On Wednesday, the European Commission requested Sweden to decrease its financial support of major city newspapers and to limit operating costs in order to bring its government assistance to the press in accordance with EU requirements, the Guardian reported on Wednesday.

The Commission, which acts as the governing board for the 27-nation European Union to ensure fair competition and trade, said it was not questioning the media pluralism sought by the Swedish administration, according to The Swedish Wire's commentary.

"The commission recognises the importance of media pluralism for the cultural, democratic and public debate in member states and the importance of newspapers in this context," EU Competition Commissioner Neelie Kroes said.

"However, the Commission considers that some amendments to the aid scheme are necessary in order to avoid disproportionate distortions of competition and trade," the Commission said in a statement.

The request is a result of an investigation started in November 2008 after objections were made about the assistance offered to the press by the Swedish government. The Commission declared the assistance constituted state aid.

"Running a newspaper is also a commercial activity and the Commission has a duty to prevent undue distortions of competition and trade resulting from public subsidies," Kroes said in the statement.

"The current economic climate has serious negative implications for the written press, especially for newspapers that do not receive aid," Kroes added.

The findings suggest a progressive reduction on limits of aid offered to the major newspapers and an ultimate limit on operating costs.

Sweden now has a three-month bracket to respond to the Commission's findings and proposals. Short of an agreement the Commission may begin a formal state aid investigation.