ECJ rejects Netherlands’ appeal in monopoly licensing dispute
The ECJ Netherlands monopoly case dates all the way back to 2016. Under the latest ruling the EC must open an investigation into the market's tender process for lottery monopolies
The European Court of Justice (ECJ) has this week rejected the Netherlands’ appeal against a 2023 ruling that prevented an investigation into the Netherlands unfairly awarding its monopoly licences to incumbent lotteries.
As a result, the Netherlands has been ordered to bear its own costs for the long-standing case and to pay those further costs incurred by defendant – the European Gaming and Betting Association (EGBA).
In the 2023 ruling, the EU General Court found the European Commission (EC) had failed to properly investigate whether the Netherlands had provided incumbent Dutch lotteries with unlawful state aid, by extending their monopoly lottery licences without an open tender process.
The case, brought by the EGBA, dated back to 2016 when the trade body lodged a complaint with the European Commission, highlighting the lack of open tender process in the Netherlands.
It said the Netherlands’ process to renew the incumbents’ licences constituted a violation of the EU’s state aid rules.
Then, in 2023, the General Court insisted the EC should have analysed whether licence holders were mandated to pay a portion of their proceeds to certain charities, as this process could have amounted to indirect state aid.
What’s next for the Netherlands?
However, on Thursday, the EGBA celebrated the ECJ’s latest judgment, which dismissed the Netherlands’ appeal entirely and upheld the General Court’s previous 2023 ruling.
As a result, the EC will be required to assess distribution of aid by the Netherlands’ gambling monopolies, including indirect charity beneficiaries.
It will launch an investigation into whether the Netherlands’ lottery tender process facilitated unlawful state aid distribution.
EGBA secretary general welcomes ECJ Netherlands monopoly ruling
Reflecting on the latest result, and the ending to a drawn-out legal process, EGBA Secretary General Maarten Haijer hailed the ECJ’s Thursday ruling as “a clear victory for the proper enforcement of EU law”.
In a statement Haijer said: “The court has confirmed what we said all along: the Commission must investigate state aid complaints thoroughly and cannot take shortcuts.
“While this case dates back to 2014, it remains relevant today. It demonstrates that the Commission must fulfil its responsibilities as guardian of the treaties – and that there are consequences when it fails to do so.”
Haijer reiterated that EU member states must ensure a fair and competitive process when issuing gambling licences.
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