| In Principle

A proposal to cut red tape for businesses in Poland could backfire against contractors in procurement appeals.

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.

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.”

The dispute over the Polish Constitutional Tribunal is ongoing and escalating. Even suggesting that the Constitutional Tribunal still exists and functions in Poland is risky, as it can be seen as taking sides in the dispute. The tribunal has recently dealt with politically charged cases, but a ruling handed down on 8 May 2024 was apolitical and resolved a nagging issue that had been on the tribunal’s docket for years.

The newest episode of News from Poland is about who may be held liable for tax offences committed at a company. The issue is explained by Jakub Znamierowski, PhD, adwokat and senior associate in the firm's Criminal Law Practice.  

The number of decisions by the chairman of Poland’s National Broadcasting Council imposing fines on media service providers for broadcast violations has risen dramatically over the last five years. These decisions involve content standards (respect for law, public order, morality, religious beliefs), protection of minors, and improper language. In 2011–2018, an average of three decisions imposing fines on providers were issued per year. Between 2019 and 2023, this figure leapt fourfold, to an average of 12 per year, and in 2023 there were more than 20. Fines for content harmful to minors are particularly noteworthy for their frequency and problematic nature.