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EU court rejects Ryanair’s TAP challenge
An EU court has dismissed a challenge by Ryanair to aid granted to Portugal’s TAP airline during the COVID-19 pandemic.
The case centred on the European Commission’s approval of a €1.2 billion loan agreement between Portugal and TAP’s parent company announced in June 2020.
After a challenge by Ryanair, the EU’s General Court annulled the commission’s decision, saying that the EU body had not indicated whether the parent company belonged to a larger business group.
The court, however, suspended the annulment and gave the commission two months to submit a new decision.
‘Appropriate and proportionate’
In July 2021, the commission adopted a new decision, finding that the Portuguese airline’s parent company was eligible for rescue aid.
Ryanair then challenged the 2021 decision, but the court today (5 February) rejected its arguments that the commission’s examination of the issue was incomplete.
“The General Court considers that the commission did not disregard the conditions of eligibility for rescue aid,” the judgment stated.
“The commission was right to consider that the measure met an objective of common interest, and that it was appropriate and proportionate,” the court added.
Gazette Desk
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