The French government wants to give its flagship telecom company a loan of 9 billion euros ($9.4 billion in U.S. dollars) that would later be converted into shares held by a public-sector holding company.
France Telecom, Europe's second-largest telephone company, maintains that doesn't constitute state backing. It already has 70 billion euros ($73 billion) in debt.
Competition commissioner Mario Monti will ask the full commission to approve the opening of proceedings because "this is a very difficult and big case" and investigators would like input from other telecommunications companies, spokesman Tilman Lueder said Wednesday.
Third parties can't be brought in unless formal proceedings are started, he said.
"The opening of proceedings does not necessarily mean that it is state aid," he said. "It is simply to have more clarity, more opinion on the matter."
He said the 20-member Commission would be asked to vote on the case in February. Such requests are almost always approved.
Under EU rules, government help is allowed as long as the funds have the same terms as those offered by the private sector.
Lueder said the probe could take up to 18 months.
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