A PYMNTS Company

Germany: State ordered by EC to recover wood state aid

By  |  November 6, 2013
Germany: State ordered by EC to recover wood state aid

Aid given to wood processor HoKaWe was ruled illegal under state aid law by the European Commission, say reports, resulting in a ruling that orders the German government to recover the funds.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The regulator announced the completion of its investigation into an agreement in which German Land Brandenburg delivered wood to HoKaW, finding that the deal offered an unfair economic advantage for the company.

    The Commission has now ruled the company must pay back $3.25 million, as well as interest.

    In a more in-depth explanation, the Commission said that the companies’ 2006 agreement included flawed wood price adjustments intended to reflect price fluctuations of the German wood index.

    Full content: 4-Traders

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.