The European Commission said Autostrada Wielkopolska S.A.(AWSA) the operator of the Polish A2 motorway, which runs from Warsaw to the German border, was overcompensated for a change in Polish law on toll motorways.
Brussels has demanded AWSA must repay £194 million (€210 million) to the state.
The Commission argued the over compensation was a breach of EU state aid rules and AWSA must repay the money to the Polish government.
The compensation paid covered the period from September 2005 to June 2011.
It comes after a change in Polish law, introduced in 2005, to exempt heavy good vehicles that had paid a vignette fee from paying motorway tolls.
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At the same time, Polish authorities compensated motorway operators for their loss in revenue.
However, according to Poland in the case of AWSA, an outdated study on traffic and revenues was used rather than an up-to-date study from 2004.
The European Commission said: “The compensation actually paid to AWSA went beyond the direct effects of the legislative change and improved its expected financial situation.”
The 1999 study they used had a higher level of traffic and revenue.
The Commission’s investigation confirmed AWSA was entitle to receive compensation under its concession agreement with Poland
EU state aid rules require that incompatible state aid is recovered in order to ensure there is no competition created by the aid.
It comes as EU-Poland relations have come under strain.
While touring Central and Eastern Europe, President of France Emmanuel Macron did not go to Poland, sparking speculation that it was becoming “internationally isolated”.
Polish Foreign Minister Witold Waszczykowski, said: “Poland is not being isolated.
“We are hosting an important meeting today so President Macron is not following carefully the news, doesn’t know what is happening in this part of Europe. But this happens sometimes.”