The public financing allocated to Deutsche Post AG (DP AG) for the supply of services of general economic interest in the German postal sector does not constitute state aid. Thus ruled the EU Court of Justice, on 2 September, annulling the European Commission’s decision of June 2002 finding that the funds represented illegal state aid ⁽¹⁾. The court corroborated the General Court’s decision of 2008 challenging the method used by the Commission to check the costs of public service obligations (T-266/02).

The Commission accused DP AG of using public funds to implement a policy of selling below cost in the parcel delivery sector, which is open to competition. It brought an action for annulment of the General Court’s decision before the Court of Justice.

The CoJ held that the General Court was correct in ruling that the Commission had not sufficiently demonstrated the advantages gained from this overcompensation, failing inter alia to examine relevant evidence. It adds that the General Court “did not substitute its own method for that of the Commission, but its examination was confined to the judicial review of the contested decision’s legality”. It therefore did not overstep the limits of its competence. The Luxembourg-based court consequently rejected the appeal and confirmed the annulment of the Commission’s decision. The court also rejected the cross-appeals lodged by two of Deutsche Post’s competitors, UPS Europe and Bundesverband Internationaler Express- und Kurierdienste eV, which were the starting point of the Commission’s inquiry.