November 28
2021
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Emilija Berzanskaite
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25th October 2021
Competition & State Aid Covid-19

Action for annulment against the Commission Decision approving German scheme to compensate companies for COVID-19 damages published

An action for annulment against the Commission Decision in case SA.62784Art. 107 2b Federal Umbrella Scheme, which approved the German COVID-19 remedy scheme, has been published in the Official Journal. 

In May 2021, the Commission approved a German scheme totaling 10 billion euros to compensate companies of all sectors for damages related to the coronavirus outbreak. A German retailer, E. Breuninger GmbH & Co, brought an action for annulment before the General Court challenging the Commission Decision. 

The applicant argues, inter alia, that restricting the eligibility of undertakings with several business activities to those which achieve at least 80 % of their turnover from activities directly affected by the lockdown is arbitrary and that the approval of the aid scheme is disproportionate. In particular, the 80 % threshold established by the measure removes, without any objective reason, the causal link between the closure orders and the damage resulting therefrom to the detriment of undertakings with several business areas, since such undertakings might remain entirely without compensation despite being directly and significantly affected by the State measures.

Access the officially published action here and the case file T-525/21 here.

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