Oct 27 (Reuters) - The EU competition authorities said on Wednesday they had opened an in-depth inquiry into Greek state help for textile producer United Textiles (NAOr.AT) and its lending banks.
The European Commission said it was concerned that the company had received aid repeatedly since 2007, which might be in breach of the EU's rules.
"Governments are entitled to help firms in difficulties provided that they respect the EU's state aid rules. These rules ensure that competition is not unduly distorted," said EU Competition Commissioner Joaquin Almunia in a statement.
United Textiles is one of the largest textile companies in Greece and has been in difficulty at least since 2004, the statement said, adding that repeated state help might have given an inappropriate benefit to the company's lenders.