The Court of Justice of the European Union handed down judgement C-40/23 P following the European Commission's appeal against the judgement of the Court of First Instance in case T-469/20.
In this case, the Netherlands had sought the annulment of the Commission's decision concerning aid providing compensation for damage caused to a coal-fired power station following the ban on coal for electricity production.
As the Bill had not been notified to the Commission under Article 108(3) TFEU, the Commission examined the alleged aid after its notification under Directive 2015/1535.
Without formally finding that the measure did indeed confer an advantage on the beneficiary and therefore constituted State aid, the Commission concluded that the measure in question was compatible with the internal market, in accordance with Article 107(3)(c) TFEU.
The Netherlands challenged this decision before the General Court, which annulled it. The Commission then appealed against this judgement.
The Court of Justice confirmed that classification as State aid under Article 107(1) TFEU is necessary before applying Article 107(3) TFEU. Consequently, the Commission can only assess the compatibility with the internal market of measures constituting State aid.
For more information, see the judgement here.