| In Principle

The energy transition requires decisive actions in many sectors of the economy. This demands a legal framework enabling a shift away from fossil fuels and towards renewable energy sources. In September 2023, regulations for agricultural biogas plants went into effect which are expected to finally unleash Poland’s biogas potential.

Granting of state support in the EU, which businesses are increasingly taking advantage of, is based on a set of common principles. Mainly these include compatibility with the internal market, achievement of an objective of common interest, a clear incentive effect, proportionality, and full transparency. Violation of these rules when granting public support may mean a grant of unlawful state aid, incompatible with the common market and subject to recovery.

The newest episode of News from Poland is devoted to the topic of personal responsibility of management bodies for compliance with cybersecurity regulations and standards, particularly with the EU NIS2 Directive and its upcoming transposal to Polish law.
The subject is explained by Jakub Barański, adwokat and partner from the firm's Dispute Resolution Practice.

The country of origin principle is an effective tool for protecting providers of information society services. In the latest instalment in the controversies involving online platforms, the Court of Justice took their side, holding that the country of origin principle protects service providers with a subsidiary in the European Union. Only the state where they are established can exercise primary control over their activities, and other member states cannot impose additional obligations on them. Italy was recently challenged for infringing this principle in a set of cases decided by the Court of Justice. In the article below, we discuss the ramifications of the rulings by the EU’s top court.

The growing role of fashion in the world of video games was confirmed by the Roblox report published in November 2023 analysing the behaviour of Gen Z. The survey found that for 84% of respondents, digital fashion is an important part of the game, with 56% of respondents admitting that their avatar’s appearance is just as important to them as their own real-life appearance—up from 42% the year before.

In a controversial ruling, the Supreme Court of Poland has held that a party’s objective inability to bear the costs of arbitration may render an arbitration clause unenforceable within the meaning of Art. 1165 §2 of the Civil Procedure Code. This issue has already been addressed by leading courts in Finland, Germany, Portugal and the UK, and more broadly by the European Court of Human Rights.

The last two years in the public procurement market have been stormy. The Covid-19 pandemic and the war in Ukraine have caused a steady and dynamic increase in the prices of materials and services, and disrupted supply chains, translating into record inflation rates and unprecedented fee increases. With this tough economic situation directly affecting the market, contractors have faced the difficult task of indexing their fees in public contracts. The National Appeal Chamber, which hears challenges in public procurement matters in Poland, gave essential guidance on this issue in its ruling of 28 November 2023 (case no. KIO 3389/23).

Since the landmark Court of Justice ruling in 2009 in C-402/07, Sturgeon, it has generally been accepted that when it comes to the right to compensation from an air carrier under the Air Passengers Rights Regulation, a flight delay of more than three hours puts the passenger in the same position as if the flight were cancelled. But in 2024, the Court of Justice held in C-474/22, Laudamotion GmbH v flightright GmbH, that the case is not so clear-cut, and there are somewhat different rights and obligations associated with flight delay than with flight cancellation.

On 3 May 2024, Poland marked the third anniversary of submission of the first version of its National Recovery Plan to the European Commission. On the eve of that date, information was released on disbursement of the first funds under the plan, in the amount of c. EUR 6.3 billion. But this is not the only good news for those interested in financial support from European funds. Legislative work is also underway to help absorb funds the National Recovery Plan and other European funds.

Under the current Polish law, it is still possible to carry out projects based on permits for construction of wind power plants whether issued before or after 16 July 2016, but based on proceedings initiated before that date. Construction is still possible under the old conditions, before the later restrictions came into force. This could improve the unsatisfactory development of renewable energy in Poland. But how long will the old permits remain in effect, and must the projects be put into operation by 16 July 2024?

On 9 May 2024, the Office of Competition and Consumer Protection (UOKiK) published updated guidance on notifications to the regulator and conducting proceedings under the Control of Certain Foreign Investments Act. The amended provisions of the act, which significantly expanded the scope of its application, entered into force almost four years ago, in July 2020. At that time, the regulator was granted additional powers to protect Polish companies deemed vital for public order, security or health (as we discussed in the article “Control of certain investments: new protective provisions”). The regulator published its first guidance on the new rules in 2022.

A bill to implement the Corporate Sustainability Reporting Directive in Poland was published on 19 April 2024. The main implementation measure is the proposed new chapter 6c of the Accounting Act, entitled “Sustainability Reporting.”