France Telecom loses tax appeal

The European Court of Justice has ordered France Telecom to pay business tax it says it owes dating back to 1994, upholding a 2004 decision by the European Commission.

Seven years ago, the EC ruled that the company, Europe's fourth-largest telecoms operator, paid less business tax than it should have from 1994 to 2002. Commissioners considered that to be an illegal form of state aid.

That decision was upheld by the European General Court, which prompted France Telecom, which said it had already repaid €1.02 billion, to take its case to the highest court in the EU.

The European Court of Justice statement said: "The court confirms the judgment of the General Court finding that France Telecom benefited from state aid incompatible with the common market each year from 1994 to 2002.

"The Commission's decision finding that aid existed and ordering its recovery is valid."

More News

Telefónica signs up Red Hat for global enterprise mobility play Telefónica signs up Red Hat for global enterprise mobility play Telefónica has selected Red Hat software to be a global reference platform for its business customers looking to mobilise their internal processes. More detail
Ericsson, Huawei prosper in sluggish telecom outsourcing market Ericsson, Huawei prosper in sluggish telecom outsourcing market The telecom outsourcing market is set to slow during the next few years, new research has revealed. More detail
“Confident” BT identifies major cost savings, sets out two-year financial targets “Confident” BT identifies major cost savings, sets out two-year financial targets BT said it had identified significant cost savings as it revealed its latest financial figures. More detail
BT to invest £6 billion in fibre, 4G and customer experience BT to invest £6 billion in fibre, 4G and customer experience BT will spend £6 billion over the next three years to expand its fibre and 4G networks, and improve its customer experience. More detail
Proximus hit by fall in BICS revenues during Q1 Proximus hit by fall in BICS revenues during Q1 International wholesale arm BICS pushed down revenues at Proximus in the first three months of the year. More detail