –AFG v Commission (Madeira Free Zone)
(Case T‑722/22) (
1
)
(State aid – Madeira Free Zone – Aid scheme implemented by Portugal – Decision finding that the scheme does not comply with Decisions C(2007) 3037 final and C(2013) 4043 final, declaring it to be incompatible with the internal market, and ordering the recovery of aid paid under that scheme – Definition of ‘State aid’ – Existing aid within the meaning of Article 1(b)(ii) of Regulation (EU) 2015/1589 – Recovery – Legitimate expectations – Legal certainty – Proportionality – Action manifestly lacking any foundation in law)
1.
Judicial proceedings – Decision taken by way of reasoned order – Conditions – Action manifestly inadmissible or manifestly lacking any foundation in law – Pleas raising questions already ruled on by the EU judicature before that action was brought
(Rules of Procedure of the General Court, Art. 126)
(see paragraphs 17-20)
2.
Aid granted by a Member State – Meaning – Selective nature of the measure – Measure conferring a tax advantage – Reference framework for determining the existence of an advantage – Measure introducing distinctions between operators who are in a comparable factual and legal situation in the light of the objective pursued by the common tax regime – Tax exemption not applicable to transactions comparable to those which govern whether it is granted – Measure which may be regarded as selective
(Art. 107(1) TFEU)
(see paragraphs 29-35)
3.
Aid granted by a Member State – Meaning – Selective nature of the measure – Derogation from the general tax system – Justification derived from the nature and general scheme of the system – Criteria for assessment
(Art. 107(1) TFEU)
(see paragraph 36)
4.
Aid granted by a Member State – Prohibition – Exceptions – Aid compatible with the internal market – Regional operating aid schemes – Restrictive interpretation
(Art. 107(1) TFEU)
(see paragraphs 54-58, 67, 68)
5.
Aid granted by a Member State – Existing aid and new aid – Measure amending an existing aid scheme – Implementation of the scheme in breach of the conditions laid down in the Commission’s approval decision – Modification affecting the substance of the scheme – Classification as new aid
(Art. 108(3) TFEU; Council Regulation 2015/1589, Art. 1(c))
(see paragraph 71)
6.
Aid granted by a Member State – Recovery of unlawful and incompatible aid – Aid granted in breach of the procedural rules laid down in Article 108 TFEU – Legitimate expectations entertained by the recipients – None save in exceptional circumstances
(Art. 108(2) and (3) TFEU; Council Regulation 2015/1589, Art. 16(1))
(see paragraphs 79-84)
7.
Aid granted by a Member State – Recovery of unlawful aid – No breach of the principle of legal certainty
(Art. 107 TFEU; Council Regulation 2015/1589, Art. 16(1))
(see paragraphs 87-100)
8.
Aid granted by a Member State – Recovery of unlawful and incompatible aid – Restoration of the prior situation – No breach of the principles of proportionality and equal treatment
(Art. 107 TFEU; Council Regulation 2015/1589, Art. 16(1))
(see paragraphs 104-107)
Operative part
1.
The action is dismissed as manifestly lacking any foundation in law.
2.
AFG, SA (Zona Franca da Madeira) is ordered to pay the costs.
(
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)	OJ C 24, 23.1.2023.