CJEU clarifies whether a compensation for a free lock service constitutes State aid
The Court of Justice (CJEU) has delivered its judgment in the preliminary ruling Stockholms Hamn (C-401/24) concerning the conditions under which compensation paid by Swedish authorities to a municipally owned company operating a free lock service may qualify as State aid and clarifying the concepts of “existing” and “new” aid.
The ruling originates from a dispute between the Swedish Maritime Administration and Stockholms Hamn (the operator of the Hammarby lock in Stockholm). Sweden cancelled passage fees for two major waterways and compensated Stockholm’s port company for lost income, but after ending the agreement in 2021, the Maritime Administration demanded repayment, claiming the payments were unlawful State aid, an allegation the port rejects, arguing the lock service isn’t an economic activity and the compensation merely covered a public service obligation.
The Court held that it is for the national court to determine whether Stockholms Hamn performs an economic activity and thus qualifies as an “undertaking.” It indicated that the compensation likely arose from public policy rather than market conduct and may fall under a public service obligation, fulfilling the Altmark criteria. The Court added that any effect on trade or competition depends on whether a market for lock services exists at all, which is improbable given the operation of both waterways is obligatorily free.
The CJEU also assessed whether the compensation could be considered “existing aid,” since the scheme was established before Sweden’s accession to the EU.
For more information, see the CJEU’s judgment.