The European Commission said last Friday it had opened an in-depth investigation to assess whether French aid given to shipping firms La Méridionale, which was recently acquired by CMA CGM Group, and Corsica Linea was compliant with EU state aid rules.
The EU Commission reports it wants to assess whether the public service compensation granted to the two companies for the provision of maritime transport services to Corsica between 2023 and 2030 is in line with EU State aid rules.
The probe will focus on France’s decision to give €853,6 million to those two companies for the provision of these services.
Specifically, 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 for passengers and freight between Marseille and five Corsican ports (Ajaccio, Bastia, Propriano, L’Île Rousse and Porto-Vecchio) for the period 2023-2030.
France notified the Commission compensation to Corsica Linea and La Méridionale of €853,6m for the provision of these services.
EU 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 Service of General Economic Interest Framework.
In particular, the EU investigation will assess whether the inclusion of transport of towed freight and truck drivers in the contracts is justified by a public service need, given the presence on the market of a commercial offer developed from the neighboring port.
It will also assess whether the volume of freight traffic to be transported pursuant to the contracts does not exceed the public service need identified by the French authorities.
In addition, additional clarifications are needed to conclude that the contracts comply with EU rules on public procurement.
Under the EU State aid rules on public service compensation, companies can be compensated for the extra cost of providing a public service, subject to certain criteria.
This enables member states to grant state aid for the provision of public services whilst, at the same time, making sure that companies entrusted with such services are not overcompensated.
