Austria’s top court has issued a landmark ruling that could force many companies to repay millions in COVID-19 aid, raising fears of business failures across the country.
In a decision announced on April 28, 2026, the Supreme Court (OGH) ruled that European Union limits on state aid apply to entire corporate groups, not to individual subsidiaries. This means companies that received aid through multiple branches may have been overpaid under EU law.
During the pandemic, Austria often calculated financial support separately for each company within a larger group. However, EU rules set a maximum of 2.3 million euros per company group. By treating subsidiaries as separate entities, Austria exceeded these limits, the court found.
The case that led to the ruling involved a chain of highway service stations. The company argued that it had accepted the funds in good faith, relying on national guidelines. But the court rejected this defense, stating that EU law requires authorities to recover any illegal aid, even if businesses believed they were acting correctly.
For the government, the ruling could bring in significant repayments. In the service station case alone, excess aid of 1.42 million euros was identified and offset against pending payments.
Lawyers representing affected companies warn that the financial impact could be severe. Attorney Harald Strahberger expects a wave of repayment demands from tax authorities and cautions that some businesses may face insolvency. Another lawyer, Georg Eisenberger, described the ruling as “brutal” and potentially life-threatening for many firms.
The full scale of repayments remains unclear. Some companies may be able to switch to other support schemes, such as compensation for losses. Meanwhile, a pending case at the European Court of Justice may further clarify whether EU decisions should have been officially translated at the time.
