Judgment of the General Court (Fifth Chamber) of 16 July 2014 — Germany v Commission

(Case T‑295/12)

‛State aid — Animal carcass and slaughter waste disposal services — Maintaining epidemic reserve capacity — Decision declaring aid to be incompatible with the internal market — Advantage — Service of general economic interest — Compensation relating to a public service obligation — Effect on trade between Member States and distortion of competition — Need for aid — Subsidiarity — Duty to state reasons’

1. Competition — Undertakings entrusted with the operation of services of general economic interest — Definition of services of general economic interest — Member States’ discretion — Limits — Review by the Commission only in the event of manifest error (Arts 14 TFEU, 106(2) TFEU, 107 TFEU, 108 TFEU and 168 TFEU; Commission Notice 2001/C 17/04, point 22) (see paras 44-46, 50-53, 175, 176)

2. State aid — Concept — Acceptance of responsibility for costs of maintaining an epidemic reserve capacity — Cost inherent in the economic activity of breeders and abattoirs — Included — Application of the principle that the polluter pays (Arts 106(2) TFEU and 107(1) TFEU; European Parliament and Council Regulation No 1069/2009) (see paras 58-61)

3. State aid — Commission decision — Judicial review — Manifest error of assessment — Insufficient to entail annulment of the decision — Requirement of an economic advantage to the aid recipient (Arts 106(2) TFEU and 107(1) TFEU) (see paras 67, 138, 173)

4. State aid — Concept — Measures designed to compensate for the cost of public service missions undertaken by an undertaking — Not included — Conditions — Clearly defined public service obligations — Objective and transparent establishment of the parameters used to calculate the compensation — Limitation of compensation to the cost — Determination of the compensation, where the undertaking not selected by a public contract procedure, on the basis of an analysis of the costs of an average undertaking in the sector concerned (Arts 106(2) TFEU and 107(1) TFEU) (see paras 69, 70, 84, 87, 92-97, 100, 111, 127, 130-133, 185)

5. Competition — Undertakings entrusted with the operation of services of general economic interest — Compensation for the costs generated by the public service mission — Member States’ discretion — Limits — Review by the Commission — Judicial review — Limits (Arts 106(2) TFEU and 107(1) TFEU) (see paras 110, 116)

6. Acts of the institutions — Statement of reasons — Obligation — Scope — Commission decision finding aid to be incompatible with the common market (Arts 107(1) TFEU and 296 TFEU) (see paras 134, 145, 163)

7. State aid — Concept — Granting of an advantage to beneficiaries — Measures designed to compensate for possible competitive disadvantages affecting undertakings established in a given region of a Member State — Included (Art. 107(1) and (3) TFEU) (see para. 144)

8. State aid — Adverse effect on competition — Effect on trade between Member States — Criteria for assessment — Scope of the burden of proof on the Commission (Art. 107(1) TFEU) (see paras 151, 152, 157, 160)

9. State aid — Prohibition — Exceptions — Discretion of the Commission — EU management guidelines for aid in the form of public service compensations — Self-limitation on the discretion of the Commission — Obligation to comply with the principles of equal treatment and protection of legitimate expectations (Art. 107(3) TFEU; Commission Notice 2012/C 8/03, Sections 2.2 to 2.10) (see para. 169)

Re:

ACTION for annulment of Commission Decision 2012/485/EU of 25 April 2012 on State aid SA.25051 (C 19/10) (ex NN 23/10) granted by Germany to the Zweckverband Tierkörperbeseitigung in Rhineland-Palatinate, Saarland, Rheingau-Taunus-Kreis and Landkreis Limburg-Weilburg (OJ 2012 L 236, p. 1).

Operative part

The Court:

1. Dismisses the action;