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EU: Commission backed on state aid payback ruling against BT

By  |  September 16, 2013

UK fixed-line telco giant BT failed in its efforts to repeal a ruling by the European Commission ordering BT to repay up to $26.5 million it received in state aid as the EU General Court rejected the appeal Monday.

The Commission ruled in 2009 that BT received unlawful state aid in part of an exemption for the BT Pension Scheme; a rival’s complaint regarding the matter lead to an investigation.

Both BT and BT Pension Scheme Trustees appealed the ruling to pay back the aid, but the EU General Court backed the Commission’s ruling.

The Pension Scheme was established to contribute to the UK’s Pension Protection Fund, launched in 2004 to safeguard pension funds even after a company’s bankruptcy.

Full Content: Bloomberg

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