Engie/ Luxembourg vs European Union: JUDGMENT
Case Information
- Court: General Court of the European Union (Second Chamber, Extended Composition)
- Case No: Joined Cases T-516/18 and T-525/18
- Applicant: Grand Duchy of Luxembourg and ENGIE
- Defendant: European Commission
- Judgment Date: 12 May 2021 (rectified 16 September 2021)
This case involves the European Commission’s ruling that Luxembourg’s tax rulingsA tax ruling is a formal decision provided by a tax authority, clarifying how specific tax laws and regulations apply to an individual taxpayer or a corporate entity in particular circumstances. Often sought before a significant financial transaction or investment, tax rulings offer legal certainty by outlining the tax implications and obligations in advance. Such rulings are pivotal for multinational... for ENGIE constituted unlawful state aidState Aid refers to financial assistance provided by public bodies, typically governments, which can selectively benefit certain businesses or industries. This concept is critical in European Union (EU) law, where such support can distort competition and trade within the single market. State Aid, regulated under EU law, aims to ensure fair competition and prevent Member States from favouring local businesses..., creating tax advantages that contravened the competitive balance required under EU law.