June 23, 2020 / 9:47 AM / 2 months ago

EU regulators to investigate Czech state aid for its postal operator

BRUSSELS, June 23 (Reuters) - EU antitrust regulators launched on Tuesday an investigation into about 282 million euros ($318 million) in Czech state aid granted to the country’s postal operator for providing a public service, concerned that Czech Post may have been over-compensated.

The move by the European Commission followed complaints from two rivals to Czech Post.

“The Commission has decided to open an in-depth investigation, in particular as it has concerns regarding the correct calculation of the net avoided cost of the universal service obligation. As a result, the Commission was not able to exclude the risk of overcompensation,” the EU executive said.

The Czech government may have to claw back the aid if it is found to have breached the bloc’s state aid rules ensuring a level playing field across the 27-EU countries.

$1 = 0.8859 euros Reporting by Foo Yun Chee and Marine Strauss;

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