Court of Justice rejects European Commission appeal on late payment interest

The European Court of Justice has dismissed an appeal by the European Commission against a General Court judgment that upheld appeals by Total and Elf Aquitaine against the imposition of two years’ interest on their penalties for participation in the acrylic glass cartel.

In June and July 2011 the Commission had sent letters to Total and Elf Aquitaine demanding payment of the fines imposed as well as late payment interest.  The General Court concluded that the letters were ‘actionable measures’ within the meaning of Article 263 TFEU as they affected the interests of Total and Elf Aquitaine and went beyond steps that were merely preparatory.  The General Court also concluded that the letters should be annulled insofar as they concerned payment of interest because it was clear that Total and Elf Aquitaine had paid the fines that the Commission had imposed on them within the set time periods.

The Court of Justice ruled that the appeal by the Commission against the General Court’s judgment should be dismissed.  The ruling confirms that the companies paid the original fines in full and within the relevant deadlines, rendering the Commission’s request for late payment interest unlawful.

It is somewhat unfathomable that the Commission charged late payment interest on fines paid on time.  The ruling should embolden future litigants to challenge decisions that they believe to be unfounded, although the Court of Justice’s ruling comes after a long legal battle.

Case C-351/15 P - European Commission v Total and Elf Aquitaine, judgment of 19 January 2017