The Advocate General’s Opinions in the Fiat State Aid Case: Underestimating the Arm’s Length Principle

In this article, the author undertakes a critical review of the Advocate General’s two Opinions in the State aid case against Luxembourg’s tax ruling regarding Fiat’s finance subsidiary. He urged the Court of Justice to overturn the General Court’s decision and annul the European Commission’s decision. The Advocate General failed to appreciate the Commission’s authority to rely on the arm’s length principle regardless of whether that authority derives from Luxembourg’s positive law or directly from EU competition law.