France Telecom SA (FTE) reportedly lost its court appeal against a European Commission ruling, which forced the company to repay about EUR 1 billion, or US$1.5 billion, of state aid to the French government.
As per reports, the European Court of First Instance in Luxembourg rejected the company's and the French government's appeals after considering the tax concessions enjoyed by France Telecom from 1994 through 2002, which was a struggling period for the telecom group. The company was provided a special deal on direct local taxes including business tax. Special conditions were laid down regarding the rate, the base and the taxation arrangements.
The European Commission, which probed France's support for France Telecom when it was close to bankruptcy in 2002, ruled in 2004 that the tax benefits amounted to state aid and infringed European Union rules.
According to reports, the Commission did not fix exactly the amount that had to be recovered. However, it said the sum was somewhere in the range of EUR 798 million - EUR 1.14 billion, to which interest would have to be added from the date the company enjoyed the aid to the date on which the funds were recovered by the state. Two years ago, the European Court of Justice reportedly found that the government failed to implement the Commission's decision and get back the money.
Although the company and the French government tried to cancel the Commission's ruling through an appeal to the Court of First Instance, the Court upheld the commission's decision.
Reports also said that the company can appeal the decision to the European Court of Justice.
FTE closed Monday's trading at $26.33, up $0.02, on a volume of 424,500 shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.