Cases C-106/09P and C-107/09P European Commission v. Government of Gibraltar and the United Kingdom

AuthorOlivier Van den Broeke
Published date01 September 2012
Date01 September 2012
DOIhttp://doi.org/10.1177/1023263X1201900309
Subject MatterCase Note
19 MJ 3 (2012) 447
CASE NOTE
Cases C-106/09P and C-107/09P European Commission v. Government of Gibraltar
and the United Kingdom
Olivier Van den Broeke*
§1. IN T RO DUCT ION
Article107 TFEU provides that a id granted by a Member State ‘in any form whatsoever’
which distorts compet ition by favouring certai n undertak ings or the production of
certain goods sha ll be incompatible with t he internal market.  is mea ns that di rect
taxation, alt hough falli ng within t he ambit of Member States’  scal autonomy, cannot
escape scrutiny i n light of the EU rules on st ate aid. Indeed, it is irrelev ant whether the
measure is a tax me asure, since Ar ticle107 TFEU applies to aid mea sures ‘in a ny form
whatsoever’.
To be termed aid, four cumulative criteria must be ful lled.1 e main criterion
identi ed by the Commission was the selectivit y or speci city criterion.  is implied
that a measure is speci  c or selective if it ‘favours certa in undertaki ngs or the production
of certain good s’, unless it can be justi ed by ‘t he nat ure or gene ral sche me of t he sy stem ’.
erefore, the common tax system needed to be as certained in order to deter mine
whether the measu re provided an exception to the application of the ta x system in favour
of certain undertakings.
Over the years, this de nition of selectivity has la rgely survived. However, there
have been some signi cant developments in a ssessing the selectivity of a t ax measure.2
In analysing t he selectivity of a me asure it is now necessary to a scertain t he relevant
reference fra mework  rst. In this light, it must be determined wh ich undertakings are
* Student-researcher 2011–2012, Research Group Bu siness & Law, Law Faculty, Antwer p University.
1 Notice of the Comm ission on the applicat ion of the state aid ru les to measures rel ating to direc t
business ta xation, [1998] OJ C 384/3. A report on its implementation has a lso been issued, namely in
2004: COM (200 4)  nal 434.
2 A er the 1998 notice, t he material sele ctivity a ssessment has evolved (sig ni cantly) in the CJEU’s
judicature.  e main evolution can be fou nd chronologica lly in the follow ing cases: C ase C-143/99
Adria Wien Pipe line [2001] ECR I-8365; Case C-4 87/09P British Aggregates Association [20 08] E CR
I-10505; Case C-279/08P Dutch Nox [2008] ECR II-591; and the Cases C-106/09P and C-107/09P
Commission v. Gover nment of Gibraltar.

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