(Adds VW comment, share price)
LUXEMBOURG, Sept 30 (Reuters) - The European Union's top court on Tuesday upheld a ban on German government subsidies to auto giant Volkswagen AG to build car plants in east Germany in the 1990s.
The European Commission's competition watchdog in 1996 blocked 240 million Deutschmarks of state subsidies. The EU's Court of First Instance supported the decision in 1999, saying that Europe was building too many cars already.
The lower court added that Germany did not have a blanket right to give money to East Germany, where communist-era Trabant cars could not compete with western vehicles. The European Court of Justice said that it confirmed the lower court's decision.
A spokesman for Volkswagen said the decision would have no financial impact. The decision did not harm VW shares.
"The judgment will have no effect on VW's results and no practical consequences," said the spokesman.
Volkswagen shares were trading 0.96 percent lower at 39.12 euros by 0934 GMT, slightly underperforming the European automotive sector which was 0.26 percent lower.