A Greek law that forces investors to seek the approval of government before acquiring voting rights in certain companies is contrary to freedoms granted in European Union treaties, the EU's highest court ruled Thursday.

The ruling means the Court of Justice of the European Union has sided with the European Commission, which charged that Greece 's scheme also restricts the free movement of capital and the participation of shareholders in corporate decisions.

The law impacts those who wish to purchase 20% or more of the share capital of limited public companies that operate national infrastructure networks.

Greece argued that the legislation does not affect privatized companies, and ensures basic public services and operation networks, including energy and water supply.

However, the court concluded Thursday that the law gives the Greek government discretion that is "too extensive and not easily amendable to judicial review." It said the law is not justified.

The Commission can file cases against EU member states when it determines that laws are not fulfilled. If the court agrees with the Commission, as it did Thursday, the member state must comply with the judgment "without delay."

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