Plans to bail out French server and IT services company Groupe Bull SA have come under the scrutiny of the European Commission.

The Commission, the executive body of the European Union, launched an investigation Tuesday into government loans to Bull of EURO450 million (CDN$630 million), saying that it had doubts about the French government’s respect for the rules on state aid to companies in difficulty.

The French government notified the Commission in March that it planned to lend Bull EURO350 million to help the company restructure to overcome its financial problems. However, it had not previously notified the Commission of a EURO100 million loan made in December 2001.