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EU competition law update (13 March 2025): CJEU State aid ruling on Italian foundry rationalisation programme; AG Rantos on timing of aid deemed 'granted'; merger clearances; antitrust hearings; upcoming dates

Published on: 13 March 2025

Published by a LexisNexis Competition expert
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Article summary

State aid Court of Justice issues judgment concerning Italian national reference regarding payment of financial contributions to undertakings in iron and steel foundries

The Court of Justice delivered its ruling in Joined Cases C- 746/23 Cividale and Flag and C- 747/23 Duferco Italia Holding and Duferco Sertubi, following a national reference from Italy. The referring court sought guidance on whether, amongst other matters, a measure laid down by domestic legislation may amount to ‘aid’ for the purposes and objectives of Articles 107 and 108 TFEU.

Background

Flag Sel (Flag), wholly owned by Cividale SpA (Civdale), owns a foundry in Marcon comprising two separate production units. Flag and Cividale concluded an arrangement addressing employment matters. On 18 June 2004, pursuant to Italian law, Flag applied to the Ministry for Economic Development (MISE) for a financial contribution to support the dismantling of one of those units. Following an investigation, on 14 September 2006 MISE decided it would grant €1,645,000, on condition that the destruction of the production units was verified and that the part of the company responsible for the destruction ceased to exist...

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