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Judgment of the General Court (Tenth Chamber) of 18 October 2023

Judgment of the General Court (Tenth Chamber) of 18 October 2023

Data

Court
General Court
Case date
18 oktober 2023

Verdict

Judgment of the General Court (Tenth Chamber) of 18 October 2023 –
Wizz Air Hungary v Commission (TAROM; COVID-19)

(Case T‑332/21)(1)

"(State aid - Romanian air transport market - Aid granted by Romania to TAROM in the context of the COVID-19 pandemic - State guarantee on loans - Decision not to raise any objections - Action for annulment - Locus standi - Substantial adverse effect on the applicant’s position on the market in question - Admissibility - Aid intended to make good the damage caused by an exceptional occurrence - Assessment of the damage - Causal link - Beneficiary’s pre-existing difficulties - Principle of non-discrimination - Freedom to provide services - Freedom of establishment - Obligation to state reasons)"

1. Action for annulmentNatural or legal personsMeasures of direct and individual concern to themCommission decision finding State aid compatible with the internal market without opening the formal investigation procedureAction by parties concerned within the meaning of Article 108(2) TFEUAction designed to safeguard the procedural rights of the parties concernedAdmissibility

(Arts 108(2) and 263, fourth para., TFEU; Council Regulation No 2015/1589, Art. 1(h))

(see paragraphs 10-13)

2. Action for annulmentNatural or legal personsMeasures of direct and individual concern to themIndividual concernCriteriaCommission decision finding an aid compatible with the internal marketAction of a rival undertaking claiming that its market position significantly affectedAdmissibilityObligation 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 themNoneDemonstration of a substantial adverse effect on the applicant’s competitive position on the market in question

(Arts 108(2) and (3) and 263, fourth para., TFEU)

(see paragraphs 14-33)

3. Action for annulmentNatural or legal personsMeasures of direct and individual concern to themDirect concernCriteriaCommission decision finding an aid compatible with the internal marketAction brought by an undertaking which is a competitor of the undertaking in receipt of aidCompetitor undertaking establishing that it is directly concerned

(Art. 263, fourth para., TFEU)

(see paragraph 34)

4. Aid granted by a Member StateProhibitionExceptionsAid compatible with the internal marketAid to make good the damage caused by natural disasters or exceptional occurrencesState guarantee to an airline to compensate it in the context of the COVID-19 pandemicAssessment in the light of Article 107(2)(b) TFEUCriteriaProportionality of the aidAssessment of the damage caused by the COVID-19 pandemic to the undertaking in receipt of the aid

(Art. 107(2)(b) TFEU)

(see paragraphs 47-62, 65-87, 89-93, 95-100, 103-116, 119-123, 127-135, 138-141)

5. Aid granted by a Member StateProhibitionExceptionsAid compatible with the internal marketAid to make good the damage caused by natural disasters or exceptional occurrencesState guarantee to an airline to compensate it in the context of the COVID-19 pandemicAssessment in the light of Article 107(2)(b) TFEUAssessment of compatibility with the principle of non-discriminationCriteriaObjective of the aidNeed for the aidProportionality of the aid

(Art. 107(2)(b) TFEU)

(see paragraphs 144-165)

6. Freedom to provide servicesProvisions of the TreatyScopeServices in the transport sector for the purposes of Article 58(1) TFEUAir transport servicesSpecific legal regime

(Arts 56, 58(1) and 100(2) TFEU)

(see paragraphs 166-168)

7. Aid granted by a Member StateProhibitionExceptionsAid compatible with the internal marketAid to make good the damage caused by natural disasters or exceptional occurrencesState guarantee to an airline to compensate it in the context of the COVID-19 pandemicAid compatible with the internal market pursuant to Article 107(2)(b) TFEUInfringement of the freedom to provide services and the freedom of establishmentNone

(Arts 58(1), 100(2) and 107(2)(b) TFEU)

(see paragraphs 169-171)

8. Action for annulmentNatural or legal personsMeasures of direct and individual concern to themCommission decision finding State aid compatible with the internal market without opening the formal investigation procedureAction by parties concerned within the meaning of Article 108(2) TFEUIdentification of the subject matter of the actionAction designed to safeguard the procedural rights of the parties concernedPleas that may be put forwardLack of independent content of such a plea in the present case

(Arts 108(2) and 263, fourth para., TFEU)

(see paragraphs 173-175)

9. Aid granted by a Member StateCommission decision not to raise objections to an aid schemeObligation to state reasonsScopeAccount taken of the context and all the legal rules governing the matter

(Arts 107(2)(b) and 296 TFEU)

(see paragraphs 177-187)

Operative part

The Court:

1. Dismisses the action;

2. Orders Wizz Air Hungary Légiközlekedési Zrt. (Wizz Air Hungary Zrt.) to pay the costs.