The CJEU has upheld the EU General Court’s ruling that the European Commission failed to properly investigate whether the Netherlands granted unlawful state aid to lottery and betting operators.
Belgium.- The Court of Justice of the European Union (CJEU) has dismissed an appeal by the Netherlands in a state aid case brought by the European Gaming and Betting Association related to the extension of monopoly licences to betting and lottery operators in 2014.
The ruling upholds the EU General Court’s 2023 decision that the European Commission had failed to properly investigate whether the Netherlands granted unlawful state aid to incumbent operators by extending their monopoly licences without an open tender process.
The EGBA filed a complaint to the European Commission (EC) in 2016, arguing that the lack of an open tender process violated EU state aid rules. However, the EC closed the EGBA’s complaint in 2020 without opening a formal investigation, claiming that no state aid was involved.
The EGBA appealed against that decision to the CJEU in 2021. In 2023, the EU General Court ruled in its favour, annulling the EC’s decision after finding that it had failed to properly investigate the case.
The Netherlands appealed against that ruling, but today’s judgment in Case C-59/24 P dismisses that appeal. The Court confirmed that when investigating state aid complaints, the EC must examine all relevant aspects of a measure and cannot take shortcuts. The Court was not asked, and has not determined, whether unlawful state aid actually occurred, focusing only on the EC’s failure to properly investigate the question.
The EGBA welcomed the ruling. “This is a clear victory for the proper enforcement of EU law. The Court has confirmed what we said all along: the Commission must investigate state aid complaints thoroughly and cannot take shortcuts. While this case dates back to 2014, it remains relevant today. It demonstrates that the Commission must fulfil its responsibilities as guardian of the Treaties – and that there are consequences when it fails to do so,” said Maarten Haijer, Secretary General of EGBA.
He added: “When issuing any type of gambling licence, Member States must always ensure there is a fair, open and competitive process that treats all interested applicants equally, in line with EU law. The Commission is expected to now open a state aid investigation to determine whether the extension of monopoly licences by the Dutch authorities in 2014 involved unlawful state aid.”
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