Feeds

EU sues France over illegal France Telecom aid

The mother of all tax breaks

Top 5 reasons to deploy VMware with Tegile

The European Commission is taking France to court for failing to claw back illegal state aid granted to France Telecom in 2002.

In August 2004, the Commission ruled that the French government had handed its favourite telco a hidden subsidy worth between €798m and €1140m. This was disguised through preferential tax treatment doled out to France Telecom between 1994 and 2002.

The EU ordered France to recover the difference between the "amount that France Telecom would have had to pay if the normal business tax law had been applied and the amount of business tax actually paid by France Télécom".

But in a statement today, the Commission said:

France has rejected all of the Commission’s proposals and has not submitted any alternative proposal acceptable to the Commission for calculating the amount of aid to be recovered. In addition, almost two years after the decision, France has not yet taken any concrete measures to recover the aid. The Commission has therefore decided to initiate a state aid infringement procedure (Article 88(2) EC Treaty) against France before the Court of Justice for failure to execute its recovery obligation.

France Telecom went to the European Court of First Instance in February 2005 to appeal the EU ruling. Today’s announcement marks the EU’s response. The venue for the slugfest will be the European Court of Justice in Luxembourg., the highest court in EU-dom. ®

Internet Security Threat Report 2014

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.