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On 12 May 2021, the General Court of the European Union (“GC”) rendered its judgments (T-516/18 and T-525/18) regarding the action brought by Engie group companies and Luxembourg against the final State aid decision of the European Commission (EC) of 20 June 2018 (SA.44888).  The GC concluded on the existence of State aid under article 107 TFEU.

This decision is of importance because it confirms for the first time that the EC can determine the existence of a selective advantage for state aid purposes on the grounds of non-application of a local concept of abuse of law by the local authorities. It remains to be seen whether the judgement will be appealed. Read more in our PwC EU Direct Tax Group newsalert below.

EUDTG Newsalert