Commission orders recovery of incompatible Estonian state aid in favor of Tartu Agro AS
Today, the European Commission concluded that Estonia violated state aid rules by renting agricultural land to Tartu Agro AS below-market rates. Following a formal complaint by a competitor, the Commission opened an in-depth investigation in 2017. It concluded that the lease provided Tartu Agro AS with an unfair advantage over competitors because it did not comply with the market economy operator principle. The beneficiary challenged this decision. In 2022, the General Court annulled the initial decision of the Commission due to errors in assessing the rental price and contract terms (Judgment of 13 July 2022, T-150/20 – Tartu Agro AS v European Commission).
The Commission reopened its investigation and confirmed that Tartu Agro AS received incompatible aid until the end of 2019, when Estonia adjusted the lease fee in order to enforce the first Commission decision . Estonia must now recover the remaining aid, including interest. The final amount will still be determined considering past recoveries already made.
A non-confidential version of the decision will be made available under the case number SA.39182 in the state aid register.