Dutch contestant Joost Klein was dropped from Saturday's Eurovision final just hours before the event following an incident unlinked to the controversy over Israel's participation amid the Gaza war.
"Swedish police have investigated a complaint made by a female member of the production crew after an incident following his performance in Thursday night's Semi Final," the European Broadcasting Union said in a statement.
"While the legal process takes its course, it would not be appropriate for him to continue in the Contest."
Swedish police told AFP they had questioned a man for alleged "intimidation".
"The offence was committed in the Malmo arena on Thursday evening," police spokesman Pelle Vamstad told AFP.
Dutch pubic broadcaster Avrotros told AFP in an email that it found the move "disproportionate", adding that it it was "shocked by the decision".
At the press conference after the second semi-final, Klein repeatedly covered his face with a Dutch flag, seemingly signifying he didn't agree with being placed next to the Israeli contestant Eden Golan.