RTE News has learned that the European Commission is to examine a complaint made by private bus operators against the Government.
The Coach Transport and Tourism Council claims unfair state aid is being given to CIE. A spokesperson for Dublin Bus said it invested funds as directed to by the State.
Private bus companies have been lobbying for a bigger slice of the market in providing public services. There has been significant debate about how much they should be allowed to take, with unions opposing a significant increase in commercial involvement.
Private firms say it is unfair CIE can receive public funds to buy buses which can run on routes competing with commercial firms. That, they claim, can distort competition. A report on the issue says Dublin Bus has bought 300 buses since 1999. The Commission has confirmed to RTE News that the issue will be examined.