(Finance) – The European Commission has launched an in-depth investigation to assess whether the public service compensation granted to Corsica Linea and La Méridionale for the provision of maritime transport services to Corsica between 2023 and 2030 is in line with EU public aid rules State.
The Commission’s investigation
In December 2022, France awarded to Corsica Linea and La Méridionale (individually or jointly as Groupement Corsica Linea-La Méridionale) five contracts for the provision of maritime transport services of passengers and cargo between Marseille and five Corsican ports (Ajaccio, Bastia , Propriano, L’Ile Rousse and Porto-Vecchio) for the period 2023-2030. France notified the Commission of compensation to Corsica Linea and La Méridionale of €853.6 million for the provision of these services.
At this stage, based on its preliminary assessment, the Commission considers that additional information is necessary to determine whether the public compensation paid to Corsica Linea and La Méridionale is in line with EU State aid rules, and in particular with the 2012 General Economy Service Interest Framework (“SGEI”).
For this reason the Commission decided to launch an in-depth investigation to evaluate if: the inclusion in the contracts of the transport of towed goods and of road hauliers is justified by a public service need, given the presence on the market of a commercial offer developed by the nearby port, the volume of goods traffic to be transported based on the contracts does not exceed the public service needs identified by the French authorities.
Furthermore, further clarifications are needed to conclude that the contracts comply with EU public procurement rules.
The Commission will now investigate further. The launch of the in-depth investigation provides France and other interested parties with the opportunity to submit their comments. This does not prejudge the outcome of the investigations.
Background
Under EU state aid rules on public service compensation, companies can be compensated for the additional cost of providing a public service, subject to certain criteria. This allows Member States to grant State aid for the provision of public services while ensuring that companies entrusted with these services do not receive overcompensation. This minimizes distortions of competition and ensures efficient use of public resources.