Competition Law in Tourism

STATE AIDS TO AIRLINES DUE TO COVID-19 AND RYANAIR’S ACTIONS 715 for State aid measures to support the economy in the current COVID-19 outbreak”3. Ryanair has put forward four pleas, which will be examined below. 4.4.1. Infringement of Article 107(3)(b) TFEU For Ryanair, with the exception of the banking sector, there are very few decisions that authorise a measure based on the serious disturbance in the economy of a Member State with regard to individual companies. Moreover, the Commission did not credibly demonstrate that the added value or jobs created by Finnair would in itself allow the conclusion that the measure in question is justified to remedy a serious disturbance in the Finnish economy. The Irish low-cost airline further argued that the Commission is obliged to weigh the aid’s beneficial effects in achieving the objectives set out in article 107(3) (b)TFEUagainst its negative effects on trading conditions and themaintenance of undistorted competition. However, according to the CJEU, article 107(1) TFEU sets out that aid granted by the Member States or through State resources is compatible with the internal market, “in any form whatsoever”. Thus, the European judge warned that article 107(3)(b) TFEU applies to both aid schemes and individual aid (Ubi lex non distinguit, nec nos distinguere debemus). Therefore, individual aid can be declared compatible with the internal market if it is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of the Member State concerned. Accordingly, the Finnish authorities consider that, because of its importance for the Finnish economy, the insolvency of Finnair would aggravate the then disturbance in its economy. The Commission did not consider that the measure alone remedied the serious disturbance in the Finnish economy, but rather sought to establish that the measure, because of Finnair’s importance for the Finnish economy, was intended to remedy the disturbance caused by the pandemic. Article 107(3)(b) TFEU does not require the aid alone to have the potential to remedy the serious disturbance in the economy of the Member State, but several aid measures that contribute to that end can co-exist. 3 In this Communication, the Commission sets out the compatibility conditions that it will apply, in principle, to aid granted by the Member States under article 107(3)(b) TFEU. Therefore, Member States must show that the aid measures notified to the Commission under this Communication are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of the Member State concerned and that all the conditions are fully respected.

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