The Times of India reported Thursday the decision is seen as a significant widening of Britain's heated debate over the eastern jobs flight.
Britain's largest manufacturing union, the 730,000-member Amicus, told the Times Thursday the EU investigation would be a huge pressure point on the British government to consider -- and possibly stop -- the long-term effects of off-shoring to India and other lower-cost locales.
Britain's trade and industry secretary Patricia Hewitt announced last week an independent study into the impact of off-shoring to debunk the "myth" that jobs are being lost overseas.
But Brian Harris of Amicus told the Times the European investigation would reveal a different picture.
"How can the loss of 1,000 UK jobs be good for the British economy?" he asked.