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Transport groups ask Commission to eye state aid

BRUSSELS, June 29 (Reuters) - Two European transport associations called on the European Commission on Tuesday to beef up its checks of state-controlled logistics companies, saying they had an unfair advantage over smaller sector peers.

The French and German industry groups presented a "white paper" to Transport Commissioner Loyola de Palacio's cabinet outlining their complaints.

"The existence of private European transport and logistics groups is being threatened by unfair competition from state and partly state-owned companies in the sector," the groups said in a statement.

The groups said the state-controlled companies were using access to public funds to finance acqusision sprees at "unfair prices." They called on the Commission to hold faster and more systematic checks of aid given to companies that are state-owned.

A spokesman for de Palacio confirmed the report had been received.

In 2002 the Commision ordered Deutsche Post to pay back 572 million euros ($696.4 million) in state aid plus interest to the German government, its majority share-holder.

Deutsche Post paid but denied wrongdoing and is fighting the decision.

The white paper was presented by French association H.A.L.T.E and German group Wettbewerbsverein.