Inability to pay - European Commission
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Law
Competition Policy

Inability to pay

Article 23(2) of Regulation 1/2003 provides that the European Commission may impose fines on undertakings or association of undertakings when they infringe Articles 101 or 102 TFEU. 

If there is a high risk that the payment of the fines causes the undertaking’s insolvency, the undertaking in question can request that its economic and financial situation be taken into account by the Commission when calculating the fine.

Granting a reduction for “inability to pay” is subject to very strict conditions, as spelled out in point 35 of the Fining Guidelines.

  • A reduction could be granted solely on the basis of objective evidence that imposition of the fine as provided for in the Guidelines would irretrievably jeopardise the economic viability of the undertaking concerned.
  • The fine causes the undertaking’s assets to lose all their value.
  • There needs to be a specific social and economic context.

The application must be done formally.