Case T-158/07: Action brought on 7 May 2007 — COFAC v Commission
Date: 2007-07-07
Institutions: Court of First Instance
Subjects: EU aid, European Commission, European Social Fund, action for annulment (EU), aid system, vocational training

C 155/36

EN

Official Journal of the European Union

7.7.2007

The applicant also submits that, by increasing the basic amount
of the fine by a deterrence factor of 100 %, the Commission
infringed Article 23(1) of Regulation No 1/2003 (1) and the
guidelines for setting fines based thereon (2), as well as the prin-
ciples of proportionality and equality. The applicant contends
further that, contrary to Article 23(1) of Regulation No 1/2003
and the guidelines on fines, the Commission imposed a 50 %
increase in the fine in respect of repeat offences.

(1) 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 2003 L 1, p. 1).

(2) Commission notice: Guidelines on the method of

setting
fines imposed pursuant to Article 15(2) of Regulation No 17 and
Article 65(5) of the ECSC Treaty (OJ 1998 C 9, p. 3).

Action brought on 7 May 2007 — COFAC v Commission

(Case T-158/07)

(2007/C 155/65)

Language of the case: Portuguese

Parties

Applicant: COFAC — Cooperativa de Formação e Animação
Cultural, crl
(represented by: Luís Gomes,
lawyer)

(Lisbon, Portugal)

Defendant: Commission of the European Communities

tion of the aid granted … and after the adjustments to the costs
and funding structures relating to the file in accordance with the
judicial decisions or the audits/re-examinations carried out in
respect of the bodies in question.’

None the less, the Portuguese legal proceedings brought against
the applicant ended in an inconclusive verdict that the prosecu-
tion was time-barred, from which of course no inference may
be drawn as to any reduction.

That having been said, the applicant has never been notified by
the national authorities of any final preparation arising out of
the audit or re-assessment, in the conclusions of which it played
no part, and it has never been able to defend itself against the
charges of failing to observe the criteria for costs and funding in
the file.

According to the settled case-law of the Court of First Instance,
a Commission decision reducing or cancelling financial assis-
tance granted by the ESF is capable of affecting the beneficiaries
of that assistance directly and individually.

The applicant has never been given the chance effectively to
make known its views to the Commission on the reduction of
the assistance, with the result that the Commission's contested
decision is vitiated by unlawfulness and must, accordingly, be
annulled.

the rights of

the
That decision was adopted in breach of
defence, which constitute a fundamental principle of Com-
munity law, according to which all addressees in respect of
whom decisions may be adopted adversely affecting their inter-
ests to an appreciable extent must be placed in a position in
which they can effectively make known their views on the
matters on which the decision at issue was based.

Form of order sought

Action brought on 7 May 2007 — COFAC v Commission

— annulment, pursuant

to Article 230 EC, of Commission
Decision D(2004) 24253 of 9 November 2004, reducing
the amount of the financial assistance granted by the Euro-
pean Social Fund (‘the ESF’) to the applicant by Decision
C(87) 0860 of 30 April 1987 (file No 880707 P1);

— an order that the Commission should pay the costs.

(Case T-159/07)

(2007/C 155/66)

Language of the case: Portuguese

Pleas in law and main arguments

Parties

On 1 March 2007 the applicant was notified of the Commis-
sion's decision to reduce by EUR 25 291,75 the financial assis-
tance granted to it by Decision C(87) 0860 of 30 April 1987,
on the ground that ‘evidence has come to light of irregularities
in the performance of certain vocational training actions co-
financed by the ESF, … after the conclusion of the criminal
prosecutions relating to the management and specific applica-

Applicant: COFAC — Cooperativa de Formação e Animação
Cultural, crl
(represented by: Luís Gomes,
lawyer)

(Lisbon, Portugal)

Defendant: Commission of the European Communities