JUDGMENT OF THE GENERAL COURT (Fifth Chamber)
29
September 2011
In Case T 442/07,
Ryanair Ltd, established
in Dublin (Ireland), represented by E. Vahida and I.-G.
Metaxas-Maragkidis, lawyers, applicant,
v
European Commission, represented by L. Flynn,
S. Noë and E. Righini, acting as Agents, defendant,
supported
by
Air One SpA, established in Chieti (Italy), represented by M.
Merola, C. Santacroce and G. Belotti, lawyers,
intervener,
APPLICATION for a declaration that the Commission has
failed to act in unlawfully failing to define its position on the
applicant’s complaints concerning, first, aid allegedly granted by the
Italian Republic to Alitalia, Air One and Meridiana and, second, an
alleged infringement of competition law,
THE GENERAL COURT (Fifth Chamber),
composed of S. Papasavvas, President, V.
Vadapalas (Rapporteur) and K. O’Higgins, Judges,
Registrar: N. Rosner,
Administrator,
having regard to the written procedure and further to
the hearing on 17 February 2011,
gives the following
Judgment
Background to the dispute
1 On 3 November
2005, the applicant, Ryanair Ltd, sent a letter to the Commission of the
European Communities, the subject-matter of which was a ‘complaint against
the Italian Government for State aid to Italian Airlines’ (‘the complaint
of 3 November 2005’).
2 In that complaint, the applicant referred to
the airlines Volare and Alitalia. The applicant claimed, inter alia, that
the Italian Government had written off massive amounts of debt accumulated
by Alitalia, financed redundancy payments owed by Italian airlines and
granted rebates on fuel costs, through the imposition of charges on all
airlines operating in Italy. It also complained of the award to Alitalia
of a further amount of EUR 35 million by way of compensation for loss
caused by the attacks of 11 September 2001 in the United States. The
applicant also called on the Commission Directorate-General for Energy and
Transport (‘DG TREN’) to examine the Italian Government’s continuing
preferential treatment of Alitalia and, in particular, the compensation
granted following the attacks of 11 September 2001 (‘the 9/11
compensation’) and the reduction in airport charges. In that complaint,
the applicant also drew attention to the fact that it was still awaiting
publication of the Commission Decision of 7 June 2005 on Alitalia's
industrial restructuring plan, which was finally published on 8 March 2006
(OJ 2006 L 69, p. 1; ‘the decision of 7 June 2005’).
3 By letter of 23
November 2005, the Commission, through the Director-General of DG TREN,
acknowledged receipt of the complaint of 3 November 2005, which was
registered on 4 November 2005. In that letter, the Commission addressed
only the issue of State aid allegedly granted to Volare.
4 By letter of
13 December 2005, the subject-matter of which was a ‘complaint against the
Italian Government for further State aid to Alitalia’, the applicant drew
the Commission’s attention to the fact that the letter of 23 November
2005, by which the Commission acknowledged receipt of the applicant’s
complaint of 3 November 2005, had failed to address the issue of the State
aid allegedly granted to Alitalia. The applicant therefore reiterated its
complaint concerning the 9/11 compensation and the reduction in airport
charges. It also complained about the conditions of the transfer of
Alitalia Servizi to Fintecna. The applicant again asked when the decision
of 7 June 2005 would be published.
5 On 16 June 2006, the applicant
sent a letter to the Commission addressed to the Director of Air Transport
within DG TREN, the subject-matter of which was ‘Italian public service
obligations’ (‘PSOs’). In that letter, the applicant criticised, in
particular, the fact that it was clear from press cuttings that the
airlines Air One and Meridiana had taken on 100 Sardinian employees of
Alitalia. The applicant expressly requested that that issue be added to
its previous complaint. By letter of 26 July 2006, the Director of Air
Transport within DG TREN informed the applicant that a formal inquiry had
been opened in connection with the PSOs in respect of Sardinia, in
accordance with Article 4(3) of Council Regulation (EEC) No 2408/92 of 23
July 1992 on access for Community air carriers to intra-Community air
routes (OJ 1992 L 240, p. 8). With regard to the question of the transfer
of the 100 Sardinian employees of Alitalia (‘the transfer of the 100
Alitalia employees’), the Director for Air Transport requested the
applicant to provide further information, telling it that he would, in the
meantime, ask his colleagues in Unit A 4, ‘Internal Market and
Competition’, to take the matter up with the Italian authorities.
6 By
letter of 14 August 2006, the applicant acknowledged receipt of the letter
of 26 July 2006 and stated that it did not have any more specific
information regarding the transfer of the 100 Alitalia employees.
7 On
10 November and 22 December 2006, the applicant sent the Commission two
letters concerning ‘PSOs on routes to Sardinia’ and ‘Recent News from
Italy and Greece’, respectively. In the first letter, it stressed the
importance of the Commission’s investigation into the introduction of PSO
routes. In the second, the applicant reiterated its concerns about the way
in which airport policy was developing in Italy.
8 On 2 August 2007,
having received no response to its complaint of 3 November 2005, the
applicant sent a letter of formal notice to the Commission, by which it
formally called on it to act under Article 232 EC (‘the letter of formal
notice’). In that letter, the applicant listed the letters it had sent to
the Commission and the measures which it had complained of as constituting
State aid. In addition, it requested the Commission to follow the
procedures concerning the review of its complaint under Council Regulation
(EC) No 659/1999 of 22 March 1999 laying down detailed rules for the
application of Article 88 [EC] (OJ 1999 L 83, p. 1), Council Regulation
(EC) No 1/2003 of 16 December 2002 on the implementation of the rules on
competition laid down in Articles 81 and 82 of the Treaty (OJ 2003 L 1, p.
1) and Commission Regulation (EC) No 773/2004 of 7 April 2004 relating to
the conduct of proceedings by the Commission pursuant to Articles 81 and
82 of the EC Treaty (OJ 2004 L 123, p. 18).
9 By letter of 7 August
2007, the Commission acknowledged receipt of the letter of formal notice
and stated that that letter had been passed to DG
TREN.
Procedure and forms of order sought
10 By
application lodged at the Registry of the Court on 30 November 2007, the
applicant brought the present action.
11 By document lodged at the
Registry of the Court on 25 March 2008, Air One sought leave to intervene
in the present case in partial support of the form of order sought by the
Commission. By order of 14 September 2009 the President of the Sixth
Chamber granted leave to intervene. By letter of 26 October 2009, Air One
informed the Court that it would not submit a statement in intervention
but that it reserved the right to put forward its arguments, should it
deem appropriate, at the hearing. By letter of 8 February 2011, however,
Air One informed the Court that it would not attend the hearing.
12
Following a change in the composition of the Chambers of the General
Court, the Judge-Rapporteur was assigned to the Fifth Chamber, to which
the present case was consequently allocated.
13 By way of measures of
organisation of procedure, as provided for in Article 64 of its Rules of
Procedure, the Court (Fifth Chamber), on 5 January 2011, put questions to
the parties, to which the latter replied within the prescribed
period.
14 The parties presented oral argument and replied to the
questions put by the Court at the hearing on 17 February 2011.
15 The
applicant claims that the Court should:
– declare, pursuant to Article
232 EC, that the Commission has unlawfully failed to define its position
on the complaints of 3 November and 13 December 2005 and of 16 June and 10
November 2006;
– order the Commission to pay all the costs, including
those incurred by the applicant in the proceedings, even if, after the
action is brought, the Commission adopts measures which, in the opinion of
the Court, render the action devoid of purpose or if the Court dismisses
the application as inadmissible;
– adopt any measure which the Court
may deem appropriate.
16 The Commission claims that the Court
should:
– dismiss the action;
– order the applicant to pay the
costs.
17 By letter of 15 April 2008, the applicant requested that the
Court adopt measures of organisation of procedure seeking production of
certain documents referred to by the Commission in the defence.
18 In
its observations on that letter, lodged at the Court Registry on 30 April
2008, the Commission contended that the Court should reject the
applicant’s request for measures of organisation of
procedure.
Law
19 As a preliminary point, the Court
notes that in its action the applicant raises, in essence, seven pleas in
law alleging failure of the Commission to act (i) in regard to the
transfer of the 100 Alitalia employees, (ii) in regard to the conditions
surrounding the transfer of Alitalia Servizi to Fintecna, (iii) in regard
to the public financing of Alitalia’s redundancy payments and the failure
of the Italian State to obtain the payment of debts owed by Alitalia to
Italian airports, (iv) in regard to the 9/11 compensation, (v) in regard
to the rebates on fuel costs granted to Italian airlines and to the
reductions in airport charges at Italian hub airports, from which
Alitalia, in particular, is claimed to have benefited, (vi) in regard to
the restrictions on the activities of the applicant and other non-Italian
airlines at regional airports and (vii) in regard to an infringement of
competition law.
20 However, by letter of 28 January 2011, confirmed at
the hearing, the applicant withdrew its second and seventh pleas
concerning the conditions surrounding the transfer of Alitalia Servizi to
Fintecna and the infringement of competition law, of which the Court took
formal note.
The plea concerning failure to act with regard to
the transfer of the 100 Alitalia employees
21 The Commission
argues that a prerequisite for bringing an action for failure to act is
that an applicant should have lodged a complaint on the matter concerned –
which is not the case in this instance. It questions whether, in fact, the
few lines inserted by the applicant in its letter of 16 June 2006 may
reasonably be regarded as a complaint. The Commission also maintains that
this plea should be declared inadmissible in view of the Court’s case-law,
by virtue of which an action for failure to act is admissible only if the
institution concerned has first been called on to act through a formal
notice. It submits that, although the letter of formal notice did in fact
refer to the issue of the transfer of the 100 Alitalia employees, the
applicant’s formal and explicit request to act referred to its complaint
of 3 November 2005, which did not cover that issue at all. The letter of
16 June 2006, which the applicant now considers to constitute a complaint,
is mentioned only as one of the further letters in which the applicant
‘kept the Commission updated and repeatedly requested the Commission to
act’. Since it is not sufficiently clear and precise to enable the
Commission to ascertain in specific terms the content of the decision
which it is being asked to adopt, the letter of formal notice cannot be
regarded as formal notice for the purposes of Article 232 EC so far as the
issue of the transfer of the 100 Alitalia employees is concerned.
22 In
that regard, the Court recalls that, under the second paragraph of Article
232 EC, an action for failure to act is admissible only if the institution
concerned has first been called upon to act. Giving the institution formal
notice is an essential procedural requirement the effects of which are,
firstly, to cause the two-month period within which the institution is
required to define its position to begin to run and, secondly, to delimit
any action that might be brought should the institution fail to define its
position. Whilst there is no particular requirement as to form, the notice
must be sufficiently clear and precise to enable the Commission to
ascertain in specific terms the content of the decision which it is being
asked to adopt and must make clear that its purpose is to compel the
Commission to state its position (Case T 17/96 TF1 v Commission [1999] ECR II 1757, paragraph 41).
23 The Court holds that the
letter of formal notice, which expressly refers to Article 232 EC, meets
all the abovementioned requirements and may be regarded as a letter of
formal notice for the purposes of Article 232 EC so far as the issue of
the transfer of the 100 Alitalia employees is concerned.
24 Indeed, the
applicant made clear that it had lodged a complaint on 3 November 2005 and
had sent a number of letters to the Commission to keep it updated and to
request it to act. Having made a point of mentioning all the letters it
had sent the Commission, the applicant set out a full list of the measures
about which it believed it had complained in those letters and which, in
its view, constituted unlawful State aid. One of the measures mentioned
was the transfer of the 100 Alitalia employees, regarding which matter the
applicant expressly referred the Commission to its letter of 16 June 2006.
The applicant also mentioned that Article 88 EC and Articles 10(1) and
13(1) of Regulation No 659/1999 required the Commission to conduct a
diligent and impartial examination of a complaint alleging there to be aid
incompatible with the common market. It stated that the Commission was
required to adopt a decision declaring (i) that the State measures in
question did not amount to aid within the meaning of Article 87(1) EC,
(ii) that those measures were to be classified as aid within the meaning
of Article 87(1) EC but were compatible with the common market under
Article 87(2) and (3) EC, or (iii) that the procedure provided for in
Article 88(2) EC had to be initiated. Finally, the applicant alerted the
Commission to the fact that the formal notice constituted a step
preliminary to proceedings against it under Article 232 EC for failure to
act. It indicated to the Commission that if, within two months of receipt
of the formal notice, the Commission had not defined its position, the
applicant would promptly bring an action before the Court to have the
infringement of the EC Treaty established.
25 Having regard to the
content of the letter of formal notice, that letter must be held to
constitute ‘formal notice’ for the purposes of Article 232 EC, as it
unequivocally calls on the Commission to act with regard to all the
measures set out. First, it enabled the Commission to determine the
specific measures that it was called upon to take – namely to investigate
those measures and adopt a decision. Second, its purpose was to compel the
Commission to define its position on the measures complained of.
Accordingly, the Commission could not have been unaware that, by sending
the letter of formal notice, the applicant intended to bring proceedings
for failure to act under Article 232 of the Treaty with regard to all
those measures, should the Commission remain silent for two months
following receipt of that letter.
26 Accordingly, the plea alleging
failure to act as regards the transfer of the 100 Alitalia employees must
be declared admissible.
27 Since the question whether the Commission
was under a duty to act in respect of those various measures is not a
condition for the admissibility of the action for failure to act, but a
question which must be examined on the merits, it falls to be determined
in the present case whether, as the applicant maintains, the Commission
unlawfully failed to take any action with regard to the transfer of the
100 Alitalia employees, mentioned in the letter of 16 June 2006.
28 In
that regard, it should be recalled that it is settled case-law that, in
order to rule on the substance of a claim for a declaration that the
Commission has failed to act, it is necessary to determine whether, at the
time when the Commission was formally called upon to define its position
within the meaning of Article 232 EC, it was under a duty to act (orders
in Case T 126/95 Dumez v Commission [1995] ECR II 2863,
paragraph 44, and in Case T 286/97 Goldstein v Commission [1998] ECR II 2629, paragraph 24, and judgment in Case T 95/96 Gestevisión Telecinco v Commission [1998] ECR II 3407,
paragraph 71).
29 In the matter of State aid, the situations in which
the Commission is required to act in respect of unlawful aid are governed
by Regulation No 659/1999. Article 10(1) of that regulation provides:
‘[w]here the Commission has in its possession information from whatever
source regarding alleged unlawful aid, it shall examine that information
without delay’. Article 20(2) of the same regulation provides: ‘[a]ny
interested party may inform the Commission of any alleged unlawful aid and
any alleged misuse of aid’. That provision also states that ‘[w]here the
Commission considers that on the basis of the information in its
possession there are insufficient grounds for taking a view on the case,
it shall inform the interested party thereof’.
30 Concerning the manner
in which the Commission is required to act under Articles 10, 13 and 20 of
Regulation No 659/1999, it should be recalled that, at paragraphs 37 to 40
of its judgment in Case C 521/06 P Athinaïki Techniki v Commission [2008] ECR I 5829, the Court of Justice held:
‘37. …
Article 10(1) and the first sentence of Article 20(2) of Regulation No
659/1999 grant to [interested parties] the right to set in motion the
preliminary examination stage provided for in Article 88(3) EC, by sending
information regarding any allegedly unlawful aid to the Commission, which
… is then obliged to examine, without delay, the possible existence of aid
and its compatibility with the common market.
38. Although the parties
concerned cannot rely on rights of the defence for that procedure, they
do, however, have the right to be associated with it in an adequate manner
taking into account the circumstances of the case at issue …
39. Such
an association with that procedure must mean that, where the Commission
informs the interested parties, in accordance with Article 20(2) of
Regulation No 659/1999, that there are insufficient grounds for taking a
view on the case, it is required … to allow the interested parties to
submit additional comments within a reasonable period.
40. Once those
comments have been lodged, or the reasonable period has expired, Article
13(1) of Regulation No 659/1999 obliges the Commission to close the
preliminary examination stage by adopting a decision pursuant to Article
4(2), (3) or (4) of that regulation, that is to say, a decision stating
that aid does not exist; raising no objections, or initiating the formal
investigation procedure. Thus, the Commission is not authorised to persist
in its failure to act during the preliminary examination stage. Once that
stage of the procedure has been completed the Commission is bound either
to initiate [the next stage of the investigation], or to adopt a
definitive decision [to take no further action on] the complaint …’
31
In the present case, it is therefore appropriate to determine whether, by
the letter of 16 June 2006, the Commission was seised of a complaint or
put in possession of information regarding alleged unlawful aid.
32 The
Commission denies that the letter of 16 June 2006 is a complaint on the
grounds, inter alia, that the applicant did not use the standard form,
made available to interested parties, for reporting allegedly unlawful
State aid, and that the letter of 16 June 2006 contains no indication that
it was meant to be taken as a complaint. It also denies that it was under
a duty to act under Article 10(1) of Regulation No 659/1999, since the
letter contained no information regarding unlawful aid within the meaning
of that provision.
33 In that regard, it is to be noted at the outset
that, unlike the competition rules laid down in Articles 81 EC and 82 EC,
in relation to which the lodging of a complaint is regulated by
Regulations Nos 1/2003 and 773/2004, in the case of State aid no specific
formal requirement attaches to the lodging of a complaint.
34
Concerning the Commission’s argument that the letter of 16 June 2006 is
not a complaint because the applicant has not used the standard form, the
Court considers it to be unfounded. As the applicant correctly maintains,
use of that form is not required by any rule of European Union law and
consequently cannot be set up as a condition of ‘admissibility’ for
lodging a complaint concerning State aid.
35 As to the Commission’s
argument that the letter of 16 June 2006 contained no indication that it
was meant to constitute a complaint concerning the transfer of the 100
Alitalia employees, it must be rejected. Indeed, although that letter was
headed ‘PSOs’, the applicant clearly referred therein to that transfer as
State aid and expressly requested that the Commission add that matter to
its previous complaint. The applicant also specifically requested DG TREN
to conduct an investigation in order to determine what advantages might
have been granted to Air One and Meridiana to convince them to take on the
Alitalia employees. It should also be noted that the applicant had
reiterated, in its letter of 14 August 2006, that that transfer could be
regarded as State aid because it saved ‘Alitalia from having to pay
redundancy to these employees’. Contrary to the Commission’s contention,
the purpose of the letter of 16 June 2006 was clearly to bring a complaint
before the Commission concerning the transfer of the 100 Alitalia
employees.
36 In any event, irrespective of whether or not that
complaint was founded, the Court considers that, when it received the
letter of 16 June 2006, in which the transfer of the 100 Alitalia
employees was clearly identified as State aid (an allegation repeated in
the letter of 14 August 2006), the Commission was put in possession of
‘information … regarding alleged unlawful aid’ within the meaning of
Article 10(1) of Regulation No 659/1999. Contrary to the Commission’s
argument, that provision does not appear open to being interpreted as
meaning that the Commission must receive detailed information in order to
be regarded as having in its possession information regarding alleged
unlawful aid – as is borne out by the wording of Article 20(2) of
Regulation No 659/1999. That provision states that ‘[a]ny interested party
may inform the Commission of any alleged unlawful aid’. Once it is in
possession of the information, the Commission must, if it considers that
‘there are insufficient grounds for taking a view on the case’, inform the
interested party that that is the case. It is thus apparent that the
European Union legislature does not require that interested parties
provide the Commission with detailed information in order for the
Commission to be regarded as having in its possession information giving
grounds for an examination to be undertaken.
37 Having regard to the
contents of the letter of 16 June 2006, the Court concludes that a
complaint, or, at the very least, information regarding alleged unlawful
aid, was brought before the Commission. Therefore, according to the
judgment cited at paragraph 30 above, the Commission was required to act
in accordance with Article 10(1) and the first sentence of Article 20(2)
of Regulation No 659/1999, by setting in motion the preliminary
examination stage and examining the information without delay. That
examination should have led the Commission, according to the same
judgment, either to inform the applicant that there were insufficient
grounds for taking a view on the case or, in any event, to adopt a
decision under Article 4(2), (3) or (4) of Regulation No 659/1999.
38
In this case, it is common ground that the Commission neither informed the
applicant that there were insufficient grounds for taking a view on the
case nor adopted a decision under Article 4(2), (3) or (4) of Regulation
No 659/1999, although it was required to do so. In the case of the
transfer of the 100 Alitalia employees, the Commission had thus failed to
act as of 2 October 2007, that date being two months after it was called
on to act in that respect in the letter of formal notice.
39
Consequently, the plea alleging failure to act with regard to that
transfer must be held to be founded.
The plea alleging failure
to act with regard to (i) the public financing of Alitalia’s redundancy
payments and (ii) the failure of the Italian State to obtain the payment
of debts owed by Alitalia to Italian airports
40 The Commission
disputes that the applicant lodged a complaint in respect of these
measures. In any event, it submits that this plea should be declared
inadmissible for the same reasons as those set out at paragraph 21 above,
that is to say, that the letter of formal notice cannot be taken to be
‘formal notice’ for the purposes of Article 232 EC.
41 As regards the
argument that the application is inadmissible in so far as it concerns the
Commission’s failure to act with regard to the public financing of
Alitalia’s redundancy payments and the inability of the Italian State to
obtain payment of the debts owed by Alitalia to Italian airports, the
Court observes that it was held at paragraph 25 above that, in view of the
contents of the letter of formal notice, that letter constituted ‘formal
notice’ for the purposes of Article 232 EC, as it unequivocally called on
the Commission to act with regard to all the measures listed in the
letter, which included the issue of the public financing of the redundancy
payments and that of Alitalia’s failure to pay the debts owed to Italian
airports.
42 Accordingly, the plea alleging failure to act with regard
to those two measures must be declared admissible.
43 It should
therefore be determined in this instance whether, as the applicant
maintains, the Commission unlawfully failed to act with regard to the
public financing of Alitalia’s redundancy payments and to the failure of
the Italian State to obtain the payment of debts owed by Alitalia to
Italian airports.
44 To that end, it is appropriate to determine
whether, at the time when the Commission was formally called upon to
define its position within the meaning of Article 232 EC, it was under a
duty to act (see paragraph 28 above).
45 It must be held, firstly, that
the Commission is correct in maintaining that no complaint exists so far
as those two measures are concerned and, secondly, that nothing in the
various letters sent by the applicant to the Commission can be described
as ‘information… regarding alleged unlawful aid’ within the meaning of
Article 10(1) of Regulation No 659/1999.
46 Indeed, the complaint of 3
November 2005, which mentioned the financing of redundancy payments owed
by airlines in general, the letter of 13 December 2005, which mentioned
only the reduction in airport charges to support Alitalia and the transfer
of Alitalia Servizi to Fintecna, and the letters of 16 June, 10 November
and 22 December 2006, gave no indication that Alitalia had benefited from
those measures. As the Commission notes, the only mention of the financing
of redundancy payments owed by Alitalia – but not of debts to airports –
was in a letter from the applicant dated 5 April 2006, which stated that
‘the Italian Government [had] imposed a national tax on all airlines to
finance [EUR] 440 million in redundancy payments to Alitalia’. However,
such a statement cannot be regarded as a complaint, or as information
within the meaning of Article 10(1) of Regulation No 659/1999. Although,
as is clear from paragraph 36 above, the European Union legislature does
not require interested parties to provide the Commission with detailed
information in order for the Commission to be regarded as having in its
possession information giving grounds for an examination to be undertaken,
the interested party must, at the very least, specify that the measure
complained of is alleged to be unlawful aid. However, that is not the case
here. It was only in the letter of formal notice that the applicant
claimed, for the first time, that Alitalia had benefited from those
measures and that measures of that kind constituted unlawful aid.
47 It
must therefore be concluded that, at the time when the Commission was
given formal notice for the purposes of Article 232 EC, it was under no
duty to act; consequently, in accordance with the case-law cited at
paragraph 28 above, no finding of failure to act can be made against it so
far as the public financing of Alitalia’s redundancy payments and the
failure of the Italian State to obtain payment of debts owed by Alitalia
to Italian airports are concerned.
48 Accordingly, the plea alleging a
failure to act with regard to those measures must be rejected as
unfounded.
The plea alleging failure to act with regard to the
9/11 compensation
49 It should be noted at the outset that the
Commission does not dispute that the complaint of 3 November 2003 amounts
to a ‘complaint’ with regard to the 9/11 compensation; nor does it dispute
that that complaint, which was reiterated in the applicant’s letter of 13
December 2005, formed the subject-matter of a preliminary examination by
the Commission. Indeed, it maintains that it acted upon the complaint by
questioning the Italian authorities. The Commission argues, however, that
the Italian legislation does not constitute a State aid measure, since
there has been no transfer of State resources. It adds that the existence
or otherwise of legislation which affords the State an option, but which
has never been applied, is not a matter for State aid control.
50 In
that regard, it should be observed that, as is apparent from the judgment
cited at paragraph 30 above, Article 13 of Regulation No 659/1999 obliges
the Commission to close the preliminary examination stage relating to
potentially unlawful aid by adopting a decision pursuant to Article 4(2),
(3) or (4) of that regulation.
51 Accordingly, even though the
Commission took the view that the Italian legislation did not constitute a
State aid measure and that the existence or otherwise of legislation which
afforded the State an option, but which was not applied automatically, was
not a matter for State aid control, it was required to adopt a decision
under Article 4(2), (3) or (4) of Regulation No 659/1999 in order to close
the preliminary examination stage.
52 Since it is common ground that
the Commission did not adopt a decision in the case in point, it must be
held that, in the case of the 9/11 compensation, it had failed to act as
of 2 October 2007, that date being two months after it was called on to
act in that respect in the letter of formal notice.
53 Consequently,
the plea alleging failure to act with regard to the 9/11 compensation must
be held to be founded.
The plea alleging failure to act with
regard to (i) the rebates on fuel costs granted to Italian airlines and
(ii) the reductions in airport charges at Italian hub airports, from which
Alitalia, in particular, is claimed to have benefited
54 The
Commission denies that it was obliged to take action in respect of these
measures since the applicant did not lodge a complaint about them. In any
event, it maintains that this plea should be declared inadmissible on the
ground of lis pendens since the question of rebates on fuel costs
and reductions in airport charges was also raised in Case T 441/07, Ryanair v Commission, in which proceedings were commenced
prior to proceedings in this case. At the hearing, the Commission claimed
that the fact that the applicant had discontinued its action in Case T
441/07, Ryanair v Commission, (order of the President of the
Fifth Chamber of the Court of 5 October 2010 removing the case from the
register in Case T 441/07 Ryanair v Commission, not
published in the ECR) should none the less not lead the Court to declare
the present plea admissible.
55 The objection of lis pendens raised by the Commission must be rejected at the outset. Contrary to the
Commission’s contention at the hearing, that objection has become devoid
of purpose since the applicant discontinued its action in Case T 441/07
(see, in that regard, Joined Cases T 254/00, T 270/00 and T 277/00 Hôtel Cipriani and Others v Commission [2008] ECR II 3269,
paragraph 43).
56 Accordingly, this plea must be declared
admissible.
57 It should therefore be determined in this instance
whether, as the applicant maintains, the Commission unlawfully failed to
act with regard to those measures.
58 To that end, it is appropriate to
determine whether, at the time when the Commission was formally called
upon to define its position within the meaning of Article 232 EC, it was
under a duty to act (see paragraph 28 above).
59 The Commission argues
that a necessary pre-condition for bringing an action for failure to act
with regard to these measures was the lodging of a complaint by the
applicant, which did not occur in this instance. The Commission questions
whether the one-line allegation in the complaint of 3 November 2005 that
there were rebates on fuel costs and reductions in airport charges may
reasonably be regarded as a ‘complaint’.
60 In the defence, the
Commission contended that in any event it acted with regard to the
substance of that complaint. It stated, at point 42 of the defence, that
it had received the complaint of 3 November 2005 on that same date. It
made it clear that it had examined it and sent a letter to the Italian
authorities on 13 February 2006, requesting them to send information on
the new charging system applicable at all Italian airports. Therefore, it
submitted that a preliminary examination began immediately. It added, at
point 46 of the defence, that, following the applicant’s first letter,
several exchanges of correspondence had taken place between it and the
Italian authorities in order for the Commission to obtain all the
information necessary to take a decision on whether or not to open an
investigative procedure. It argues that it is settled case-law that the
fact that the national authorities were questioned proves that ‘the
Commission did not remain inactive after receiving the applicant’s
complaint’. With regard to the duration of the preliminary investigation,
the Commission submitted that the 21-month period that elapsed between the
complaint of 3 November 2005 and the letter of formal notice was not
excessive in view of the particular circumstances of the case, its
context, the various procedural stages, the complexity of the case and its
importance for the various parties involved.
61 However, in its reply
to a written question of the Court and at the hearing, the Commission
sought to clarify the issues of rebates on fuel costs and airport charges
which, on its own admission, had been treated ambiguously in the defence.
It confirmed that its principal line of defence, with regard to those
measures, was that set out in point 41 of the defence – namely that, in
the absence of a complaint concerning those measures, it was under no duty
to act. In addition, it stated in essence that point 42 of the defence is
not to be understood as meaning that it had treated the applicant’s
complaint of 3 November 2005 as a complaint giving a right to an
investigation. The Commission submits that point 42 merely means that it
took action in the framework of a parallel procedure, initiated after
complaints were lodged by complainants other than the applicant, during
which there was an exchange of correspondence with the Italian
authorities. At the hearing, the Commission stated that it was regrettable
that it had not mentioned the parallel procedure but maintained that that
did not make any difference in this particular case, since, given the
contents of the complaint of 3 November 2005, it was not required to
act.
62 In that regard, the Court notes that, with regard to the
question of rebates on fuel costs, the Commission is correct in
maintaining that no complaint exists. Moreover, nothing in the various
letters sent by the applicant to the Commission can be regarded as
‘information … regarding alleged unlawful aid’ within the meaning of
Article 10(1) of Regulation No 659/1999.
63 While the complaint of 3
November 2005 merely mentioned in general terms that the Italian
Government had written off very large amounts of accumulated debts for
Alitalia, financed redundancy payments owed by Italian airlines and
granted rebates on fuel costs through the imposition of taxes on all
airlines operating in Italy, the applicant’s subsequent letters made no
mention at all of the issue of rebates from which Alitalia, in particular,
was said to have benefited. The single sentence in the complaint of 3
November cannot be regarded either as a ‘complaint’ or as information
within the meaning of Article 10(1) of Regulation No 659/1999, as the
applicant gave no indication that those rebates were to be regarded as
unlawful aid. It was only in the letter of formal notice that the
applicant claimed, for the first time, that those measures were of benefit
to Alitalia and that they constituted State aid.
64 It must therefore
be held that, at the time when the Commission was formally called upon to
define its position within the meaning of Article 232 EC, it was under no
duty to act with regard to the rebates on fuel costs; consequently, in
accordance with the case-law cited at paragraph 28 above, no finding of
failure to act can be made against it in that regard.
65 Concerning the
question of the reduction in airport charges from which Alitalia is
alleged to have benefited, the Commission’s argument that no complaint was
lodged on that matter must be rejected.
66 Firstly, in the complaint of
3 November 2005, the applicant requested that DG TREN examine the Italian
Government’s favourable treatment of Alitalia, and in particular the
reduction in airport charges. Secondly, in the letter of 13 December 2005,
the applicant drew the Commission’s attention to the fact that the letter
of 23 November 2005, in which the Commission acknowledged receipt of the
complaint of 3 November 2005, had failed to address the question of the
State aid allegedly granted to Alitalia, including, in particular, the
reduction in airport charges. In its letter of 13 December 2005, the
applicant therefore repeated its complaint concerning the reduction of
airport charges to support Alitalia. Contrary to the Commission’s
contention, the letters of 3 November and 13 December 2005 must therefore
be found clearly to have been intended to bring a complaint before the
Commission concerning reductions in airport charges at hub airports, from
which Alitalia, in particular, was claimed to have benefited.
67 In any
event, regardless of whether or not that complaint was well founded, the
Court considers that the Commission, upon receiving those two letters, was
put in possession of ‘information … regarding alleged unlawful aid’ within
the meaning of Article 10(1) of Regulation No 659/1999. Therefore,
according to the judgment cited at paragraph 30 above, the Commission was
required to act in accordance with Article 10(1) and the first sentence of
Article 20(2) of Regulation No 659/1999, by setting the preliminary
examination stage in motion and examining that information without delay.
That examination should have led the Commission, according to the same
judgment, either to inform the applicant that there were insufficient
grounds for taking a view on the case or, in any event, to adopt a
decision under Article 4(2), (3) or (4) of Regulation No 659/1999.
68
In this instance, the Commission does not deny that it did not undertake
an examination, let alone inform the applicant that there were
insufficient grounds for taking a view on the case or adopt a decision
under Article 4(2), (3) or (4) of Regulation No 659/1999, although it was
required to do so. It had thus failed to act as of 2 October 2007, that
date being two months after it was called on to act by the letter of
formal notice of 2 August 2007.
69 As a consequence, this plea must be
held to be founded in so far as it concerns the reductions in airport
charges at hub airports, from which Alitalia, in particular, is claimed to
have benefited.
The plea alleging failure to act with regard to
the restrictions on the activities of the applicant and other non-Italian
airlines at regional airports
70 The Commission denies that it was
under a duty to act with regard to these restrictions. It maintains, in
substance, that neither the letter of 10 November nor that of 22 December
2006 referred to the restrictions as constituting State aid. In any event,
it maintains that this plea should be declared inadmissible for the same
reasons as those mentioned at paragraph 21 above, namely that the letter
of formal notice cannot be regarded as a letter of formal notice for the
purposes of Article 232 EC.
71 As regards the argument that the action
is inadmissible in so far as it is directed against the Commission’s
failure to act with regard to the restrictions on the activities of the
applicant and other non-Italian airlines at regional airports, the Court
observes that it was held at paragraph 25 above that, in view of the
contents of the letter of formal notice, that letter constituted ‘formal
notice’ for the purposes of Article 232 EC, as it unequivocally called on
the Commission to act with regard to all the measures listed in the
letter, which included those restrictions.
72 Accordingly, this plea
must be declared admissible.
73 It is therefore necessary to ascertain
whether, as the applicant maintains, the Commission unlawfully failed to
act with regard to the restrictions on the activities of the applicant and
other non-Italian airlines at regional airports.
74 To that end, it is
appropriate to examine whether, at the time when the Commission was
formally called upon to define its position within the meaning of Article
232 EC, it was under a duty to act (see paragraph 28 above).
75 It is
quite clear, firstly, that the Commission is correct in maintaining that
there is neither a complaint nor any other material concerning those
restrictions and, secondly, that nothing in the various letters sent by
the applicant to the Commission can be regarded as ‘information …
regarding alleged unlawful aid’ within the meaning of Article 10(1) of
Regulation No 659/1999.
76 It must therefore be concluded that, at the
time when the Commission was given formal notice for the purposes of
Article 232 EC, it was under no duty to act; consequently, in accordance
with the case-law cited at paragraph 28 above, no finding of failure to
act can be made against it so far as the restrictions on the activities of
the applicant and other non-Italian airlines at regional airports are
concerned.
77 It follows that the plea alleging failure to act with
regard to those restrictions must be rejected as unfounded.
78
Accordingly, the claim of failure to act can be upheld only in relation to
the aid allegedly granted by the Italian Republic in respect of the
transfer of the 100 Alitalia employees, the 9/11 compensation and the
reductions in airport charges at hub airports, from which Alitalia, in
particular, is claimed to have benefited, there being no need to adopt the
measures of organisation of procedure requested by the
applicant.
Costs
79 Under the first subparagraph of
Article 87(3) of the Rules of Procedure, where each party succeeds on some
and fails on other heads, the Court may order that costs be shared or that
each party bear its own costs. In the present case, since each of the
parties has failed in part, the Court considers it fair, having regard to
the circumstances of the case, to order each party to bear its own costs.
Furthermore, the intervener must be ordered to bear its own costs pursuant
to the third subparagraph of Article 87(4) of the Rules of
Procedure.
On those grounds,
THE GENERAL COURT (Fifth
Chamber)
hereby:
1. Declares that the Commission of the
European Communities failed to fulfil its obligations under the EC Treaty
by failing to adopt a decision in respect of (i) the transfer of the 100
Alitalia employees, complained of in the letter of 16 June 2006 sent to
the Commission by Ryanair Ltd, (ii) the compensation granted following the
attacks of 11 September, complained of in the letters of 3 November and 13
December 2005 sent to the Commission by Ryanair, and (iii) the reductions
in airport charges at hub airports, from which Alitalia, in particular, is
claimed to have benefited, complained of in those letters of 3 November
and 13 December 2005;
2. Dismisses the action as to the remainder;
3. Orders each of the parties, including Air One SpA, to bear its own
costs.