A | A look back at the most important judgments of the year

A Union based on the value of the human person and on the rule of law



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2020 marked the 20th anniversary of the proclamation of the Charter of Fundamental Rights of the European Union (the Charter) which, like the Treaty on European Union, expressly refers to the rule of law, one of the values common to the Member States and on which the European Union is founded.

The Charter enshrines, inter alia, the dignity, freedom and equality before the law of all individuals as human beings, workers, citizens or parties to legal proceedings. The 54 articles of the Charter reflect a shift from a Europe of the Communities focused on economic interests to a Europe of the Union founded on the value of the human person.

In 2020, the Court of Justice has, on a number of occasions, interpreted the Charter and the principle of the rule of law, playing a crucial role in the defence of fundamental freedoms, the fight against discrimination and the fair administration of justice.

  • In a reference for a preliminary ruling from an Italian court, the Court of Justice interpreted the Directive on equal treatment in employment and occupation. That directive establishes, in that sphere, the general principle of non-discrimination enshrined in the Charter. Accordingly, the Court of Justice held that homophobic statements constitute discrimination in employment and occupation when they are made by someone who appears to have a decisive influence on an employer’s recruitment policy. National law may provide that an association has the right to bring legal proceedings in order to claim damages even if no injured party can be identified. Judgment of 23 April 2020, Associazione Avvocatura per i diritti LGBTI, C-507/18

  • Legislation passed by the Flemish Region (Belgium) imposed an obligation to stun animals prior to slaughter. With ritual slaughter being affected, Jewish and Muslim associations sought the annulment of that legislation. In a reference for a preliminary ruling by a Belgian court, the Court of Justice held that the legislation at issue, which does not preclude the use of reversible stunning which cannot result in the animal’s death, and which does not hinder the putting into circulation of products of animal origin derived from animals which have undergone ritual slaughter, where those products originate outside the Flemish Region, allows a fair balance to be struck between freedom of religion, guaranteed by the Charter, and animal welfare, as set out in the TFEU (see section ‘Consumer protection’). Judgment of 17 December 2020, Centraal Israëlitisch Consistorie van België and Others, C-336/19

  • In the context of an action for failure to fulfil obligations, the Court of Justice held that the restrictions imposed by Hungary on the financing of civil organisations by persons established outside that Member State do not comply with EU law. In particular, those restrictions run contrary to the obligations on Member States not only in respect of the free movement of capital laid down in the Treaty on the Functioning of the European Union, but also with regard to provisions of the Charter on the right to freedom of association, the right to respect for private and family life, and the right to the protection of personal data (see section ‘The protection of personal data’). Judgment of 18 June 2020, Commission v Hungary (Transparency of associations), C-78/18

  • In another action for failure to fulfil obligations concerning Hungary, the Court of Justice analysed, in the light of the Charter, the national law on higher education. That law made the exercise, in Hungary, of teaching activities leading to a qualification by higher education institutions situated outside the European Economic Area (EEA) subject to the existence of an international treaty between Hungary and the third country in which the institution concerned had its seat and to the requirement that the institution carried out education activities in the State of origin. The Court of Justice pointed out that such conditions are contrary to academic freedom, the freedom to found higher education institutions and the freedom to conduct a business. Judgment of 6 October 2020, Commission v Hungary (Higher education), C-66/18

  • An urgent reference for a preliminary ruling before the Court of Justice concerned the principle of equal treatment between nationals and citizens of the European Economic Area (EEA). The Court of Justice stated that the Charter applies when a Member State (in the present case, Croatia) is required to rule on an extradition request by a third State (Russia) concerning a national of a State of the European Free Trade Association (EFTA), which is a party to the Agreement on the European Economic Area (EEA) (Iceland). Consequently, the Member State that receives an extradition request must verify that that national will not be subject to the death penalty, torture, or other inhuman or degrading treatment or punishment in the third State making the extradition request. Judgment of 2 April 2020, Ruska Federacija, C-897/19 PPU

  • In the context of two urgent references for a preliminary ruling relating to systemic or generalised deficiencies concerning judicial independence in Poland, the Court of Justice held that the execution of a European arrest warrant (EAW) issued by a Polish judicial authority can be refused only if, having regard to the individual situation of the person concerned, the nature of the offence in question and the factual context in which that EAW has been issued, there are substantial grounds for believing that that person will run a real risk of breach of his or her right to a fair trial, guaranteed by the Charter, once he or she is surrendered to those authorities. Judgment of 17 December 2020, Openbaar Ministerie, C-354/20 PPU and Others

  • The Court of Justice declared that two requests for a preliminary ruling concerning Polish legislation from 2017 establishing a disciplinary procedure regime for judges were inadmissible. However, it stated that the fact that national judges made requests for a preliminary ruling which turned out to be inadmissible cannot lead to disciplinary proceedings being brought against them. The Court observed that provisions of national law which expose national judges to disciplinary proceedings as a result of the fact that they submitted a reference to the Court for a preliminary ruling cannot be permitted. Not being exposed to disciplinary proceedings or measures for that reason also constitutes a guarantee essential to the independence of the judiciary. Judgment of 26 March 2020, Miasto Łowicz and Prokurator Generalny, C-558/18 and C 563/18

Asylum policy

An increase in migratory flows and the complexity of migration management have led the Court to rule on the compatibility of the legislation of some Member States on asylum procedures with the protective measures provided for by EU law. The Charter, the ‘Procedures’ Directive, the ‘Reception’ Directive, the ‘Returns’ Directive and the Dublin III Regulation impose a number of obligations on Member States, such as the guarantee of effective access to the asylum procedure.

The case-law of the Court of Justice in 2020 has continued to give specific responses to the definition of the conditions for implementing the applicable rules, by striking a balance between the right to asylum and the protection of public order and the legitimate interests of the Member States.

  • In the context of an urgent reference for a preliminary ruling brought by a Hungarian court, the Court of Justice held that the placing of asylum seekers or third-country nationals who are the subject of a return decision in the Röszke transit zone at the Serbian-Hungarian border must be classified as detention. If, following judicial review of the lawfulness of such detention, it is established that the persons concerned have been detained for no valid reason, the court hearing the case must release them with immediate effect or possibly adopt an alternative measure to detention. Judgment of 14 May 2020, FMS and Others, C-924/19 PPU and Others

  • Furthermore, the Court of Justice held that Hungary had failed to fulfil its obligations under EU law in the area of procedures for granting international protection and returning illegally staying third-country nationals. In particular, restricting access to the international protection procedure, unlawfully detaining applicants for that protection in transit zones and moving illegally staying third-country nationals to a border area, without observing the guarantees surrounding a return procedure, constitute infringements of EU law. Judgment of 17 December 2020, Commission v Hungary, C-808/18

  • In the context of three actions for failure to fulfil obligations brought by the Commission against Poland, Hungary and the Czech Republic, the Court of Justice held that, by refusing to comply with the temporary mechanism for the relocation of applicants for international protection, those three Member States had failed to fulfil their obligations under EU law. Those Member States can rely neither on the maintenance of law and order and the safeguarding of internal security, nor on the alleged malfunctioning of the relocation mechanism to avoid, in general terms, implementing that mechanism. Judgment of 2 April 2020, Commission v Poland, Hungary and the Czech Republic, C-715/17 and Others

Protection of personal data



The Court of Justice in the Digital World
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The European Union has set out rules forming a solid and coherent foundation for the protection of personal data regardless of the context in which that data is collected (online shopping, bank loans, job searches, requests for information from public authorities). The rules apply equally to public and private persons and entities established within or outside the European Union, including undertakings that offer goods or services, such as Facebook or Amazon, whenever they request or re-use the personal data of EU citizens.

In 2020, the Court of Justice gave a number of rulings on the liability stemming from the collection and processing of personal data by national authorities, including intelligence services.

  • The Court of Justice annulled the Commission’s decision on the adequacy of the mechanism for protecting personal data transferred to the United States from the European Union (‘Data Protection Shield’). That decision followed on from the Schrems judgment of 2015 (C-362/14) by which the Court of Justice annulled the Commission’s decision finding that the United States ensured an adequate level of protection of the personal data in question (‘Safe Harbour’). In particular, the Court of Justice criticised the Commission for not limiting, in its new decision, the access to and use by US public authorities, including intelligence services, of such data to what is strictly necessary. Judgment of 16 July 2020, Schrems and Facebook Ireland, C-311/18

  • So far as concerns data processing, the Court of Justice confirmed that EU law precludes, in principle, national legislation requiring providers of electronic communications services to forward users’ traffic data and location data to a public authority or to retain such data in a general or indiscriminate way for the purpose of combating criminal offences and crime. It stated, however, that exceptions are possible in situations where there are serious threats to national security or in order to combat serious crime or to prevent serious threats to public security. Judgments of 6 October 2020, Privacy International and La Quadrature du Net and Others, C-623/17 and C-511/18 and Others


  • Lastly, the Court of Justice found that Hungary failed to fulfil its obligations under EU law in having imposed restrictions on the financing of civil organisations by persons established outside that Member State. A Hungarian law imposes, subject to penalties, obligations of registration, declaration and publication on civil society organisations receiving support from abroad exceeding a certain threshold. The Court of Justice considered that such restrictions are discriminatory and run contrary to the free movement of capital and freedom of association, as well as the principles of respect for private life (see section ‘A Union based on the value of the human person and on the rule of law’) and protection of personal data. Judgment of 18 June 2020, Commission v Hungary (Transparency of associations), C-78/18

Consumer protection

Consumer protection is one of the major concerns of the European Union, which seeks to ensure the health and safety of consumers and oversees the application of rules protecting them, and to increase awareness of their rights, wherever they live, travel to or buy from in the European Union.

In 2020, the Court of Justice gave a number of rulings on the scope of consumer rights.

 The Court of Justice: Guaranteeing the Rights of EU Consumers
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  • The Court of Justice interpreted, for the first time, the EU regulation enshrining ‘internet neutrality’ in two Hungarian cases concerning commercial practices granting preferential tariffs (‘zero tariffs’) for the use of certain ‘favoured’ applications and, at the same time, making the use of other applications subject to measures blocking or slowing down traffic. It held that the requirements to protect internet users’ rights and to treat traffic in a non-discriminatory manner preclude such practices. Judgment of 15 September 2020, Telenor Magyarország Zrt, C-807/18 and C-39/19

  • In cases concerning furnished accommodation offered for rent on the Airbnb website, the Court of Justice held that national legislation making the repeated short-term letting of accommodation to a transient clientele which does not take up residence there subject to authorisation is consistent with EU law. The Court of Justice considered that combating the long-term rental housing shortage constitutes an overriding reason relating to the public interest justifying such legislation. Judgment of 22 September 2020, Cali Apartments, C-724/18 and Others

  • With regard to unfair terms in consumer contracts, the Court of Justice considered that the contractual term in mortgage loan agreements providing for the application of a variable interest rate based on a reference index applied by national savings banks is an unfair term unless it is plain and intelligible. If that term is found to be unfair, national courts may replace that index with other criteria provided for by law in order to protect the consumer from particularly unfavourable consequences, such as the annulment of the loan agreement. Judgment of 3 March 2020, Gómez del Moral Guasch, C-125/18

  • The Court of Justice also held that, whilst national legislation may provide for a time limit for an action for reimbursement initiated by the consumer, that time limit must not be less favourable than that concerning similar actions or render impossible or excessively difficult the exercise of the consumer’s rights. Judgment of 9 July 2020, Raiffeisen Bank, C-698/18 and Others

  • So far as concerns cosmetic product labelling, the Court of Justice held that information as to the ‘function’ which must appear on the product’s container and its packaging must inform consumers clearly as to that product’s purpose and method of use. Information concerning the particular precautions to be observed when using that product, its function and its ingredients may not appear in a company catalogue referred to by the symbol of a hand with an open book placed on the container or the packaging. Judgment of 17 December 2020, A.M. v E.M., C-667/19

  • As for consumer and environmental protection, the Court of Justice held that a car manufacturer cannot equip its vehicles with software capable of distorting the results of type-approval tests for emissions of gaseous pollutants. Consumers who have suffered damage by purchasing unlawfully manipulated vehicles can bring legal proceedings against the motor vehicle manufacturer before the courts of the Member State in which the vehicles were sold to them. The damage suffered by the purchaser occurs in the Member State in which he or she purchases the vehicle for a price higher than its actual value. Judgment of 17 December 2020, CLCV and Others, C-693/18 / Judgment of 9 July 2020, Verein für Konsumenteninformation, C-343/19

  • Better consumer and environmental protection also follows from the judgment of the General Court rejecting the request of PlasticsEurope, an international association which represents and defends the interests of undertakings that manufacture and import plastic products, and upholding the decision of the European Chemicals Agency pursuant to which bisphenol A is subject to authorisation as a substance with endocrine disrupting properties that may have serious effects on the environment. Judgment of 16 December 2020, PlasticsEurope, T-207/18

  • Two judgments delivered in 2020 concern meat consumption. The Court of Justice held, in one of those judgments, that EU law does not preclude national legislation imposing an obligation to stun animals prior to slaughter (see section ‘A Union based on the value of the human person and on the rule of law’). In the other judgment, the General Court dismissed the action brought by two of the largest producers and distributors of meat and meat products in the world seeking the annulment of the regulation prohibiting, for public health reasons, the export to the European Union of certain products of animal origin. In the circumstances of that case, the Brazilian authorities had not provided, in respect of certain national establishments, guarantees concerning compliance with public health rules required by EU law. Judgment of 17 December 2020, Centraal Israëlitisch Consistorie van België, C-336/19 / Judgment of 8 July 2020, BRF and SHB Comercio e Industria de Alimentos, T-429/18

Air transport

Over the past year, the Court of Justice had occasion to develop its case-law on air transport. A recurring theme is compensation for passengers in certain situations. The rights of consumers in this field were thus strengthened by the Court of Justice through its clarifications.


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  • The Court of Justice held that passengers whose flights have been cancelled or subject to a long delay may demand payment of the compensation provided for under EU law in the national currency of their place of residence. It considered that EU law prohibits the dismissal of an action brought for that purpose by such passengers on the sole ground that the claim was expressed in that national currency. The refusal to allow such a payment would be incompatible with the requirement to interpret broadly the rights of air passengers and with the principle of equal treatment of aggrieved passengers. Judgment of 3 September 2020, Delfly, C-356/19

  • A dispute between the air carrier TAP and a passenger arose concerning the compensation of that passenger for a delay in arrival of nearly 24 hours of a flight from Fortaleza (Brazil) to Oslo (Norway) via Lisbon (Portugal). The delay to the flight was caused by the fact that, on an earlier flight, the aircraft that operated the Lisbon-Oslo flight had been re-routed to disembark a passenger who had physically assaulted others. The Court of Justice held that the unruly behaviour of an air passenger may exempt the carrier from its obligation to pay compensation for the cancellation or long delay of the flight concerned or of a subsequent flight operated by that carrier using the same aircraft. Judgment of 11 June 2020, Transportes Aéreos Portugueses, C-74/19

  • A Kazakh passenger in Larnaca (Cyprus) was denied boarding of a flight operated by the Romanian air carrier Blue Air to Bucharest (Romania). The denied boarding was based on the allegedly inadequate nature of the passenger’s travel documentation. In a reference for a preliminary ruling from a Cypriot court, the Court of Justice considered that it is not for the air carrier to decide definitively on the inadequate nature of such documentation and that, in the event of challenge by that passenger, it is for the competent court to assess whether his denied boarding was reasonably justified or not. If not, the passenger is entitled to compensation and assistance provided for by EU law. Judgment of 30 April 2020, Blue Air, C-584/18

  • The Italian Competition and Market Authority criticised Ryanair for having published on the internet prices for air services that did not indicate, from the first time that they were shown, certain fundamental elements. In answer to questions on this point, the Court of Justice held that air carriers must indicate, from the first time their price offers are published on the internet and from the initial offer, the VAT on domestic flights, the fees charged for paying by credit card and the check-in fees payable where no method of checking-in free of charge is offered as an alternative. Judgment of 23 April 2020, Ryanair, C-28/19

  • In answer to questions referred by the Court of Appeal, Helsinki (Finland), the Court of Justice considered that an air passenger who has agreed to travel on an alternative flight, where the air carrier of the re-routing flight is the same as that of the cancelled flight, is entitled to compensation for a delay in the re-routing flight. Judgment of 12 March 2020, Finnair, C-832/18

Workers and social security

In order to facilitate the free movement of workers and their families, the European Union has coordinated the social security systems of the Member States. Whilst respecting the competences of each Member State to configure its own social security system, EU law, by virtue, in particular, of the principle of equal treatment, seeks to harmonise, as far as possible, the working and employment conditions for posted workers with those of workers employed by undertakings established in the host Member State. The objective pursued by EU law is to ensure better protection of the health and safety of workers.

Each year, the Court of Justice is called upon, on numerous occasions, to interpret EU law in this field. 2020 was no exception.


The Court of Justice in the Workplace – protecting the rights of workers
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  • Asked to give a preliminary ruling concerning family allowances paid by the Grand Duchy of Luxembourg, the Court of Justice decided that a Member State granting a family allowance in respect of all children resident on the national territory is not entitled to refuse to pay that allowance in respect of the child of the spouse of a frontier worker where there is no parent-child relationship with that worker but where that worker supports that child. That allowance constitutes a social advantage and a social security benefit and it is therefore subject to the principle of equal treatment enjoyed by frontier workers and, indirectly, the members of their families. Judgment of 2 April 2020, Caisse pour l'avenir des enfants, C-802/18

  • In proceedings between a German student residing in France and the Land Rhineland-Palatinate where she attends secondary school, the Court of Justice held that making the Land Rhineland- Palatinate reimbursement of school transport costs subject to residence in the Land concerned constitutes indirect discrimination against cross-border workers and their families which, as a rule, is prohibited by EU law. In the case of school transport in the Land Rhineland-Palatinate, such a residence requirement is not justified by an overriding reason in the public interest relating to the organisation of the school system. Judgment of 2 April 2020, Landkreis Südliche Weinstraße v PF and Others, C-830/18

  • The Court of Justice dismissed the actions brought by Hungary and Poland seeking annulment of the directive strengthening the rights of posted workers. It stated that given, in particular, the changes in the internal market following the successive enlargements of the European Union, the EU legislature could undertake a reassessment of the interests of undertakings taking advantage of the freedom to provide services and the interests of their workers posted to a host Member State, in order to ensure that the freedom to provide services is exercised by those undertakings and undertakings established in the host Member State on a level playing field. Judgments of 8 December 2020, Hungary and Poland v Parliament and Council, C-620 and 626/18

  • In a case concerning a transport undertaking from the Netherlands using drivers coming from Germany and Hungary, the Court of Justice held that the directive concerning the posting of workers is, in principle, applicable to road transport, particularly international road transport. Consequently, the collective agreements of the host Member State apply to workers posted to the territory of that Member State. However, the fact that a driver working in international road transport, who has been hired out by an undertaking established in the host Member State, receives the instructions relating to his or her tasks and starts or finishes them in the territory of that Member State, is not sufficient in itself to consider that that driver has been posted to the territory of that Member State. Judgment of 1 December 2020, Federatie Nederlandse Vakbeweging, C-815/18

  • The Spanish airline Vueling was convicted, in criminal proceedings, on the basis of a finding of social fraud in France due to the affiliation of its flying personnel, posted to the Paris-Charles de Gaulle Airport at Roissy, to the Spanish social security system rather than the French social security system. According to the Court of Justice, the French civil courts, before which claims for compensation had been brought, cannot be bound by that definitive finding of fraud when, in breach of EU law, that finding has not been preceded by a dialogue with the Spanish institution, allowing it to re-examine the documents available to it and, where appropriate, declare to be invalid or withdraw the certificates attesting to the affiliation of workers to Spanish legislation. Judgment of 2 April 2020, CRPNPAC and Vueling Airlines, C-370/17 and Others

  • As regards the entitlement to paid annual leave, the Court of Justice stated that a worker dismissed unlawfully then reinstated as an employee is entitled to paid annual leave for the period between the two events even if, during that period, he or she has not actually worked. However, where, during that period, a worker has taken new employment, he or she will be able to claim the entitlement corresponding to the period during which he or she has been in that employment only from the new employer. Judgment of 25 June 2020, Varhoven kasatsionen sad na Republika Bulgaria and Iccrea Banca, C-762/18 and Others

State aid

Issues related to State aid raise complex, strategic questions in terms of the interpretation and application of the rules of EU law.

In 2020, the Court of Justice and the General Court gave judgment in a number of State aid cases relating to key sectors of the economy in the Member States. Those cases reflect the difficulties in applying State aid rules in areas such as taxation, energy policy, environmental protection or compulsory health insurance.

  • With regard to the question raised by Austria whether the aid granted by the United Kingdom for the construction of Hinkley Point C nuclear power station could be approved by the Commission on the ground that it facilitated the development of certain activities or of certain areas, the Court of Justice answered in the affirmative. It also observed that, subject to compliance with the rules of EU law on environmental protection, the United Kingdom was free to determine the composition of its own energy mix. Judgment of 22 September 2020, Austria v Commission, C-594/18 P

  • The Court of Justice was also called upon to review the lawfulness of the provision of State resources in favour of two health insurance bodies operating under Slovak State supervision in the context of a compulsory health insurance scheme. It found that, despite the existence of a certain amount of competition between public and private bodies in the context of the scheme, it pursued a social objective and applied the principle of solidarity. Consequently, it held, upholding the decision of the Commission, that the case of the two health insurance bodies in question did not fall within the rules of EU law on State aid. Judgment of 11 June 2020, Commission and Slovakia v Dôvera zdravotná poistʼovňa, C-262/18 P and Others

  • Similarly, the Court of Justice examined the nature of the subsidies that France had granted, in the form of a reduction in employees’ contributions, to fishermen and fish farmers affected by the wreck of the tanker Erika and by the violent storms in 1999. It found that the reduction related to charges covered by employees’ contributions not employers’ contributions. Consequently, the reduction conferred no advantage on fisheries undertakings and, therefore, EU State aid rules, which concern only undertakings, did not apply. The Court of Justice thus ruled that the Commission’s decision ordering France to recover the subsidies was invalid in part. Judgment of 17 September 2020, Ministre de l'Agriculture et de l'Alimentation v Compagnie des pêches de Saint-Malo, C-212/19

  • By contrast, the Court of Justice ordered Italy to pay a lump sum of €7.5 million and a daily penalty payment of €80 000 for failing to recover aid – of a total amount of approximately €13.7 million – unlawfully granted to the hotel industry in Sardinia. Although, in 2008, the Commission ordered Italy to recover the aid and that, in 2012, the Court of Justice found that Italy had failed to fulfil its obligations in that regard, that Member State still did not comply with its obligation to recover the aid at issue. The Commission then brought a second action for failure to fulfil obligations to impose pecuniary penalties against Italy. That action was upheld by the Court of Justice. Judgment of 12 March 2020, Commission v Italy, C-576/18

  • As for the General Court, it annulled the decision taken by the Commission finding that the Irish tax rulings in favour of Apple constituted State aid. According to the Commission, Ireland had granted Apple €13 billion in unlawful tax advantages, which therefore had to be recovered by the Member State from the recipient. However, the General Court considered that the Commission did not succeed in showing to the requisite legal standard that the tax rulings in question granted Apple a selective economic advantage and constituted State aid. Judgment of 15 July 2020, Ireland v Commission and Apple Sales International, T-778/16 and Others

  • Similarly, the General Court annulled the Commission’s decision finding aid measures implemented by the Autonomous Community of Valencia (Spain) in favour of the Spanish football clubs Valencia CF and Elche CF to be unlawful. According to the Commission, the aid measures took the form of guarantees to associations linked to the football clubs in question intended to cover the bank loans taken out by those associations in order to participate in the increase in the capital of the club to which they were respectively linked. However, the General Court considered that the Commission’s decision was vitiated by a number of errors concerning, in particular, the existence of comparable guarantees on the market. Judgments of 12 March 2020, Valencia Club de Fútbol and Elche Club de Fútbol, T-732/16 and T-901/16

  • By contrast, the General Court dismissed the action against the Commission decision declaring illegal the aid from the Autonomous Region of Sardinia to several airlines serving Sardinia. The aid at issue, seeking to improve the island’s air service and promote it as a touristic destination, was made available to beneficiaries through the operators of the main Sardinian airports. The General Court confirmed that the aid had not been granted to those operators, but to the airlines concerned, which must therefore repay it. Judgments of 13 May 2020, Volotea, Germanwings and easyJet, T-607/17, T-716/17 and T-8/18

  • The General Court also upheld the decision taken by the Commission according to which the Spanish tax system applicable to certain finance lease agreements entered into by shipyards with economic interest groupings (EIGs) constituted, as an investment vehicle for granting tax advantages, a State aid scheme in favour of members of the EIGs in question. According to the Commission, that scheme, under which a shipping company acquires a vessel not directly from a shipyard but through an EIG, was partially incompatible with the internal market, in so far as it also allowed shipping companies to benefit from a 20-30% price reduction when purchasing ships constructed by Spanish shipyards. Judgment of 23 September 2020, Spain v Commission, T-515/13 RENV and Others

  • Lastly, the General Court upheld the Commission's decision by which it found that the unlimited public guarantee granted by France to IFP Énergies nouvelles (IFPEN), a publicly owned establishment entrusted with research and development in the fields of energy, partially constituted State aid. The General Court considered that IFPEN and France were unable to rebut the presumption that the grant of such a guarantee conferred an economic advantage on IFPEN vis-à-vis its competitors. Judgment of 5 October 2020, France v Commission and Others, T-479/11 RENV and Others

Competition

Free competition contributes to the improvement of the well-being of Union citizens by offering them a wider choice of higher quality goods and services at more competitive prices. To achieve this, EU rules seek to prevent restrictions and distortions of competition within the internal market. The most important standards in this area are enshrined in the Treaty on the Functioning of the European Union: they prohibit agreements likely to hinder free competition, as well as the abuse of a dominant position.

In 2020, the Court of Justice and the General Court interpreted and applied those rules in a number of cases concerning different sectors of the economy.

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  • The General Court annulled in part the Commission’s inspection decisions following suspicions of anticompetitive practices adopted by a number of French undertakings in the distribution sector. It considered that the Commission had failed to show that it had sufficiently strong evidence to suspect exchanges of information concerning the future commercial strategies of the undertakings. Judgments of 5 October 2020, Casino and Others, T-249/17 and Others

  • The General Court confirmed the existence, established by the Commission, of a cartel in the smart card chip sector between several undertakings that had coordinated their pricing policy. The General Court ordered, however, that the fine imposed by the Commission, inter alia on Infineon, be reduced given the limited number of the anticompetitive contacts which Infineon had had with its competitors and the insufficient evidence concerning one of the anticompetitive contacts identified by the Commission. Judgment of 8 July 2020, Infineon Technologies, T-758/14 RENV

  • For the first time, the General Court had occasion to review the lawfulness of rules adopted by an international sports federation. The General Court held that the rules of the International Skating Union distorted free competition by providing for penalties for athletes taking part in speed skating events not recognised by it. The General Court considered that the restrictions deriving from the pre-authorisation system provided for by the rules at issue could not be justified by the objective of protecting the integrity of the sport. Judgment of 16 December 2020, International Skating Union, T-93/18

  • The General Court upheld the Commission’s decision finding that Lietuvos geležinkeliai AB (LG), the national railway company of Lithuania, abused its dominant position on the Lithuanian rail freight market. LG had concluded a rail freight agreement with Orlen for the purpose of transporting oil products to Western Europe. Following a dispute with LG, Orlen wished to entrust the transport of its products to the national railway company of Latvia. By removing the track which ran from the place of departure of its goods, in Lithuania, to Latvia, LG prevented the rival Latvian company from concluding the agreement with Orlen. Such conduct was found to constitute abuse of a dominant position. Judgment of 18 November 2020, Lietuvos geležinkeliai AB, T-814/17

  • In proceedings between a company operating a hotel in Germany and Booking.com BV, a company governed by Netherlands law operating an accommodation booking platform, the Court of Justice, in a reference for a preliminary ruling from a German court, held that a hotel using the platform Booking.com may bring proceedings against Booking.com before a court of the Member State in which that hotel is established in order to bring to an end a possible abuse of a dominant position. Booking.com claimed that the action against it should be brought before a court of the Member State in which it has its seat. The Court of Justice rejected that argument. Judgment of 24 November 2020, Wikingerhof GmbH & Co. KG v Booking.com BV., C-59/19

  • A dominant position on the electronic communications and media markets may pose a risk to pluralism of information. That finding was the basis of Italian legislation prohibiting undertakings holding a significant position in the electronic communications sector from acquiring a significant economic dimension in the media sector. In the context of the hostile acquisition campaign for shares in the Italian company Mediaset launched by the French company Vivendi and the proceedings that followed, the Court of Justice held, however, that such legislation constitutes a prohibited impediment to the right of establishment when it does not have the aim of safeguarding pluralism of information. Judgment of 3 September 2020, Vivendi SA, C-719/1

  • With regard to concentrations between undertakings, the General Court annulled the Commission’s decision to block the proposed acquisition of Telefónica UK by Hutchinson 3G UK. It held that the Commission had not demonstrated that such an acquisition would establish a significant impediment to effective competition on the UK mobile telephony market. It also noted that the Commission had not demonstrated that such an operation would lead to an increase in prices for services and a reduction in their quality. Judgment of 28 May 2020, CK Telecoms UK Investments, T-399/16

The banking sector and taxation

EU rules relating to the internal market (‘the single market’) allow goods and services to be marketed freely within the European Union. In order to avoid, in particular, distortions of competition between undertakings, Member States have agreed to align their rules on the taxation of goods and services. Measures have also been adopted at EU level to coordinate economic policies and corporate and income tax rules to a certain extent, in order to ensure they are fair, efficient and conducive to growth. However, the amount of tax paid by individuals and the way in which the sums collected in respect of such taxes are spent falls within the scope of the competence of the Member States.

  • In a case concerning Google Ireland, the Court of Justice held that Hungarian legislation which imposes an obligation to submit a tax declaration on suppliers of advertising services established in another Member State for the purposes of their liability to the Hungarian tax on advertising, is compatible with EU law and, more specifically, the principle of the freedom to provide services. By contrast, it stated that the principle of the freedom to provide services and the principle of proportionality preclude Hungarian legislation which fines suppliers of services for non-compliance with the obligation to submit a tax declaration in a series of fines issued within several days capable of amounting to several million euros. Judgment of 3 March 2020, Google Ireland, C-482/18

  • In another Hungarian case, the Court of Justice held that the special taxes levied in Hungary on the turnover of telecommunications operators and of undertakings in the retail trade sector are compatible with EU law. Those undertakings, which are predominately owned by persons (natural or legal) of other Member States, achieve the highest turnover in the Hungarian markets concerned and therefore bear much of those special taxes. The Court of Justice nevertheless held that that fact reflects the economic reality of those markets and does not constitute discrimination against those undertakings. Judgments of 3 March 2020, Vodafone Magyarország and Tesco-Global Áruházak, C-75/18 and C-323/18

  • In 2020, the General Court delivered its first four judgments concerning decisions of the European Central Bank (ECB) imposing pecuniary penalties as part of its prudential supervision of credit institutions. It thus annulled in part three decisions on the basis that inadequate reasons were given for those decisions. No details were provided of the methodology applied by the ECB in determining the amount of the penalties imposed. Judgments of 8 July 2020, VQ v ECB, T-203/18, T-576/18, T-577/18, T-578/18

Intellectual property

The Court of Justice and the General Court ensure the interpretation and application of EU rules adopted to protect and defend intellectual property (copyright, trade marks, design protection, patent rights) with a view to increasing business competitiveness.

Throughout 2020, the two courts of the European Union have intervened in this field on numerous occasions, clarifying the extent of liability for infringement of intellectual property rights and the conditions under which intellectual property is protected, with a special focus, with regard to trade marks, on the concepts of ‘distinctive character’ and ‘likelihood of confusion’.

  • So far as concerns the liability of individuals and companies for infringements of the rights covered by an EU trade mark, the Court of Justice held that the mere storage by Amazon, on its online marketplace (Amazon-Marketplace), of goods which infringe trade mark rights does not constitute an infringement by Amazon of those trade mark rights. A company which, on behalf of a third-party seller of counterfeit goods, stores goods without being aware that they infringe trade mark rights does not itself use that trade mark unlawfully, so long as it does not pursue, like the seller, the aim of offering the goods for sale or putting them on the market. Judgment of 2 April 2020, Coty Germany, C-567/18 and Others

  • As for distinctive character, which is essential for the validity of a mark, the General Court pointed out that a shape, the registration of which as a three-dimensional mark has been applied for, is devoid of distinctive character where it does not depart significantly from the norms and customs of the sector concerned. In the case of a shoe lace, it stated that the novelty of its shape and the beauty of its design are not sufficient, on their own, to find that a distinctive character exists. The function of a trade mark is to indicate the commercial origin of the product and thus to enable consumers to identify certain goods as being associated with a certain undertaking. Judgment of 5 February 2020, Hickies, T-573/18

  • In the same vein, but in the case of a figurative mark, the General Court observed that the pattern of a lion’s head encircled by chains constitutes a typical and familiar representation for buttons and jewellery and is therefore devoid of distinctive character in respect of those goods. By contrast, in another case, the General Court criticised EUIPO for failing to take account of certain evidence for the purposes of assessing the distinctive character, acquired through use, of a mark consisting of a chequerboard pattern for bags and travelling bags. Judgments of 5 February 2020, Pierre Balmain, T-331/19 and T-332/19 / Judgment of 10 June 2020, Louis Vuitton Malletier, T-105/19

  • A word mark is also devoid of distinctive character if it is limited to describing a characteristic of a product for which registration is sought. The General Court considered that the word mark WAVE for aquarium lights may have distinctive character since the word ‘wave’ does not describe a characteristic of those lights. Judgment of 23 September 2020, Tetra GmbH, T-869/19

  • It is precisely in the light of the weak distinctiveness of two signs representing a horn to identify postal services, that the General Court excluded a likelihood of confusion between them. The representation of a post horn, often on a yellow background, is traditionally used by national postal operators throughout the European Union. Therefore, the public will not associate the post horn or the colour yellow with a particular company but, more generally, with several national postal operators. Judgment of 11 November 2020, Deutsche Post, T-25/20

  • Again with regard to the likelihood of confusion between two marks, but this time in respect of sports equipment and clothing, the Court of Justice held that the reputation of the footballer Lionel Messi is likely to counteract any likelihood of confusion between his mark MESSI and the earlier mark MASSI belonging to a Spanish company. Judgment of 17 September 2020, Messi, C-449/18 and Others

  • In another case concerning the assessment of the likelihood of confusion, the General Court also pointed out that the presence of the same word in two marks (in this case, the word ‘Teruel’ in the marks AIRESANO BLACK El IBERICO DE TERUEL and JAMON DE TERUEL CONSEJO REGULADOR DE LA DENOMINACION DE ORIGEN) is not sufficient to create a likelihood of confusion. Judgment of 28 May 2020, Consejo Regulador, T-696/18

  • As regards the criterion of similarity between two marks, the General Court found that the word mark LOTTOLAND, registered in respect of industrial services, has a high degree of similarity with the earlier figurative marks LOTTO, registered in respect of gambling games. However, it stated that there was no link between the two marks in the light, in particular, of the different nature of the services covered by the marks at issue and of the relevant publics. In the absence of such a link, the use of the mark LOTTOLAND would not take unfair advantage of, and would also not be detrimental to, the distinctive character or the repute of the earlier marks. Judgment of 11 November 2020, Lottoland, T-820/19

  • It sometimes happens that a dispute concerning distinctive signs is not between individuals or undertakings but Member States, as in the dispute concerning the use of the word ‘Teran’ for a wine grape variety used in Slovenia and Croatia. After the accession of Slovenia to the European Union in 2004, that designation was recognised as a protected designation of origin (PDO). In 2017, a regulation established that the word ‘Teran’ could also be used, as from the accession of Croatia to the European Union in 2013, for certain Croatian wines. The General Court dismissed Slovenia’s action for annulment of that regulation which enables the PDOs to co-exist peacefully without infringing the principles of legal certainty and the protection of legitimate expectations. Judgment of 9 September 2020, Slovenia v Commission, T-626/17

The functioning of the European institutions

It is for the two courts of the European Union to verify that acts (or failure to adopt certain acts) of the institutions, bodies, offices and agencies of the Union comply with EU law. Accordingly, the Court of Justice and the General Court are responsible for the judicial protection of the rights of individuals, where they are directly and individually concerned by decisions taken at EU level. By contrast, only the national courts are competent to review the lawfulness, in the light of national law, of acts of national authorities.

  • The Courts of the European Union have been seised, on several occasions, by Mr Junqueras i Vies, Vice-President of the Gobierno autonómico de Cataluña (Autonomous Government of Catalonia, Spain), concerning his election to the European Parliament in 2019. The Vice-President of the General Court, then the Vice-President of the Court of Justice in the context of appeal proceedings, dismissed the application made by Mr Junqueras i Vies for interim measures to protect his parliamentary immunity. In addition, the General Court declared the action brought by Mr Junqueras i Vies, against the statement by the European Parliament that his seat was vacant, to be inadmissible. The European Parliament has no competence to review decisions of the Spanish authorities declaring Mr Junqueras i Vies to be ineligible to hold office as a member of the European Parliament under national law and the resulting decision that the seat is vacant. Order of 3 March 2020, Junqueras i Vies, T-24/20 R / Order of 8 October 2020, Junqueras i Vies, C-201/20 P(R) / Order of 15 December 2020, Junqueras i Vies, T-24/20

  • The General Court dismissed an action seeking a declaration that the European Council unlawfully refused to exclude the Czech Prime Minister, on the basis of an alleged conflict of interest, from the meetings of that institution concerning the adoption of the Multiannual Financial Framework of the European Union 2021/2027. The General Court considered that the Member States alone are competent to determine, as between their Heads of State or Government respectively, which of those persons is to represent them at European Council meetings and to establish the grounds which could lead to it being impossible for one of those persons to represent them at that institution’s meetings. Order of 17 July 2020, Wagenknecht, T-715/19

  • Mr Shindler and other nationals of the United Kingdom are long-term residents of Italy and France. As a result, they were not allowed to participate in either the Brexit referendum or the parliamentary elections in 2017, which played a determining role in the maintenance of their status as Union citizens. They therefore brought an action for ‘failure to act’ against the Commission before the General Court on account of the Commission’s ‘unlawful failure to preserve European citizenship’. The General Court dismissed the action and held that the Commission lacks the competence to adopt a binding act intended to maintain, as from the withdrawal of the United Kingdom from the European Union, the European citizenship of certain nationals of the United Kingdom. Order of 14 July 2020, Shindler, T-627/19

B | KEY FIGURES CONCERNING JUDICIAL ACTIVITY

Court of Justice

The Court of Justice deals mainly with:

  • requests for a preliminary ruling, when a national court is uncertain as to the interpretation or validity of an act adopted by the European Union. The national court stays the proceedings before it and refers the matter to the Court of Justice, which gives a ruling on the interpretation or the validity of the provisions in question. When the matter has been clarified by the Court of Justice’s decision, the national court is then in a position to settle the dispute before it. In cases calling for a response within a very short time (for example, in relation to asylum, border control, child abduction, and so forth), an urgent preliminary ruling procedure (‘PPU’) may be used;
  • appeals against decisions made by the General Court, a remedy enabling the Court of Justice to set aside the decision of the General Court;
  • direct actions, which mainly seek:
    • annulment of an EU act (‘action for annulment’) or
    • a declaration that a Member State has failed to fulfil its obligations under EU law (‘action for failure to fulfil obligations’). If the Member State does not comply with the judgment finding that it has failed to fulfil its obligations, a second action, known as an action for ‘twofold failure’ to fulfil obligations, may result in the Court imposing a financial penalty on it;
  • requests for an opinion on the compatibility with the Treaties of an agreement which the European Union envisages concluding with a non-member State or an international organisation. The request may be submitted by a Member State or by a European institution (Parliament, Council or Commission).

735 Cases brought

Preliminary ruling proceedings 556 including 9 PPUS

Main Member States from which the requests originate Germany 139 Austria 50 Italy 44 Poland 41 Belgium 36

37 Direct actions including 18 actions for failure to fulfill obligations and 2 actions for ‘twofold failure’ to fulfil obligations

131 Appeals against decisions of the General Court

1 Request for an Opinion

8 applications for legal aid

A party who is unable to meet the costs of the proceedings may apply for free legal aid.

792 Cases completed

Preliminary ruling proceedings

534 including 9 PPUs

37 Direct actions

including 26 failures to fulfil obligations found against 14 Member States

3 judgments on ‘twofold failure’ to fulfil obligations

204 Appeals against decisions of General Court

Including 40 in which the decision adopted by the General Court was set aside

15.4 months Average length of proceedings

3.9 months Urgent preliminary ruling procedures

1 045 Cases pending As at 31 December 2020

Principal subject-matters

Agriculture26

Area of freedom, security and justice119

Consumer protection 56

Custom Union 24

Environment 48

Freedoms of movement and establishment, and internal market 96

Intellectual and industrial property 27

Social law 56

State aid and competition 104

Taxation 95

Transport 86

General Court

Proceedings may be brought before the General Court, at first instance, in direct actions brought by natural or legal persons (companies, associations, and so forth) and by Member States against acts of the institutions, bodies, offices or agencies of the European Union, and in direct actions seeking compensation for damage caused by the institutions or their staff. A large part of the litigation before it is economic in nature: intellectual property (EU trade marks and designs), competition, State aid, and banking and financial supervision.

The General Court also has jurisdiction to adjudicate in civil service disputes between the European Union and its staff.

The decisions of the General Court may be the subject of an appeal, limited to points of law, before the Court of Justice. In cases which have already been considered twice (by an independent board of appeal and then by the General Court), the Court of Justice will allow an appeal to proceed only if it raises an issue that is significant with respect to the unity, consistency or development of EU law.

847 Cases brought

729 Direct actions

including 69 State aid and competition cases (including 2 actions brought by the Member States)

282 Intellectual and industrial property cases

118 EU civil service cases

260 other direct actions(including 10 brought by the Member States

75 Applications for legal aid

A party who is unable to meet the costs of the proceedings may apply for free legal aid.

748 Cases completed

631 Direct actions

Including 41 State aid and competition cases

237 Intellectual and industrial property cases

79 EU civil service cases

274 other direct actions

15.4 months Average length of proceedings

23% Percentage of decisions against which an appeal was brought before the Court of Justice

1 497 Pending cases as at 31 December 2020

Principal subject-matters

Access to documents 24

Agriculture21

Competition78

Economic and monetary policy156

Environment14

Intellectual and industrial property319

Public procurement21

Restrictive measures 65

Staff Regulations182

State aid 292