The European Union’s executive branch is examining the French National Lottery Company (FDJ) to ascertain if the choice to bestow upon FDJ a 25-year exclusive right to conduct lotteries and retail betting in France following its privatization breaches EU legislation.
FDJ has possessed these privileges since its establishment, initially indefinitely, as it was a government-owned monopoly. Nevertheless, in 2019, the organization was privatized via an initial public offering (IPO) for €1.89 billion.
No longer a state-owned entity, FDJ remitted €380 million (£325 million/$448.4 million) to the French government to retain the exclusive right to provide lotteries and retail betting.
However, this action has ignited two grievances asserting that the agreement contravenes EU state aid legislation.
According to EU law, member states are forbidden from granting “specific firms or sectors, or companies situated in a specific region” an advantage through interventions such as tax rates, in a manner that influences trade, although exemptions can be granted on a case-by-case basis, such as for state-owned monopolies.
The European Union’s executive branch is looking into whether the French national lottery firm, FDJ, is receiving an undue benefit from its present compensation framework. They aim to ensure the company’s remuneration aligns with industry norms.
The Commission asserts they haven’t determined if the company is engaging in any wrongdoing, but they desire to provide France and all stakeholders an opportunity to express their views on the matter.
FDJ maintains they have committed no violations and are eager to collaborate with the inquiry. They state they will furnish all required documentation to demonstrate their business practices adhere to both French and European legal standards.