Germany faces legal action by European Commission over VW anti-takeover law

The German government faces a legal challenge by the European Commission to a law aimed at preventing any takeover of Volkswagen (site in German), Europe's largest car company. The law, aimed at protecting jobs in Germany, grants a controlling minority share in the company to the German state of Lower Saxony and also prevents more than 20 percent of voting rights from going to any single investor. However, the Commission argues that the restrictions prevent jobs from migrating in violation of EU single-market laws, and it previously requested that Germany amend the law. Read an EU press release. The Commission has more on its monitoring of common-market laws. Deutsche Welle has coverage from Germany. BBC News has more.

 

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