Shearman & Sterling Antitrust partner James Webber discussed a recent decision of European Court of Justice (ECJ) in a case that resulted in a €32 million fine against the United Kingdom. The UK was fined by the EU’s top court for allowing pleasure boats to use lower-tax red diesel fuel.
James explained that although the UK left the economic bloc, it continues to be bound by some of its rules because Northern Ireland remains in parts of the EU single market.
“The UK remains subject to the jurisdiction of the ECJ and can be fined for failing to correctly implement EU directives in Northern Ireland, as has happened here in relation to fuel excise duties,” James told the Financial Times.
The ECJ decision could set a precedent for future disputes involving the UK, said the Financial Times.