EU launches legal action against E.ON, GDF over market-sharing

Jul 30, 2007, 10:11 GMT

Brussels - European Union regulators on Monday launched legal action against Germany's energy giant E.ON and French energy company Gaz de France (GDF) over restrictive business practices.

The European Commission, which is EU's top antitrust watchdog, said that it had opened infringement procedures against the two companies as they were suspected of agreements not to sell gas in each others' home market.

Under EU rules, businesses and private customers should be able to choose their power and gas suppliers freely since July 2007.

At least in theory, industrial consumers have been able to choose freely their supplier since July 2004.

However, the commission has criticised national governments for failing to implement the EU rules on the liberalisation of the European gas markets.

The launch of infringement procedures does not imply that the commission has conclusive evidence of an infringement.

However, the EU executive said that it would 'conduct an in-depth investigation of the case as a matter of priority.'

The commission is currently fighting to combat national energy cartels and halt creeping energy protectionism across the EU.