The Commission, which monitors to ensure that governments do not unfairly help companies for competitive advantage, said in a statement the German scheme was a "proportionate" response and in line with EU state aid rules.
The scheme entitles companies from all sectors to compensation for damages incurred during lockdowns imposed in Germany to contain the coronavirus pandemic in March-April and November-December last year.
The aid comprises grants covering up to 100% of the damage suffered during the lockdowns, or 75% of a company's turnover in November and December 2019.
The European Union's antitrust chief, Margrethe Vestager, said the measures would complement German state aid schemes, already approved by the EU, offering support of up to 4 million euros per company.
(Reporting by Kate Abnett; Editing by Alexandra Hudson)
