The European Commission has opened an in-depth investigation to assess whether certain support measures for the German local public transport company WestVerkehr GmbH ("WestVerkehr") comply with EU state aid rules.
The investigation follows a complaint from a competitor that alleges that WestVerkehr has received aid incompatible with the internal market since 2007 in connection with its public service tasks in the district of Heinsberg.
The alleged aid measures are: (i) the direct award of a public service contract to WestVerkehr; (ii) a profit and loss transfer agreement between WestVerkehr and its majority shareholder; (iii) a payment into WestVerkehr's capital reserve by its minority shareholder; and (iv) a current account agreement between WestVerkehr and a company partly owned by the district of Heinsberg.
The Commission's preliminary view is that these four measures constitute State aid and do not appear to meet the cumulative criteria for exclusion from State aid law as compensation for public service obligations.
The opening of an in-depth investigation gives Germany and interested third parties, including the alleged aid recipient and the complainant, the opportunity to submit their comments.
For further information, see the Commission's press release.