Lawsuits from the fashion retailer Breuninger and the clothing manufacturer Falke against German Corona aid for companies have finally failed. On Friday in Luxembourg, the European Court of Justice (ECJ) confirmed the corresponding judgments of the lower court, the General Court of the European Union. Breuninger and Falke find that the fixed cost aid decided in autumn 2020 distorts competition. (Af. C-124/23 P and C-127/23 P)
The regulation stipulated that companies with sales losses of more than 30 percent during the pandemic could receive financial support. At first this aid was limited to three million euros and was later increased to up to ten million euros. The EU Commission approved the aid in November 2020 and the change in February 2021.
Falke and Breuninger saw themselves at a disadvantageas the regulation was aimed at the entire company and not at individual business areas. They said they were almost completely excluded from the aid. Slumps in individual business areas – such as sales in branches – were not taken into account because there were no losses in online trading.
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However, the EU court did not follow this argument. The two lawsuits were dismissed in December 2022. The companies then turned to the ECJ. However, he found no legal errors in the court’s rulings. (AFP)
