Judgment of the Court (Third Chamber) of 6 March 2008 –

Commission v Spain

(Case C‑196/07)

(Failure of a Member State to fulfil obligations – Competition policy – Concentrations – Failure to comply with obligations imposed by the Commission – E.ON/Endesa

1.                     Actions for failure to fulfil obligations – Examination of merits by the Court – Situation to be taken into consideration – Situation on expiry of the period laid down in the reasoned opinion (Art. 226 EC) (see paras 25-26)

2.                     Actions for failure to fulfil obligations – Subject-matter of the dispute – Determined by the reasoned opinion – Time-limit communicated to the Member State – Default subsequently remedied – Interest in continuing the proceedings – Possible liability of the Member State (Art. 226 EC) (see paras 27-28)

3.                     Actions for failure to fulfil obligations – Failure to comply with a Commission decision relating to a concentration – Defences – Absolute impossibility of implementation – Criteria for assessment – Difficulties in implementing – Obligation on the Commission and the Member State to cooperate in seeking a solution consistent with the Treaty (Arts 10 EC and 226 EC) (see para. 30)

4.                     Actions for failure to fulfil obligations – Failure to comply with a Commission decision relating to a concentration – Defences – Legality of the decision called in question – Inadmissibility – Limits – Non-existent measure (Arts 226 EC, 227 EC, 230 EC and 232 EC) (see paras 34-38)

Re:

Failure of a Member State to fulfil obligations – Failure to comply with Article 2 of Commission Decision of 26 September 2006 (Case No COMP/M.4197 – E.ON/Endesa – C(2006) 4279 final) and Article 2 of Commission Decision of 20 December 2006 (Case No COMP/M.4197 – E.ON/Endesa – C(2006) 7039 final).

Operative part

The Court:

1)         declares that by not withdrawing:

–        the conditions 1 to 6, 8 and 17 imposed by the decision of the National Energy Committee which were declared incompatible with Community law by Article 1 of the Commission Decision of 26 September 2006 (Case No COMP/M.4197 – E.ON/Endesa – C(2006) 4279 final), and

–        conditions 1, 10, 11 and 15, as amended, imposed by decision of the Ministry of Industry, Tourism and Trade which were declared incompatible with Community law by Article 1 of the Commission Decision of 20 December 2006 (Case No COMP/M.4197 – E.ON/Endesa – C(2006) 7039 final),

the Kingdom of Spain has failed to fulfil its obligations under Article 2 of each of those decisions;

2)         Orders the Kingdom of Spain to pay the costs.