POAHY Porsche Automobile Holding SE (PK)

By Clare Connaghan

BRUSSELS--The European Commission Wednesday opened an investigation into whether regional aid for German Porsche Automobil Holding SE (PAH3.XE) is in line with EU state aid rules.

"The Commission will check whether the aid is necessary and proportionate to provide an incentive for the investment and whether its contribution to regional development outweighs the distortion of competition," the European Union's executive said in a press release.

Last December, the German automaker applied for government aid for an investment project in Leipzig, in the region of Saxony.

Write to Clare Connaghan at clare.connaghan@dowjones.com