Court of Justice finds essential ship pilotage services fall outside EU State aid rules
The Court of Justice has delivered its judgment in case C-117/256, Canal Sea Services and Others, concerning whether the grant of an exclusive right to provide mandatory harbour pilotage services to public port entities constitutes State aid under Article 107(1) TFEU.
The dispute arose after Romania reserved compulsory pilotage services in major maritime ports to state-owned entities, excluding private operators. The referring court asked, in essence, whether such an arrangement constitutes an unlawful State monopoly or State aid.
The Court held that mandatory harbour pilotage in favour of public port entities does not constitute State aid under Article 107(1) TFEU, provided the activity is intrinsically linked to public interest duties such as maritime traffic control, safety, and environmental protection and therefore serves core state responsibilities rather than ordinary market competition. Since Article 107(1) TFEU applies only to undertakings carrying out economic activities, the exclusive right granted to public entities does not constitute State aid in those circumstances.
The Court also clarified that neither the existence of a legal monopoly nor the charging of user fees alters that conclusion where tariffs are approved by public authorities and the service remains inseparable from public safety and environmental functions.
For more information, see the CJEU’s Judgment (not available in English at the time of publication)