The Dutch government has withdrawn its proposal to grant state aid to support R&D by Philips Electronics , the European Commission said. The decision ends an EC probe into the plan, which could have contravened competition laws.
The Dutch government had proposed funding of Ecu4 million in 1995 and further funding in 1996 to 1998, for a programme to develop chips and systems for the personal digital assistant market.
"In March 1998, the Commission's competition services proposed to forbid the granting of aid to Philips Semiconductors because the project was not eligible as R&D within the meaning of state aid rules," said an EC spokesperson.
"In addition, companies including Philips already have on the market a new generation of handheld consumer products which combine personal computer, organiser and communication functionalities," it went on.
The EC launched its investigation in July 1996 because of its doubts over the compatibility of the aid with EU state aid rules.
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