The Corsica executive council has decided not to include the fine of EUR 86.3 million in the 2021 supplementary budget of the Collectivité de Corse (CDC).
At the end of September, the CDC had been definitively ordered by the Council of State to pay EUR 86.3 million to Corsica Ferries, in compensation for the damage linked to the illegal subsidies of its former competitor SNCM, between 2007 and 2013.
CDC refuses to pay and wants the French State to take its responsibilities. To be continued…
The Administrative Court of Appeal of Marseille condemns the Territorial Collectivity of Corsica to pay Corsica Ferries France the sum of €86.3 million in compensation for the damage it suffered as a result of the illegal subsidy provided by the Collectivity to SNCM.
This subsidy was given for the ferry service provided by SNCM and CMN between the Port of Marseille and Corsica, in the period between July 2007 and December 2013.
On top of the payments for the public service contract, the alliance SNCM/CMN received 40 million per year for the so-called additional service for the transport of passengers during peak periods.
The European Commission considered in 2013, that the financial compensation paid by
Corsica under this additional service were incompatible with the freedom of competition in the internal market. In 2014 the Commission ordered the refund of this illegal subsidy.
After endless legal fights, Corsica Ferries has finally obtained a favourable decision.
SNCM History: Collectivity Of Corsica Sentenced To Pay A 20 Million Provision
Sentenced in 2017 to pay EUR 84 million to the company with the yellow ferries for irregular competition within the framework of the DSP, the Collectivity of Corsica must now pay a provision of EUR 20 million according to the administrative court of appeal of Marseille.
A State subsidy allowed former SNCM to operate two ropax ferries on Marseille – Ajaccio in the high season. This created an unfair competition with Corsica Ferries.
The ‘Collectivité territoriale de Corse (CTC)’ should have reclaimed €220 million from SNCM, which were paid as a subsidy for a service which was not supposed to be subsidised. CTC did not recover this money.
Decision expected in March.
The Marseille Administrative Court of Appeal upheld the judgment of 23 February 2017, recognizing the injury of Corsica Ferries, reports Corse Net Infos (in French).
The subject of the dispute was the aid paid between 2007 and 2013 to the former SNCM and the CMN.
On February 23, 2017, the Bastia Administrative Court had ordered the Collectivité de Corse (CTC) to pay € 84.3 million to Corsica Ferries in compensation for the damage caused by the payment of subsidies. This aid, considered illegal, made it possible to provide an additional service for the transport of passengers during peak periods within the framework of the DSP (Delegation of public service).
Corsica Ferries, then, seized the European Commission and obtained, in April 2016, the cancellation of the DSP.
In a judgment delivered on February 15, the Administrative Court of Appeal of Marseille confirms the payment of indemnities.
Satisfied with the judgment, Pierre Mattei, CEO of Corsica Ferries, sees two mistakes committed by the CTC.
1) Illegal subsidies in 2007.
2) In 2013, when it did nothing to recover the € 220 million in illegal aid received by SNCM that should have paid back.
It will now be a question of precisely assessing this damage. The CTC already announced to accept the verdict.