LLF Flash Notes – July/August 2025

Date: 29th August 2025

Competition Law Notes@Greece

Statement of Objections Concerning Abuse of Dominance in the Market for Online Price Comparison Platforms

01/29
The Hellenic Competition Commission (“HCC”) will convene on 23.10.2025 to examine whether Skroutz SA (“Skroutz”) has abused its dominant position in the market for online price comparison platforms. According to the Statement of Objections (“SO”), certain pre-defined, non-negotiable terms unilaterally imposed by Skroutz since 2020 in its agreements with business users may harm both the interest of these users and consumers. According to the SO, these terms are alleged to be neither necessary for the achievement of Skroutz’s commercial practices nor proportionate to the objectives pursued.

Statement of Objections Concerning Possible Vertical Restraints in the Markets for School Accessories, Toys and Electrical Household Appliances.

02/29
The HCC will convene on 4.11.2025 to assess whether certain vertical agreements, concluded since 2017 between Public Retail S.A. (“Public”) and specific suppliers, infringe competition law, as well as to evaluate the commitments offered by Public to address competition law concerns arising from these agreements.

According to the SO, the agreements in question include a price protection clause triggered when competing retailers reduce their prices. This clause may lead the contracting supplier to engage in resale price maintenance with its distribution network. Public has offered a set of commitments, including, inter alia, the removal of the contested clause. According to the SO, the proposed commitments fully address the potential competition concerns identified in the relevant markets.

Regulatory Intervention in the Petroleum Sector –Publication – HCC’s Second Interim Report and Public Consultation on Proposed Measures

03/29
As part of its ongoing regulatory intervention in the petroleum sector and following the publication of its First Interim Report, the HCC has now published its Second Interim Report. In this report, the HCC proposes a set of measures aimed at establishing conditions of effective competition in the sector. It also invites all interested stakeholders to participate in the public consultation on these proposed measures, which will conclude on 26.09.2025. The measures suggested by the HCC are intended to (i) increase the intensity of the competition at the refining level by facilitating imports, (ii) mitigate the risk of tacit collusion in the refining stage, and (iii) enhance market transparency to the benefit of consumers. The proposed measures are summarised as follows:

(i) Establishment of an Independent Central Stockholding Entity, supervised by the Regulatory Authority for Energy, Waste and Water, to facilitate the maintenance of emergency stocks in case of imports by non-vertically integrated wholesalers;
(ii) Creation of a reliable inventory for the monitoring and oversight of storage facilities for petroleum products, managed by a competent institutional body;
(iii) Non-inclusion of exclusivity clauses in future agreements for fuel storage and related services in facilities owned by third parties;
(iv) Reduction of price transparency at the refining level, notably by notifying petroleum product selling prices for the domestic market through individual communication to trading companies, rather than public disclosure;
(v) Enhancement of price transparency at the retail level, through the development of a digital application that provides real-time, user-friendly price information to consumers.

Sector Inquiry on Private Health Services and Related Insurance Services – HCC’s Final Report

04/29
The HCC issued its final report on the sector inquiry into private health services and related insurance services, which examined the prevailing conditions of competition, as well as the applicable regulatory framework.

Key findings include:

> As regards private health services:

• Demand for private healthcare is rising amid pressures on the public system;
• Market concentration remains moderate, while recent acquisitions by foreign investment funds have not materially changed market concentration;
• The coexistence of three parallel licensing regimes causes regulatory asymmetries, distorting competition;
• It is noted that further streamlining of the regulatory framework may be necessary to facilitate capacity expansion of private clinics.

> As regards private health insurance services:

• The sector shows steady growth with a shift from long-term to annually renewable contracts;
• Concentration is moderate; insurers contract with leading hospital groups, often via a small number of management companies;
• No barriers to entry are recorded, while the HCC underlines regulatory gaps in the oversight of the above management companies.

> As regards costs & pricing:

• An Increase of healthcare and insurance costs is recorded due to, inter alia, an increase in the volume of services, aging and costs of hospital care in private hospitals;
• Lack of transparency and discriminatory pricing practices hinder comparability;
• It is noted that the replacement of the Single Health Index by the new Annual Adjustment Index (AAI) may give rise to risks of reduced competition and facilitate tacit collusion.

> As regards consumer transparency:

• Asymmetric information remains a core issue. It is proposed that the services/products in the price lists be standardised in order to further facilitate price comparisons by consumers.

> As regards data & technology:

• Access to health data may foster innovation but risks competition distortions and discriminatory practices.

The HCC underlines that competition considerations should be incorporated into public policy making and has published a guide on this issue.

Competition Law Notes@EU

European Commission’s Informal Guidance on SEP Licensing Group and Green Procurement Deal and Opinion on the Compatibility of a Sustainability Agreement with Competition Rules for Agriculture

05/29
In July 2025, the European Commission (“Commission”) issued:
Two comfort letters, providing legal certainty to the following initiatives:

(i) a joint licensing negotiation group for standard essential patterns in the automotive sector; and
(ii) a green procurement alliance for battery-powered port equipment.

These are the first guidance letters issued under the Commission’s revised 2022 Notice on Informal Guidance, a tool specifically aimed at addressing novel or uncertain legal issues under articles 101 and 102 TFEU.

Its first formal positive opinion on a sustainability agreement among French winemakers, following a request for opinion under Article 210a(6) of Regulation (EU) No 1308/2013 (the Common Market Organisation Regulation).

Commission Accepts Corning’s Commitments to Address Allegations of Competitors’ Foreclosure

06/29
On 18.07.2025, the Commission closed its Article 102 investigation into Corning by accepting a nine-year, worldwide set of commitments under Article 9 of Regulation 1/2003.

The case concerned Corning’s alleged foreclosure of rival producers in the worldwide market for alkali-aluminosilicate (“Alkali-AS”) cover glass – marketed primarily under the Gorilla Glass brand – for handheld devices. The Commission had provisionally found that Corning held a dominant position in this market and raised concerns that it may have abused its dominant position by entering into exclusive supply agreements with original equipment manufacturers (“OEMs”) and finishers.

To alleviate Commission’s concerns Corning offered the following commitments:

(i) Removal of exclusivity: All exclusive dealing clauses with OEMs and finishers will be eliminated;
(ii) No sourcing requirements in the EEA: Within the EEA, Corning shall not oblige OEMs (or their supply chains) to purchase any quantity of Alkali-AS or clear glass-ceramics from it, nor shall it link any price incentives to such purchases;
(iii) Cap on sourcing requirements by OEMs: Corning shall neither require OEMs (or their supply chain) to source more than 50 % of their worldwide demand -whether total cover glass or any segment thereof (LAS glass or clear glass-ceramics) – from Corning, nor link any price incentives to such sourcing requirements;
(iv) Cap on sourcing requirements by finishers: Finishers shall not be obliged to source more than 50 % of their worldwide cover-glass demand (whether NAS, LAS or clear glass-ceramic) from Corning, nor shall it link any rebates to such sourcing levels;
(v) Patent enforcement limits: Corning’s enforcement of its patents shall be restricted to infringement actions, excluding breach of contract claims;
(vi) Anti-circumvention clause: A standard anti-circumvention clause will be included, with detailed interpretation provided in an annexed note;
(vii) Dissemination of commitments: Corning will circulate a notice in English and Mandarin to OEMs and finishers, setting out the content of the commitments

Commission Fines Alchem in first Cartel Case Involving a Pharmaceutical API

07/29
On 04.07.2025, the Commission fined Alchem and its subsidiary for their participation in a long-running cartel concerning the active pharmaceutical ingredient (“API”) SNBB, used in the production of Buscopan and its generic equivalents.

In particular, over a period of 12 years, Alchem coordinated with other SNBB producers to fix minimum sales prices for SNBB charged to distributors and generic drug manufacturers, and to allocate annual sales quotas. Alchem also exchanged commercially sensitive information related to SNBB pricing and related factors.

This decision concludes a “hybrid” infringement procedure, following the Commission’s earlier settlement agreement with six other cartel pharmaceutical companies in October 2023.

Commission Seeks Feedback to Update Antitrust Enforcement Procedures

08/29
On 10.07.2025 the Commission launched the process to revise Regulation 1/2003 which sets out the procedural framework for the enforcement of EU antitrust rules. As part of this initiative, the Commission published a call for evidence and a public consultation questionnaire, both open for feedback from 10.07.2025 to 02.10.2025. Key topics under consultation include: (i) the scope of the Commission’s investigatory powers, including the power to conduct remote inspections; (ii) the scope of the Commission’s decision-making powers, in particular the conditions and procedures for adopting interim measures and commitment decisions; (iii) possible revisions to the procedure of access to file rights, including the use of confidentiality rings; and (iv) enhanced cooperation with national competition authorities.

General Court Partially Annuls Commission’s Dawn Raid Decision Against Michelin

09/29
In its judgement in case T-188/24, the General Court of the European Union (the “General Court”) held that the Commission lacked sufficient evidence to justify an onsite inspection in Michelin’s premises with respect to part of the alleged price-fixing period mentioned in the decision ordering the inspection. As a result, the Court prohibited the Commission from relying on the information seized that covered that timeframe in its investigation. In particular, while the General Court confirmed that the Commission had demonstrated adequate grounds to conduct the inspection for the main infringement period, it annulled the inspection decision insofar as it related to the earlier part of the alleged infringement. The Court found that the Commission had failed to present “sufficiently serious indicia” of anticompetitive conduct for that earlier period.

This ruling sets an important precedent, clarifying the limits of the Commission’s investigative powers, particularly with respect to the evidentiary threshold required to justify inspections under Article 20(4) of Regulation 1/2003.

General Court Confirms Credit Suisse’s Participation in Spot-Trading Cartel but Reduces the Fine

10/29
In its judgement in Case T-84/22, the General Court confirmed that Credit Suisse had participated in an anticompetitive agreement in the spot-trading sector. However, it found that the Commission erred in determining the proxy for the value of Credit Suisse’s sales, a key factor in calculating the amount of fines for competition law infringements.

According to the General Court, the applicants rightly argued that the data relied upon by the Commission were less complete and reliable than the figures Credit Suisse had submitted during the administrative procedure for that same purpose. The General Court found that the Commission failed to comply with its own Guidelines on the method of setting fines, which require the Commission to rely on the best available figures when determining the value of sales. As a result, the Court found that the Commission miscalculated the basic amount of the fine and it annulled the contested decision in part, reducing the amount of the fine imposed on Credit Suisse.

Request to the CJEU for a Preliminary Ruling on Manager Liability for Cartel Fines

11/29
On 11.02.2025, the German Federal Court of Justice referred a preliminary question to the Court of Justice of the European Union (“CJEU”) concerning whether companies may seek recourse against company directors for cartel fines imposed under EU competition law. The referral stems from a steel cartel case where German national courts had rejected the company’s claim to recover the amount of the fine and related costs from its managing director. The courts reasoned that allowing such claims could undermine the deterrent effect of corporate fine under EU competition law.

The CJEU’s forthcoming decision will have significant implications for director liability and insurance for antitrust coverage for antitrust violations under German law and could potentially establish a broader precedent for companies across the EU seeking to claim compensation from directors for competition law infringements.

Merger Notes@Greece

First Prohibition decision by the HCC of a Concentration in the Private Vocational Education Sector over Dominance Concerns

12/29
By decision no. 887/2025, the HCC, sitting in Plenary and by majority, prohibited the proposed concentration involving the acquisition of sole control by Alphabet over Delta.

Alphabet and Delta operate Higher Vocational Education Schools (IEK AKMI and IEK DELTA respectively) and are the leading providers of vocational training services in the geographical markets of Attica, Thessaloniki and Volos. According to the HCC, the transaction raised serious competition concerns as it would result in the creation of a dominant or even super-dominant position in the relevant markets. In particular, the Commission found that the transaction would result in: (i) the elimination of Alphabet’s major competitor; (ii) the establishment of an undisputable market leader in the above markets; (iii) significant barriers to entry for potential competitors and to expansion by incumbents; (iv) an increased risk for higher prices and lower quality of services for consumers.

This is the first decision by the HCC prohibiting a concentration since 1995.

Merger Notes @EU

Commission sends SO to Vivendi Alleging Possible Breach of Obligations due to Early implementation of Videndi/ Lagardère Merger

13/29
The Commission has formally informed Vivendi of its preliminary finding that the company has breached both the notification and standstill obligations under the EU Merger Regulation (“EUMR”), as well as the conditions and obligations attached to the Commission’s conditional clearance decision granted in June 2023.

According to the Commission’s investigation, Vivendi engaged in a series of actions indicating it exercised decisive influence over Lagardère at three critical stages of merger proceedings: (i) prior to the notification of the transaction to the Commission; (ii) between the notification and the Commission’s conditional clearance decision; and (iii) between the Commission’s conditional clearance decision and the Commission’s last buyer approval decision. The Commission alleges that Vivendi’s actions included close monitoring and repeated intervention in Lagardère’s key operational decisions, notably: (i) strategic decisions regarding the editorial line and the covers and articles of Lagardère’s magazines and newspapers; (ii) HR decisions for these publications; (iii) the programme scheduling of Lagardère’s radio station Europe 1; and (iv) decisions concerning the recruitment and dismissal of personnel related to the radio station.

The General Court Upholds the Commission’s Decision to Examine at the Request of Luxembourg the Acquisition of Boissons Heintz

14/29
In a recent judgement, the General Court upheld the Commission’s broad discretion to accept referral requests under Article 22 of the EUMR from national competition authorities (“NCAs”) to review transactions, even in cases where the transaction does not meet EU notification thresholds and the referring NCA does not have a national merger control regime.

The judgement concerns Brasserie Nationale’s acquisition of Boissons Heintz, which was referred to the Commission by Luxembourg’s Competition Authority under Article 22 EUMR. The General Court confirmed that Article 22 EUMR remains available to Member States without national merger control regimes, provided that: the referral is based on sufficient information, and it is made within 15 working days from the date on which the concentration was “made known” to the Member State concerned. Also, importantly, the Court clarified that “making known” requires an active transmission of relevant and sufficient information to the competent authority of the Member State concerned. Mere awareness of the transaction (such as from a press release or through a not detailed communication from the parties) does not suffice.

The judgement provides helpful guidance and clarifies aspects of Article 22 that remained unsettled following the CJEU’s judgment in Illumina/Grail

DMA Notes

Consultation on the First Review of the Digital Markets Act

15/29
The Commission has launched a consultation as part of the first review of the Digital Markets Act (“DMA”). The objective is to gather feedback and evidence on the effectiveness of the DMA so far in achieving its core goals of ensuring contestable and fair digital markets. The consultation is open until 24.09.2025 and targets business users, especially SMEs and end users of gatekeeper platforms.

FSR Notes

Commission issues draft foreign Subsidies Regulation Guidelines

16/29
The Commission has launched a public consultation on a draft guidelines on application of the Foreign Subsidies Regulation (“FSR”). These draft guidelines aim to clarify how the Commission will assess whether foreign subsidies distort competition within the EU internal market, particularly in the context of mergers and acquisitions and public procurement procedures. The guidelines introduce a two-step framework: first, whether the foreign subsidy improves the competitive position of a company in the EU, and second, whether the subsidy has—or capable of having —a negative effect on competition in the internal market. The draft also details the Commission’s approach to the “balancing test,” whereby any negative effects on competition are weighed against potential positive effects. Moreover, the draft provides more transparency on the Commission’s power to “call in” transactions or bids that fall below the reporting thresholds. Notably, it confirms that even non-specific or broadly available subsidies granted by non-EU countries may trigger review if they support competitive economic activity in the EU.

Interested stakeholders may participate in the consultation until 12.09.2025. The final guidelines are anticipated in January 2026.

Commission launches review of the FSR

17/29
In addition to the above, the Commission has launched its first review of the FSR, which includes a public consultation and a call for evidence. The review focuses on the criteria for assessing foreign subsidies that distort the internal market, the application of the balancing test, the power to initiate ex officio proceedings, the notification thresholds, as well as means for addressing regulatory complexity and compliance costs.

Interested stakeholders may give their feedback until 18.11.2025.

EU Probes ADNOC’s Covestro Takeover Over Foreign Subsidy Concerns

18/29
The Commission has opened an in-depth investigation under the FSR into ADNOC’s acquisition of Covestro. The Commission has concerns that financial support from the United Arab Emirates, including an unlimited guarantee and a capital increase, may constitute foreign subsidies that enabled ADNOC to buy Covestro on potentially distortive terms, thereby undermining fair competition within the EU internal market. The investigation will determine whether these subsidies distorted the bidding process for Covestro or could negatively influence competition in the EU post-transaction. The Commission’s decision is expected early December 2025.

State Aid Notes

Commission Seeks Input on Review of the State Aid General Block Exemption Regulation and of the 2014 Rescue and Restructuring State aid Guidelines

19/29
The Commission has launched a call for evidence and a public consultation, open from 14.07.2025 to 6.10.2025, to gather input on the scope and content of its upcoming review of the General Block Exemption Regulation. The review seeks to streamline administrative burdens for both companies and Member States, while ensuring that essential State aid effectively reaches industry. Importantly, the Commission emphasises that the EU State aid framework will continue to safeguard a level playing field across the internal market.

In addition to the above, the Commission has launched a call for evidence and a public consultation to revise the 2014 Rescue and Restructuring State aid Guidelines. The review is expected to cover: (i) the expansion of the scope to the steel sector; (ii) amendments to the definition of “undertaking in difficulty” (“UiD”) for certain innovative start-ups; (iii) clarifications of elements of the UiD definition; and (iv) technical changes reflecting EU Courts’ case law. Stakeholders may respond until 14.11.2025.

FDI Notes

Guidance on Greek FDI – Temporary Filing Suspension

20/29
On 8th August, an announcement was published on the website of the Ministry of Foreign Affairs regarding the enforcement of the Greek Foreign Direct Investment (“FDI”) regime (“Announcement”).

According to the Announcement:

• Adoption of Secondary Legislation: The Joint Ministerial Decisions (“JMDs”) provided by Law 5202/2025 setting out procedural details and the enforcement mechanism for the administrative fines are at the final stage of preparation and will be issued shortly.
• Temporary Filing Suspension: Until the above secondary legislation is adopted, the FDI Secretariat shall not accept FDI filings. Administrative fines provided for under Article 15 of Law 5202/2025 for failure to notify an investment that falls within the ambit of Law 5202/2025 will not be imposed for the period prior to the entry into force of the above secondary legislation.

In addition, an initial interpretative guidance on Greek FDI regime was issued.

Key takeaways include:

• Scope of the Greek FDI regime: All FDIs in the sectors designated as sensitive and highly sensitive under Law 5202/2025 are subject to screening, as all assets, goods, services, etc. are considered “necessary” within the meaning of Law 5202/2025.
• Notification Form & Supporting documentation: The Announcement refers to the EU Regulation 2019/452 “Request for Information from the Investor” regarding the main contents of the notification form and includes a provisional list of supporting documents.
• Filing of Notification: FDI screening applications must be submitted by the investor, their representative, or proxy, prior to the completion of the FDI transaction. Submissions must be made in an open envelope containing the filing form, declarations, supporting documents, and a digital copy on a USB stick. The envelope must be sealed in the presence of the Ministry of Foreign Affairs official receiving it, who in turn will issue a protocol number. In case the application is submitted by registered post, the five-day initial review (scope and completeness check) begins upon receipt.

Corporate Notes

Joint Ministerial Decision No. 9249/ 2025: Workplace Diversity Awareness Program

21/29
Joint Ministerial Decision No. 9249/ 2025 (Government Gazette B’/ 01.07.2025) sets out the content and the implementation terms of the “Awareness Program for Company Employees on Diversity and Combating Discrimination in the Workplace”

The program applies to private sector employees and is conducted in accordance with Article 9b of Law 4604/2019, which promotes substantive gender equality in the workplace.

In particular, the program is carried out remotely, offering interactive training that includes the completion of educational material and an assessment with multiple-choice questions. Upon completion of the program, a certificate of attendance is awarded to participants, while the provision of a special-purpose compensation is also foreseen.

Joint Ministerial Decision 46982/2025: New criteria and fines for GEMI non-compliance

22/29
Joint Ministerial Decision 46982/2025 (Government Gazette 3542/B/08.07.2025) introduces administrative fines for natural and legal persons who fail to comply with their obligations in relation to the General Commercial Registry (GEMI) pursuant to Law 4919/2022. The decision is structured into three main parts: (a) determining which types of companies are subject to GEMI registration requirements and which are not, (b) the relevant deadlines for fulfilling these obligations, and (c) the administrative fines applicable to each type of violation.

By order of the Ministry of Development, a transitional compliance period is granted until 31-12-2025, during which businesses are required to complete their registration and any pending entries in GEMI.

The imposition of fines will take effect from 01-01-2026, with amounts ranging from €100 to €100,000, depending on the severity of the violation. The grounds for imposing a fine include:

• the omission, late submission, non-compliant, or incorrect submission of an application for registration at GEMI,
• failure to correctly follow procedures during the electronic incorporation of a company via the One-Stop Service (YMS),
• non-compliance with the rules for automatic reservation of trade name and distinctive title, and
• omission to include mandatory information on the company’s official documents.

This new Joint Ministerial Decision aims to enhance transparency and ensure business compliance with the existing legal framework, strengthening GEMI’s role as a core tool for monitoring and recording business activity in Greece.

Employment Notes

New Draft Bill on the Modernisation of the Labour Framework

23/29
The Ministry of Labour and Social Security has launched a public consultation, running from 25 August to 19 September, on the draft bill entitled: “Fair Work for All: Simplification of Legislation – Support for Employees – Protection in Practice”.

The proposed legislation is structured around the following eight key pillars:

• Streamlined Hiring Procedures:
  Completion of recruitment notification requirements through a single document.

• Reduction of Bureaucracy:
  Abolition of paper-based documentation in employment processes.

• Modernisation of Labour Provisions:
  Introduction of the option to work, by exception, up to 13 hours per day for the same employer, subject to a 40% wage premium.

• Enhanced Employee Protections:
  Provision of allowances, strengthening of maternity leave entitlements, and safeguards against potential wage reductions following the implementation of the digital work card.

• Health and Safety Regulations:
  Introduction of new measures to promote and safeguard employees’ health and safety at work.

• Ratification of International Labour Organization (ILO) Instruments
  
• Strengthening of Labour Inspection Mechanisms:
  Reinforcement of the Labour Inspectorate through stricter penalties for non-compliance.
  
• Social Security Provisions:
  Extension of exemptions from surcharges on insurance contributions for benefits provided under collective labour agreements, including those granted voluntarily by employers.

Tax Notes

Taxation of Private Individuals; 2026 Reforms at a Glance

24/29
The Greek Prime Minister, in his keynote speech at the Thessaloniki International Fair, announced a €1.6 billion package, featuring income-tax cuts across all brackets above €10,000 (tax rates being reduced by 2 percentage points), zero income tax for individuals up to 25 years old with income up to €20,000, and a 9% income tax rate for ages 26–30 with income up to €20,000. Families with children receive targeted relief (on the €10k–€20k band: 22%→18% for families with one child, 22%%→16% for families with two children, 22%→9% for families with three children and zero tax for larger families with four or more children). A new income/tax rate band is introduced allowing for taxation at 39% on the €40k–€60k income band.

The package also includes a substantial reduction in tax on rental income (€12k–€24k rental income is subjected to tax at 25%), as well as a reduction on deemed income based on real estate and private use vehicles held.

A 30% VAT cut for small islands (population <20,000), abolition of ENFIA (property tax) in villages/remote areas, and an extension of the tax credit for energy/building upgrades through 2025–2026 are further announced. Measures will be incorporated in the 2026 budget and will apply January 2026 onwards.

AADE Circular E.2039/2025 — VAT Exemption for Export-Related Transport Services

25/29
Tax Administration provides technical guidance on applying the Art. 29(1)(e) VAT Code (Law 5144/2024) exemption to transport services directly linked to exports, detailing required evidence, how the roles of carrier vs. freight forwarder interrelate, and the documentation chain to substantiate the direct link—key for audits and VAT refund claims.

AADE Circular E.2064/2025 – Tax Deregistration of Inactive Entities and Legal Persons (Article 16 of L5104/2024)

26/29
Tax Administration clarifies the effective time of tax deregistration of inactive entities and legal persons, resolving thus a long pending issue. According to relative interpretative provisions, the time an entity/ legal person is dissolved and/or enters into liquidation is not conclusive for its tax deregistration. Tax deregistration may be effective prior to its dissolution and/or liquidation, provided the entity/ legal person had no economic activity after the deregistration time so claimed and had no property (e.g. assets, stock, merchandise) at the time it was dissolved and/or put into liquidation.

AADE Circular E.2055/2025 – Penal Charges for Non-Payment of Tax Debts (Article 25 of L 1882/1990)

27/29
Tax Administration clarifies the scope of application of new provisions re the imposition of penal charges for non-payment of tax debts, and the impact of a payment settlement on the penal prosecution process. Emphasis is given on the retroactive effect of new provisions, allowing for their application to pending cases as at April 11, 2025.

CJEU Judgment – Högkullen (C-808/23) 03.07.2025 on Article 72 of Dir 2006/112/EC

28/29
In judgment C-808/23 (Högkullen AB v Skatteverket) of 3 July 2025, the Court of Justice of the European Union (CJEU) held that tax authorities may not automatically treat a parent company’s services to its subsidiaries as a single, indivisible supply that would preclude use of the market-comparison method to determine the “open market value” under Article 72 of Directive 2006/112/EC. The Court emphasized that such services (administrative, financial, real-estate management, investment, IT, and HR), even when sold as a bundle, may be distinct and identifiable, allowing application of the comparative method. Accordingly, authorities must demonstrate that the supplies are objectively inseparable before resorting to the fallback full-cost method under Article 72(2).

Council of State Decision no 429/2025 (ΣτΕ 429/2025) on VAT Prorata Rules

29/29
Council of State decision no 429/2025 affirmed that the application of the method of allocating common costs based on actual use, may only apply provided a prior approval to this end is granted by the tax authorities, following a relative request. A private charity organization was denied VAT deduction based on actual use argumentation not supported by a tax authorities’ approval. Deduction of VAT incurred for legal and technical advice related to the construction of buildings, was further disallowed, as the Council considered that relative expenses were neither directly related to the taxable activities pursued nor could be treated as falling within the scope of investment goods or common expenses.

The contents on the LLF Flash Notes have been prepared for general information purposes only and do not constitute legal advice, legal opinion or professional advice. For specific legal or professional advice on any topic or additional information, please contact:

Katerina Malanou
Lefkothea Nteka
Smaro Anagnostou