Brussels, 26 November 2024 – The European Commission has approved a €853.6 million public service compensation for Corsica Linea and La Méridionale, deeming it compliant with EU State aid rules. This financial support will cover maritime transport services between Marseille and various ports in Corsica from 2023 to 2030.
Commission’s Assessment
In February 2024, the Commission initiated an in-depth investigation to evaluate whether the public service compensation granted to Corsica Linea and La Méridionale under five public service contracts adhered to EU State aid rules, specifically the Service of General Economic Interest (SGEI) Framework.
Initially, the Commission questioned the necessity of certain public service obligations included in the contracts. Specifically, it sought justification for transporting towed freight traffic between Marseille and the five Corsican ports, given that similar services were already available from neighbouring ports. Additionally, the Commission queried the requirement for a minimum volume of freight traffic per crossing, which seemed disproportionate to the actual demand.
Following a thorough investigation, the Commission concluded that the measures align with EU State aid rules. Submissions from France and interested parties addressed the Commission’s initial concerns.
The French authorities demonstrated that market forces alone could not meet the entire demand for towed freight between Marseille and the Corsican ports. The Commission found that the market offer between Marseille and Corsica was irregular and insufficient. Furthermore, Marseille was only partially substitutable with neighbouring ports for towed freight transport, meaning the market offer in neighbouring ports could not satisfy the demand from Marseille.
The Commission also found that the minimum volumes of freight to be transported, as set by the public service contracts, were not disproportionate. These volumes were determined based on the need to avoid ship saturation and ensure a seamless flow of goods. Historical data and forecasted traffic provided by France indicated a serious risk of regular saturation over the contract duration, which could harm the public services and affect users’ needs.
Background
Under EU State aid rules on public service compensation, particularly the SGEI Framework adopted in 2012, companies can be compensated for the extra cost of providing a public service under certain conditions. This ensures that companies are not overcompensated, minimising competition distortions and ensuring efficient use of public resources.
