BRUSSELS (AP) - The European Commission has launched an investigation to determine whether Hungary violated EU competition rules by allowing more than 20 million euros ($22 million) in subsidies to a Budapest-based ground handling company.
The Commission said Tuesday it wants to find out whether financing measures “totaling approximately 21 million euros” granted by various Hungarian state-owned entities to Malév Ground Handling were in line with EU rules for struggling companies.
Malév Ground Handling is a former subsidiary of Hungary’s national airline, Malév, which went bankrupt in 2012. The commission says Malév Ground Handling has been struggling financially.
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The commission’s investigation stemmed from a 2017 complaint launched by a competitor that argues the subsidies received by Malév Ground Handling amounted to state aid and was against EU rules.
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