Daily News 10 / 08 / 2023

State aid: Commission approves €6.5 billion German scheme to address carbon leakage risk for energy-intensive companies resulting from national fuel emission trading system

The European Commission has approved, under EU State aid rules, a €6.5 billion German scheme to partially compensate energy-intensive companies to address the risk of carbon leakage from higher fuel prices resulting from the German fuel emission trading system (‘German fuel ETS').

The measure will benefit companies active in sectors and sub-sectors listed the EU ETS Carbon Leakage List. Those sectors face significant emission costs and are particularly exposed to international competition. The compensation will be granted to eligible companies through a partial refund of the additional costs incurred in the previous year, with the final payment to be made in 2031. The level of compensation is between 65% and 95% of the costs, depending on the emission intensity of the beneficiaries. In order to maintain incentives for beneficiaries to switch to less polluting fuels, the aid amount is calculated based on fuel and heat benchmarks.

The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(c) TFEU. On this basis, the Commission approved the German scheme under EU State aid rules.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: "This €6.5 billion scheme paves the way for Germany to reduce the risk of carbon leakage for its energy-intensive industries in the context of its national fuel emission trading system. At the same time, the scheme maintains incentives for a cost-effective decarbonisation of the German economy, in line with the Green Deal objectives. And this while keeping distortions of competition to the minimum."

A press release is available online.

(For more information: Arianna Podesta – Tel.: +32 2 298 70 24; Sara Simonini- Tel.: +32 2 298 33 67)

State aid: Commission approves €350 million German scheme to support rollout of charging infrastructure for electric vehicles

The European Commission has approved, under EU State aid rules, a €350 million German scheme to support the rollout of high-power charging (‘HPC') infrastructure for electric vehicles along the German motorways. The scheme envisages the deployment of 952 HPC points in around 200 motorway locations.

Under the scheme, the aid will take the form of direct grants for the installation of each HPC point, as well as for the operation of the HPC infrastructure. The scheme will be open to all companies active in the construction and operation of recharging infrastructure. The projects will be selected through an open, competitive and non-discriminatory bidding process.

The Commission assessed the scheme under EU State aid rules, in particular  Article 107(3)(c) TFEU, which enables Member States to support the development of certain economic activities under certain conditions, and the 2022 Guidelines on State aid for climate, environmental protection and energy(‘CEEAG'). The Commission found that the German scheme is necessary and appropriate to allow for the deployment of HPC infrastructure at a large scale, thereby contributing to the EU's strategic objectives related to the green transition, notably the objectives of the European Green Deal and the ‘Fit for 55' package. In addition, the Commission found that the aid will have an ‘incentive effect', as the beneficiaries would not carry out the relevant investments in the absence of public support. Finally, the Commission concluded that the scheme is proportionate, as the aid will be limited to the minimum necessary and will not have undue negative effects on competition and trade in the EU. In particular, the German authorities will ensure that the prices for recharging electric vehicles at the newly deployed HPC points are in line with those of comparable existing infrastructure. On this basis, the Commission approved the German scheme under EU State aid rules.

The non-confidential version of the decision will be made available under the case number SA.105414 in the State aid register on the Commission's competition website, once any confidentiality issues have been resolved.

(For more information: Arianna Podesta – Tel.: +32 2 298 70 24; Sara Simonini- Tel.: +32 2 298 33 67)

Aides d'État: la Commission autorise un régime roumain d'un montant de 200 millions d'euros afin d'indemniser les propriétaires forestiers pour les restrictions d'exploitation

La Commission européenne a autorisé, en vertu des règles de l'UE en matière d'aides d'État, un régime roumain d'un montant de 200 millions d'euros (998 millions RON) visant à indemniser les propriétaires forestiers pour le bois non coupé en raison d'exigences écologiques obligatoires. Le régime vise à mettre un terme à l'appauvrissement de la biodiversité et à l'inverser, à améliorer les services écosystémiques et à préserver les habitats et les paysages.

Dans le cadre de ce régime, qui s'appliquera jusqu'au 31 décembre 2027, l'aide prendra la forme de subventions directes aux propriétaires forestiers privés. Le montant de l'aide par bénéficiaire sera calculé sur la base du prix moyen d'un mètre cube de bois sur pied et du volume annuel moyen de forêt non exploitée par hectare et par an.

La Commission a apprécié le régime au regard des règles de l'UE en matière d'aides d'État, en particulier de l'article 107, paragraphe 3, point c), du TFUE, qui permet aux États membres de soutenir le développement de certaines activités économiques sous certaines conditions, et des lignes directrices de 2022 concernant les aides d'État dans les secteurs agricole et forestier et dans les zones rurales. La Commission a estimé que le régime était nécessaire et approprié pour soutenir le développement du secteur forestier. Enfin, la Commission est parvenue à la conclusion que le régime était proportionné, car il est limité au minimum nécessaire, et qu'il aurait des incidences limitées sur la concurrence et les échanges entre les États membres. Sur cette base, la Commission a autorisé le régime roumain, en vertu des règles de l'UE en matière d'aides d'État.

La version non confidentielle de la décision sera publiée sous le numéro SA.107567 dans le registre des aides d'État figurant sur le site web de la Commission consacré à la concurrence, dès que les éventuels problèmes de confidentialité auront été résolus.

(Pour plus d'informations: Arianna Podesta – Tél.: +32 2 298 70 24; Sara Simonini- Tél.: +32 2 298 33 67)

State aid: Commission approves €750 million Austrian scheme to support companies in the context of the coronavirus pandemic

The European Commission has approved, under EU State aid rules, a €750 million Austrian measure to support companies in the context of the coronavirus pandemic.

Under the measure, the granted aid takes the form of direct grants to compensate companies for the damages suffered between 16 March 2020 and 31 March 2022 due to the coronavirus pandemic and the restrictive measures imposed by the Austrian authorities to limit the spread of the virus.

The Commission assessed the measure under Article 107(2)(b) TFEU,  which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or sectors for the damages directly caused by exceptional occurrences, such as the coronavirus outbreak.

The Commission found that the Austrian measure provides compensation for damage that is directly linked to the coronavirus pandemic. The Commission also found that the measure is proportionate, as the compensation does not exceed what is necessary to make good the damage.

On this basis, the Commission approved the scheme under EU State aid rules.

More information on actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the number SA.108173 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.

(For more information: Arianna Podesta – Tel.: +32 2 298 70 24; Sara Simonini- Tel.: +32 2 298 33 67)

Mergers: Commission clears creation of joint venture by Savvy, Tencent and Ying

The European Commission has approved, under the EU Merger Regulation, the creation of a joint venture by Savvy Games Group (‘Savvy') of Saudi Arabia, Tencent Holdings Limited (‘Tencent') and Mr Ying Shuling, both of China.

The joint venture, VSPN Group Limited, organises and commercialises eSports tournaments and provides influencer talent management and related promotional services. Savvy organises and commercialises eSports events. Tencent is a technology company whose activities include developing and publishing video games, organising eSport tournaments and providing live game streaming services. Mr Ying Shuling is the chairman and founder of VSPN.

The Commission concluded that the proposed acquisition would raise no competition concerns, given that the joint venture has negligible actual and foreseen activities in the European Economic Area. The transaction was examined under the simplified merger review procedure.

More information is available on the Commission's competition website, in the public case register under the case number M.11080.

(For more information: Arianna Podesta – Tel.: +32 2 298 70 24; Marta Pérez-Cejuela – Tel.: +32 229 63770)

Mergers: Commission clears acquisition of certain Lumen's businesses and assets by Colt

The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of (i) Lumen Technologies Austria GmbH; (ii) Lumen Technologies Belgium SA; (iii) Lumen Technologies Denmark ApS; (iv) Lumen Technologies EMEA Holdings Limited of the UK; (v) Camelot Landing, LLC, of the US; (vi)  CenturyLink Europe B.V, of the Netherlands (together with certain US and trans-Atlantic subsea assets), all ultimately controlled by Lumen Technologies, Inc. of the US, by Colt Technology Services Group Limited (‘Colt'), of the UK.

The Lumen companies and assets included in this transaction constitute substantially all of Lumen's business in Europe, Middle East and Africa which consists of providing telecommunications infrastructure and enterprise services in these regions. Colt provides network services for network intensive sectors and voice services in Asia, Europe, India and the US.

The Commission concluded that the proposed acquisition would raise no competition concerns, given the companies' limited combined market position and vertical relationships between the activities resulting from the proposed transaction. The transaction was examined under the simplified merger review procedure.

More information is available on the Commission's competition website, in the public case register under the case number M.11144.

(For more information: Arianna Podesta – Tel.: +32 2 298 70 24; Marta Pérez-Cejuela – Tel.: +32 229 63770)

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