June 18
2021
Trajan Shipley
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9th June 2021
Competition & State Aid

General Court annuls Commission decision that there was no Danish State aid in the failure to collect an environmental charge from shops operating on the border

The General Court delivered its judgment in Dansk Erhverv v Commission (T-47/19) today, granting the applicants (a Danish trade association) their request for annulment of the European Commission’s decision that the non-charging of a mandatory deposit scheme and other related measures to shops operating on the Danish-German border did not constitute illegal State aid.

Background to the case

The mandatory deposit scheme stems from the Packaging Waste Directive (94/62), which requires a deposit (plus VAT) to be charged on certain non-reusable drinks. This must be charged at each distribution level until transferred to the end-consumer and refunded on return of the packaging. Non-compliance with the scheme is punishable by fin

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