A European court ruled Thursday that a Spanish law requiring regulatory approval for the purchase of shares in energy companies goes against European Union law.
"The system of prior notification which has been established undermines the free movement of capital and the freedom of establishment and is not justified by the objective of security of energy supply," the European Court of Justice said in a statement.
Two years ago Spain put in place a requirement mandating any purchase of shares in energy companies to be subject to prior approval by the country's energy regulator. Such authorization was required for Germany's E.ON AG (EOA.XE), Italy's Enel SpA (EN) and Spanish engineering group Acciona SA (ANA.MC) offers to buy utility Endesa SA (ELE.MC).