|Author (Corporate)||Court of Justice of the European Union|
|Content Type||News, Overview|
Judgment from the Court of Justice of the European Union (CJEU) relating to the reprivatisation process of Portuguese airline TAP — Transportes Aéreos Portugueses SA.
The Associação Peço a Palavra is a non-profit making organisation subject to Portuguese law which challenged the reprivatisation process of TAP airline. The association brought an administrative action for the annulment of the tender specifications approved by the Portuguese government in January 2015 in relation the reprivatisation process. It was claimed that certain requirements in the tender specifications infringe the freedom of establishment and freedom to provide services laid down on the TFEU. The relevant national court referred questions to the CJEU for a prelimiary ruling on the conformity with EU law of those requirements, namely that the company’s headquarters and effective management be kept in Portugal, have the capabilities to comply with public service obligations and that the existing national hub be maintained and developed.
On 27 February 2019, the Court ruled that Article 49 TFEU does not preclude the first two of those requirements. However, the requirement that the purchaser of the shares ensure that the existing national hub is maintained and developed constitutes an unjustified restriction of the freedom of establishment.
|Subject Categories||Business and Industry, Mobility and Transport|
|Subject Tags||Air Transport|
|Keywords||CJEU Judgments, Privatisation | Liberalisation | Deregulation
|Countries / Regions||Portugal|
|International Organisations||European Union [EU]|