Press Release: Mergers: infringement proceedings against Spain for not lifting unlawful conditions imposed on E.ON’s bid for Endesa

The European Commission has formally requested Spain to comply with the Commission's decisions requiring Spain to withdraw certain conditions concerning E.ON’s bid for Endesa imposed by the Spanish Energy Regulator (CNE) in July 2006 and other conditions imposed by a Ministerial decision of 3 November 2006. The conditions in question were declared illegal under Article 21 of the EU Merger Regulation by Commission decisions adopted on 26 September 2006 and 20 December 2006 respectively (see IP/06/1265 and IP/06/1853). These decisions have immediate binding effect. The formal request takes the form of a "reasoned opinion", the second stage of infringement proceedings under Article 226 of the EC Treaty. If there is no satisfactory reply within seven working days the Commission may decide to refer Spain to the European Court of Justice for breach of the Commission's two Article 21 decisions.