The French government says the trading license of a French company will be suspended on suspicion it had knowingly been selling horse meat as beef.
The company, Spanghero, has denied the accusations, saying it handled only meat it believed was beef.
Spanghero was buying meat from Romania and then selling it to another French company, which made frozen meals.
French Consumer Affairs Minister Benoit Hamon said on February 14 that it appeared the meat left Romania clearly labeled as horse meat.
The scandal of the horse meat sold as more expensive beef has affected about a dozen EU countries.
Also on February 14, three people were reported arrested in Britain on suspicion of involvement in the scandal.
According to U.K. authorities, some British horse meat sold in Europe may have contained traces of a drug used to treat sick horses.
Based on reporting by Reuters and AP