Competition Law in Tourism

TOURISM LAW AND COMPETITION – A PORTUGUESE PERSPECTIVE 467 Considering the above, the European Commission informed the Portuguese State that it would raise no objections on the rescue aid, judging it to be compatible with the internal market. Subsequently, on 16 July 2020 the Council of Ministers has approved the acquisition by the Portuguese State of a supplementary shareholding position in TAP’s holding company (TAP SPGS), alongside economic rights and supplementary payments, resulting in holding 72,5% of the shares (with the inherent economic rights) of TAP144. As referred above, on 12 August 2020, the Portuguese State (through Directorate-General of Treasury and Finance) has filed with the Competition Authority the acquisition of sole control over TAP, pursuant to merger control rules and the administrative proceeding is ongoing145. On 23 April 2021, the Commission approved EUR 462 million aid to TAP for compensation of the damages directly linked to the COVID 19 outbreak between 19 March and 30 June 2020. And in this context, the Commission disclosed that it is “currently assessing the restructuring plan submitted by Portugal” in the context of the above referred procedure146. This type of compensation is based on article 107(2)(b)TFEUwhich enables the Commission to approve State aid granted to compensate specific companies or specific sectors for the damages directly caused by exceptional occurrences. The Commission considers that the coronavirus outbreak qualifies as an exceptional occurrence, as it is an extraordinary, unforeseeable event having a significant economic impact. As a result, exceptional interventions by the Member States to compensate for the damages directly linked to the outbreak are justified. F.2.4.2. Aid scheme in favour of SATA SATA Air Açores was incorporated in 1941 and is a limited liability company (Sociedade Anónima) fully owned by the Regional Government. SATA employs 1400 144 More information available at the Council of Ministers press release available at: https://www.portugal.gov. pt/pt/gc22/governo/comunicado-de-conselho-de-ministros?i=359. This concerns the acquisition by the Portuguese State of the other controlling parent of TAP SGPS, Atlantic Gateway, SGPS, Lda., of a shareholding of 22,5% and corresponding voting rights, for the amount of 55 million euros. For more information on TAP’s structure of control in the last five years, please see note 58. 145 More information available at: https://extranet.concorrencia.pt/PesquisAdC/CCENT_Page.aspx?Ref= Ccent_2020_20. 146 Press Release available here: https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1928. In this context, the Commission declared that “In order to ensure that there will be no overcompensation, the measure provides that Portugal, by September 2021, Portugal will review and report back to the Commission on the amount of actual damage suffered, following independent verification based on the company’s audited accounts. Any public support received by TAP in excess of the actual damage will have to be returned to Portugal”.

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