A senior adviser to the European Union's highest court said Tuesday that Germany had been excessively protecting Volkswagen.
If confirmed by the court's judges, the case could have a major effect on national authorities' ability to shield companies from unwanted takeovers and would give Porsche more control over Volkswagen, in which Porsche is the biggest shareholder.
Berlin's policy is "not based on overriding reasons relating to the public interest," the adviser, Dámaso Ruiz-Jarabo Colomer, advocate general of the European Court of Justice, said in a statement from Luxembourg.
Although his conclusion is not binding, the full court backs the advocate general in about 80 percent of the cases. A court ruling, expected this year, is seen as a test case to establish to what extent an EU government can protect companies it sees as vital to its economy.
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