Germany's upper house of parliament on Friday approved a controversial law imposing tolls on the country's famous Autobahns (motorways), in the face of objections from neighbouring countries who say it discriminates against foreign drivers.

Austria immediately announced it would file a legal challenge with the European Court of Justice.

The law is the result of a compromise struck with the European Commission last month, after it threatened to take Germany to court if the toll project was not made fairer to foreigners.

It includes lower costs for the short-term passes most likely to be used by visitors, with prices for a 10-day pass now starting at 2.50 euros (R35.50) for the most environmentally friendly cars.