Brussels, 08/09/2011 (Agence Europe) - France Télécom received state aid between 1994 and 2002 that was incompatible with the common market, Advocate General of the Court of Justice of the EU Niilo Jääskinen ruled on Thursday 8 September (case C-81/10 P, France Télécom/Commission). The advocate general recommends that the Court reject an appeal by the French telecommunications group. This view is not binding but, in 80% of cases, judges in their rulings go along with the advocate general's opinion.
France Télécom, which was privatised in 1991, was granted a special tax regime between 1994 and 2002, in particular in relation to occupation tax. In 2004, the European Commission formed the view that this amounted to illegal state aid. The Commission assessed the amount to be recovered as being between €798 million and €1.114 billion, before interest. The General Court of the EU upheld this decision in 2009, but the French telecommunications group lodged an appeal, arguing, inter alia, that the period for recovery of the aid at issue had lapsed.
The advocate general decided that the General Court had correctly ruled that the tax regime applied to France Télécom constituted illegal state aid as it gave France Télécom an advantage.
If the judges decide to follow the advocate general's opinion it will have no financial impact on France Télécom, the group said in a press release. It said that in January 2010 it had already paid €1.017 billion to the French authorities - €964 million plus €53 million in interest - by way of sums that could be demanded in this case. (L.C./transl.rt)