According to a regulation from 2020, German companies that had high sales losses during the lockdown received support for ongoing fixed costs. Fashion houses like Breuninger and Falke, which also sell online, ruled that out. An action against it now fails before the ECJ.
The Court of Justice of the European Union (EuG) has dismissed lawsuits by fashion retailers Breuninger and Falke against German corona aid for companies. The court in Luxembourg ruled that the approval of the support for the fixed costs was proportionate and did not violate the principle of equal treatment. The two clothing companies complained that the fixed cost aid decided in autumn 2020 distorted competition.
The regulation stipulated that companies with sales losses of more than 30 percent in the pandemic could receive financial support. At first this aid was limited to three million euros, later the limit was raised to up to ten million euros. The EU Commission approved the aid in November 2020 and the change in February 2021.
Falke and Breuninger saw themselves as disadvantaged because the regulation was aimed at the entire company and not at individual business areas. They were almost completely excluded from the aid, they said. Breakdowns in individual business areas – such as sales in branches – were not taken into account because there were no losses in online trading.
The court did not follow this reasoning. It also dismissed a lawsuit by Breuninger against German compensation figures for companies from May 2021.
