Austria to reclaim unlawfully granted COVID‑19 subsidies from businesses

The Austrian Supreme Court ruled that the 2.3 million‑euro cap on COVID‑19 state aid applies to an entire corporate group, not to each subsidiary individually. Payments that exceed this limit are considered illegal state aid under EU competition rules and must be repaid.

As a result, the Republic will demand the return of subsidies that were disbursed beyond the permitted threshold. While the decision supports fair competition, officials warn that the repayments could strain affected companies and potentially lead to insolvencies.

The ruling clarifies that the European Commission’s exemption for pandemic aid does not cover intra‑group overpayments, reinforcing the principle that aid must not give any competitor an undue advantage.