EU Investigates Slovak Post and Swan Cooperation for State Aid Compliance

The European Commission announced on Monday that it has launched an investigation to determine if the collaboration between state-owned Slovak Post and mobile network operator Swan adheres to European Union (EU) state aid regulations. The probe will assess whether the agreement signed in 2015 between the two entities raises concerns regarding state aid rules.

Under the agreement reached in 2015, Slovak Post assumed the role of promoting and selling Swan products, providing customer services to Swan’s clientele, and collecting fees and payments from Swan’s customers. The nature of this cooperation has raised questions within the EU Commission, prompting them to scrutinize whether the deal complies with state aid rules.

Source: EU Court Rules Deutsche Telekom’s Slovak Business Cannot Avoid Fine

The EU Commission expressed doubt about the conformity of the Slovak Post and Swan agreement with state aid regulations. The investigation’s primary focus is to ascertain if the terms and conditions of the agreement accurately reflect normal market conditions. Additionally, it aims to determine whether the selection of Swan by Slovak Post was transparent and non-discriminatory.

In their statement, the European Commission emphasized that state aid rules are in place to ensure fair competition in the EU’s internal market. Any violations or concerns related to state aid can distort competition, thus necessitating thorough investigation and potential corrective measures to rectify any anomalies.

Source: Reuters