7.3.98 Official Journal of the European Communities L 67/31 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 1 October 1997 concerning aid granted by France to Thomson SA and Thomson Multimedia (Only the French text is authentic) (Text with EEA relevance) (98/183/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Atrticle 93(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having, in accordance with the abovementioned Articles, given the interested parties notice to submit their observa- tions, Whereas: L. INITIATION OF PROCEEDINGS UNDER ARTICLE 93(2) OF THE TREATY By letter dated 10 February 1997 the Commission informed the French authorities of its decision to initiate proceedings (') under Article 93(2) of the EC Treaty in respect of measures to assist Thomson SA and Thomson Multimedia. The measures include the recapitalisation of Thomson SA, the parent of the public group Thomson, notified by the French authorities in October 1996 and amounting to some FRF 11 billion. By letter sent on 12 December 1996 to the Commission, the Finance () OJ C 90, 20. 3. 1997, p. 3. Minister, Mr Arthuis, stated that the planned recapitalisa- tion of Thomson SA would essentially benefit its consumer electronics subsidiary, Thomson Multimedia and would not affect is other large subsidiary, Thomson CSF, an industrial electronics group present in the defence sector which the French authorities undertook to privatise rapidly. Thomson Multimedia, a leading consumer electronics group, has experienced a series of shortfall years since the early 1990s, resulting in accumu- lated losses which totally used up the group’s own capital. The Commission had taken the view, in accordance with the principle of a private investor operating in a market economy which it applies in such cases that, in the absence at that stage of financial forecasts indicating that the invested capital would yield a return at market rates, a private investor would not have recapitalised the company; it could therefore be concluded that the meas- ures in question were likely to contain elements of State aid. Since the compatibility of the measures with the Treaty could be considered only under the exemption provided for in Article 92(3)(c) as they were intended to assist a firm in difficulty, their compatibility should be assessed under the Community guidelines on rescue and restructuring aid for firms in difficulty (3). On that basis, the Commission asked the French authorities in its Notice initiating the proceedings to submit a restruc- turing plan for Thomson Multimedia establishing the viability of the firm. The Notice also concerned the transfer to the State of shares in Crédit Lyonnais held by Thomson SA at a price likely to contain aid elements. The Commission had () OJ C 368, 23. 12. 1994, p. 12.