The young man did not host the files on his webspace, he just linked to files on other sites.
While a lower court had decided that the student, whose name was not published by the supreme court ruling, had violated copyright, an appeal court later overturned the decision, ruling that the copyright violation had occurred when others posted the mp3 files, not when he linked to them.More info at DM Europe
However, the supreme court disagreed, finding that the student was abetting piracy and has ordered the defendant to pay record labels €12,200 in compensation.