C‑588/23:ECJ rules on extension of state aid recovery to companies with economic continuity
Today, the Court of Justice (ECJ) has issued a landmark judgment a preliminary ruling case (C‑588/23 Scai v Regione Campania) that clarifies the scope of national authorities’ power to recover state aid in cases involving economic continuity between companies. The judgment, which stems from a dispute between Scai Srl (Scai) and Regione Campania (Italy), addresses whether national authorities can extend state aid recovery obligations to a company not directly identified in the European Commission’s (Commission’s) recovery decision.
The case arose after the Commission had ordered the recovery of incompatible state aid granted to Buonotourist. Following Buonotourist’s bankruptcy, Regione Campania sought to recover the funds from Scai, arguing that there was economic continuity between the two entities. Scai contested this claim, asserting that it had not been part of the Commission’s decision and should not be held liable for the recovery.
The regional administrative court of Campania requested the ECJ to clarify whether EU law prevents national authorities from ordering the recovery of state aid from a different company than the one identified in the Commission’s decision. The ECJ confirmed that in case there is economic continuity between the new company and the original beneficiary, national authorities can extend recovery obligations to other companies if the economic advantage from the aid has been transferred due to changes in business ownership or other related circumstances.
For further information, see the ECJ’s judgment.