Press Release: State aid: Commission opens in-depth investigation into financial advantages to BT from UK Crown pension guarantee

The European Commission has opened an in-depth investigation under EC Treaty state aid rules on the effects of a UK Crown guarantee covering the pension liabilities of the BT Group plc on the EU telecommunications markets. The Commission investigation does not question the safeguards for BT's employees, introduced by the guarantee. The issue is a consequence of the guarantee where BT is exempted from certain common law financial obligations, such as the payment of a levy to the Pension Protection Fund. The investigation will enable the Commission to determine whether these exemptions constitute state aid and, if so, whether such aid could be found compatible under EC Treaty state aid rules. The opening of an in-depth investigation gives interested parties the opportunity to submit their comments to the Commission. It does not prejudge the outcome of the investigation.