In response to the General Court’s partial annulment of the European Commission’s 2009 ING Restructuring Decision, the Commission has approved the plan to provide legal clarity. Without the second approval decision, the annulment had the effect of leave 90 percent of the state aid uncovered by EC approval. The measures were for a 10 billion euro capital injection by the Dutch State for ING Group.
The Commission is also appealing the General Court’s judgment to the EU Court of Justice. The General Court questioned the Commission’s calculation that the change of terms for repaying the aid included a further 2 billion euros. As a result, the General Court annulled the entire assessment of the restructuring plan. In a memo outling the FAQ of the decision, the Commission explains that it does not agree that the MEIP test needed to be performed, and that the General Court went beyond what was requested by annulling the finding that the entire measure constitutes compatible state aid.
Furthermore, the Commission has opened an in-depth investigation into amendments to the 2009 plan made by the Netherlands and ING, due to implementation concerns and the complexity of the issues. The investigation will look at three issues:
1. ING did not pay adequate remuneration to the Netherlands in 2010 and 2011, despite reporting profits. The Commission will thus “assess the possibilities of still achieving sufficient remuneration for the State.”
2. The Commission will determine how to address distortions in ING’s home market, since the Dutch State and ING believe that the divestment of Westland Utretcht Bank is not feasible.
3. Following a complaint, the Commission will examine ING Direct’s pricing behavior and use of state aid.
Full content: EC Press Release
Related content: Stability and Competition in EU Banking During the Financial Crisis: The Role of State Aid Control (Gert-Jan Koopman, DG Comp)
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Clifford Chance Expands Global Antitrust Team with New Partner
Dec 6, 2024 by
CPI
Spain’s Financial Regulator Awaits Antitrust Decision on BBVA’s Hostile Bid for Sabadell
Dec 5, 2024 by
CPI
RealPage Seeks Dismissal of DOJ Antitrust Suit, Citing Legal Flaws
Dec 5, 2024 by
CPI
EU Competition Chief Signals Potential Google Breakup Amid Big Tech Scrutiny
Dec 5, 2024 by
CPI
Turkey Closes Antitrust Probe into Meta’s Threads-Instagram Practices
Dec 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Moats & Entrenchment
Nov 29, 2024 by
CPI
Assessing the Potential for Antitrust Moats and Trenches in the Generative AI Industry
Nov 29, 2024 by
Allison Holt, Sushrut Jain & Ashley Zhou
How SEP Hold-up Can Lead to Entrenchment
Nov 29, 2024 by
Jay Jurata, Elena Kamenir & Christie Boyden
The Role of Moats in Unlocking Economic Growth
Nov 29, 2024 by
CPI
Overcoming Moats and Entrenchment: Disruptive Innovation in Generative AI May Be More Successful than Regulation
Nov 29, 2024 by
Simon Chisholm & Charlie Whitehead