In a judgment handed down on Wednesday 5 February (Case T-743/21), the General Court of the European Union dismissed Ryanair’s action against a European Commission decision of July 2021 reauthorising Portuguese State aid totalling €1.2 billion to rescue TAP Air Portugal (see EUROPE 12764/18).
In May 2021, the Irish low-cost airline had obtained the General Court’s annulment of an initial Portuguese aid granted to TAP’s parent company under the Commission’s guidelines on State aid for rescuing and restructuring undertakings in difficulty (Case T-465/20 - see EUROPE 12722/24).
The General Court dismissed Ryanair’s action, ruling that the Commission had not, this time, failed to comply with the conditions governing eligibility for rescue aid. In particular, the EU institution could rightly conclude that TAP’s parent company belonged to a group and that TAP’s difficulties were too serious to be resolved by the group.
According to the General Court, the European Commission rightly considered that the measure met an objective of common interest and was appropriate and proportionate. The aid was also subject to a comprehensive examination of its negative effects on competition. In addition, the principles of non-discrimination, freedom to provide services and freedom of establishment were not breached, the European court ruled.
See the General Court’s judgment: https://aeur.eu/f/fd0 (Original version in French by Mathieu Bion)