French authorities have stated that meat processing company Spanghero may have knowingly sold horsemeat labelled as beef.
Its licence is being suspended while investigations continue, French Agriculture minister Stephane Le Foll has said, according to BBC.
Spanghero has denied the allegations, saying it had only ever dealt in meat it believed to be beef.
According to Benoit Hamon, France's Economic and Consumer Affairs Minister, the fraudulent sales may have been going on for several months, and reached across 13 countries and 28 companies.
The widening scandal over mislabelled horsemeat has affected at least 12 European countries.