AG Biondi: Swedish lock fee compensation may be State aid
Advocate General Biondi has delivered his opinion in Staten genom Sjöfartsverket v Stockholms Hamn AB (C‑401/24), a case referred by the Stockholm District Court concerning the compatibility of a longstanding compensation agreement with EU State aid rules.
The case concerns annual payments made by the Swedish Maritime Administration (Sjöfartsverket) to Stockholms Hamn AB, a municipally owned port operator, under a 1979 agreement. These payments compensated for lost revenue following the abolition of lock passage fees through Hammarby Lock, a key inland waterway. The arrangement, dating back to before Sweden’s EU accession, continued until 2021 and was periodically updated.
Advocate General Biondi states that such compensation may constitute State aid under Article 107(1) TFEU if Stockholms Hamn acted as an undertaking by carrying out economic activities and if the payments conferred a selective advantage not available under normal market conditions. It is for the national court to determine this based on factual circumstances, including the commercial nature of the lock operations.
He further considers whether the compensation would qualify as “existing aid” within the meaning of Article 1(b)(i) of Regulation 2015/1589, and if so, whether it must be regarded as “new aid” after Sweden’s accession in so far as its application was extended on several occasions and its amount adjusted in accordance with the original terms of the agreement under which it was established. According to the AG, the payment of compensation which was according to the original contract extended for periods of five years and based on a formula which remained unchanged over time would, subject to verification by the national courts constitute existing aid.
For more information, see AG Biondi’s opinion.