Judgment of the General Court (First Chamber) of 11 December 2018.BTB Holding Investments SA and Duferco Participations Holding SA v European Commission.State aid — Steel industry — Aid granted by Belgium in favour of a number of undertakings in the iron and steel industry — Decision declaring that aid incompatible with the internal market and ordering its recovery — Obligation to state reasons — Concept of State aid — Advantage — Private investor test.Case T-100/17.

Judgment // 11/12/2018 // 3 min read
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Judgment of the General Court (First Chamber) of 11 December 2018 –BTB Holding Investments and Duferco Participations Holding v Commission

(Case T‑100/17)

(State aid — Steel industry — Aid granted by Belgium in favour of a number of undertakings in the iron and steel industry — Decision declaring that aid incompatible with the internal market and ordering its recovery — Obligation to state reasons — Concept of State aid — Advantage — Private investor test)

  1. State aid — Concept — Grant of an advantage to the beneficiaries — State intervention mitigating the burdens normally included in the budget of an undertaking — Included

(Art. 107(1) TFEU)

(see paras 39-43)

  1. State aid — Concept — Assessment according to the private investor test — State shareholder of an undertaking — State acting as a public authority — Distinction as regards application of the private investor test — Information needed for an assessment

(Art. 107(1) TFEU)

(see paras 44-46, 51-53)

  1. State aid — Concept — Assessment according to the private investor test — Assessment of all factors relevant to the transaction at issue and its context — Burden of proof on the Commission — Scope

(Art. 107(1) TFEU)

(see paras 47, 48)

  1. Action for annulment — Jurisdiction of the EU judicature — Interpretation of the reasoning of an administrative measure — Limits

(Arts 263 TFEU and 264 TFEU)

(see para. 59)

  1. Acts of the institutions — Statement of reasons — Obligation — Scope — Essential formality distinct from the merits of the decision

(Art. 296 TFEU)

(see paras 62, 63, 199, 200)

  1. EU law — Principles — Principle of sound administration — Duty of diligence — Scope

(Charter of Fundamental Rights of the European Union, Art. 41)

(see paras 67, 68)

  1. State aid — Concept — Assessment according to the private investor test — Transfer of a shareholding — Determination of a price — Criteria

(Art. 107(1) TFEU)

(see paras 73-76)

  1. State aid — Concept — Assessment according to the private investor test — Assessment of all factors relevant to the transaction at issue and its context — Obligation of the Member State to provide objective and verifiable evidence showing the economic character of its activity — Burden of proof on the Commission — Scope

(Art. 107(1) TFEU)

(see paras 77-82, 85)

  1. State aid — Commission decision — Assessment of the legality by reference to the information available at the time of adoption of the decision

(Art. 107(1) TFEU)

(see paras 83, 84)

  1. State aid — Concept — Assessment according to the private investor test — Complex evaluation of economic matters — Discretion of the Commission — Judicial review — Limits

(Art. 107(1) TFEU)

(see paras 86-90, 141, 142)

  1. State aid — Concept — Criteria for assessment — Reasonableness of the operation for a private investor following a relatively long-term strategy

(Art. 107(1) TFEU)

(see paras 99, 204)

  1. State aid — Concept — Private investor test — Capital contribution — Capital contributions of private and public investors made at the same time — Criteria for assessment

(Art. 107(1) TFEU)

(see paras 260, 262-264)

Re:

Application pursuant to Article 263 TFEU and seeking partial annulment of Commission Decision (EU) 2016/2041 of 20 January 2016 on State aid SA.33926 2013/C (ex 2013/NN, 2011/CP) granted by Belgium to Duferco (OJ 2016 L 314, p. 22).

Operative part

The Court:

  1. Dismisses the action;

  2. Orders BTB Holding Investments SA and Duferco Participations Holding SA to pay the costs.

Competition , State aids