The European Commission has found a €853.6 million public service compensation in favour of Corsica Linea and La Méridionale to be in line with EU State aid rules. The French measures will compensate both companies for the provision of passenger and freight maritime transport services between Marseille and Corsica (Ajaccio, Bastia, Propriano, Porto-Vecchio and L'Île Rousse) in 2023-2030.
The Commission's assessment
In February 2024 , the Commission opened an in-depth investigation to assess whether a public service compensation awarded to Corsica Linea and La Méridionale (alone or jointly) under five public service contracts for the period from 1 January 2023 to 31 December 2030 is in line with EU State aid rules, and specifically the Service of General Economic Interest ('SGEI') Framework .
In particular, the Commission took the preliminary view that the French authorities needed to further justify why the inclusion of certain public service obligations in the five public service contracts corresponded to a genuine public service need. This concerned first the existence of a genuine need for transport of towed freight traffic between Marseille and the five Corsican ports, since the market seemed already able to deliver similar services to Corsica from neighbouring ports of Marseille. Second, the public service contracts required from the beneficiaries of the contracts to transport a minimum volume of freight traffic per crossing between Marseille and the five Corsican ports that may have been seen as disproportionate compared with the volume of freight needed to meet the demand of the users of the transport services.
After an in-depth investigation, the Commission concluded that the measures are in line with EU State aid rules. Submissions from France and interested parties clarified the questions initially raised by the Commission.
In particular, the French authorities demonstrated that market forces alone could not meet the entire users demand for towed freight between the port of Marseille and the five Corsican ports. The Commission first found that the market offer between Marseille and Corsica was irregular and insufficient. It further established that, as far as the transport of towed freight was concerned, Marseille was substitutable with neighbouring ports only to a limited extent. Therefore, the market offer available in the neighbouring ports of Marseille could not satisfy the entire demand of users using the port of Marseille for their trade of towed freight with Corsica.
The Commission also found that the minimum volumes of freight to be transported set by the public service contracts were not manifestly disproportionate. In particular, it found that the French authorities had set those volumes by taking into consideration the need to avoid any saturation of the ships and ensure a seamless flow of the goods. During the formal investigation, the Commission closely examined the historical data and forecasted traffic provided by France. Those elements proved that there was a serious risk that such saturation could occur on a regular basis over the duration of the contracts, which could ultimately harm the proper functioning of the public services and affect the users' needs.
On this basis, the Commission approved the French measures under EU State aid rules.
Background
Under EU State aid rules on public service compensation, and in particular under the SGEI Framework , adopted in 2012, companies can be compensated for the extra cost of providing a public service under certain conditions. This enables Member States to grant State aid for the provision of public services, while making sure that companies are not overcompensated, which minimises distortions of competition and ensures an efficient use of public resources.
