Spain warned over Endesa merger blockade[fr][de] 

In a preliminary ruling issued on 25 August, the Commission said that the conditions imposed by the Spanish regulator CNE on E.ON violate EU merger rules.

On 27 July, CNE had ordered that the German energy giant sells around 30% of Endesa's production capacity if it is to approve its €27 billion bid for the Spanish utility in an attempt to discourage the merger. The move was widely perceived as a protectionist attempt by Spain who favoured a deal between Endesa and Gas Natural instead to create a national energy champion.

But the Commission said that CNE's conditions "violate the EC Treaty's rules […] since they are not justified on public security grounds and that in any event they are neither necessary nor proportionate for the protection of public security". 

Moreover, the Commission said that Spain had no competence on the matter as the proposed merger has a strong cross-border implication. "The Commission has exclusive competence to assess the competitive impact of concentrations with a Community dimension," it said. "Member states cannot apply their national competition law to such operations".

The Spanish government has until 4 September to respond but has already said that it would maintain its position.