This judgment concerns the interpretation of EU law regarding recovery of unlawful state aid in cases where the aid beneficiary transfers its activities to another company after the recovery decision.The key points of the judgment are:1. When implementing a Commission decision ordering recovery of unlawful state aid, national authorities can order recovery from companies other than the one identified in the Commission’s decision, if there is economic continuity between the original beneficiary and the new company.2. Economic continuity is assessed based on factors like: assets transferred, workforce maintained, transfer price, ownership/shareholders, timing of transfer, and economic logic of the operation.3. National authorities must ensure the rights of defense of companies from whom they seek to recover aid, including the right to challenge recovery decisions before national courts.The judgment is important for Ukraine as it clarifies that:
- Recovery of unlawful state aid can be pursued from companies that continue the economic activity of the original beneficiary
- National authorities have powers to identify such companies when implementing EU recovery decisions
- Companies subject to recovery must have their procedural rights protected
This creates a framework for effective recovery of unlawful state aid that Ukraine may need to implement as part of its EU accession process.
