A formal inquiry into subsidies that Dublin Bus and Bus Éireann receive from the Government has begun at the European Commission.
The subsidies cover not only operating costs but also the replacement and expansion of the bus fleets of both companies, and grants for investment in infrastructure and training.
The inquiry follows a complaint from a representative body of private bus operators to the Commission.
In a statement today the EC's transport directorate said it had doubts about whether the annual subsidy is in line with state aid rules, especially those related to public service obligations.
The EC also doubted whether grants were compatible with the Common Market, especially as dedicated bus infrastructure such as bus stations, garages and maintenance facilities are not available on an equal basis to all potential bus operators.
Private bus operators also complained about training grants made available to Bus Éireann and Dublin Bus, but the commission said it lacked the information to take a position at this stage.
