FILE PHOTO: Attendees at Samsung Electronics Co Ltd’s Unpacked event test out the company’s new devices in in San Francisco, California, U.S., February 20, 2019 REUTERS/Stephen Nellis
BRUSSELS (Reuters) – EU antitrust regulators on Monday voiced doubts whether Budapest’s plan to grant 108 million euros ($119.2 million) to Samsung SDI’s battery cell production facility in Hungary complies with the bloc’s state aid rules.
The European Commission opened an investigation, saying that it has doubts whether the aid has an incentive effect and whether it will boost regional development. It also expressed concerns that the measure may lure jobs from other EU countries to Hungary.
Samsung SDI is investing around 1.2 billion euros to expand the factory to supply electric cars.
Reporting by Foo Yun Chee; editing by Jan Strupczewski