EC raids energy firms in six countries
ISN SECURITY WATCH (Thursday, 18 May 2006: 13.26 CET) – The European Commission has raided some 20 of the biggest European energy firms in six member states, for suspected abuse of their market position, news agencies reported.
Germany's RWE, France's Gaz de France, Austria's OMV, and Belgium's Fluxys have all confirmed to reporters that investigators had raided their offices. Reports said other firms in Italy and Belgium were also targeted.
Six years ago, the EU began liberalizing its energy market and the latest raids are an attempt to crack down on monopoly practices.
Many countries are still dominated by former monopolies that keep prices artificially high and make competition in the sector difficult.
EC spokesman Jonathan Todd told a press conference on Wednesday that the inquiry had been launched to find out whether the companies were guilty of "restrictive business practices and/or abuse of a dominant market position".
“The Commission was particularly worried about the way firms granted, or restricted, access to pipelines,” Todd was quoted as saying.
In a preliminary report, the EC said regulators had uncovered several competition violations, including tightly controlled infrastructure for the transport of natural gas.
Under EU rules, the commission could fine companies it finds guilty of abusing their market power up to 10 per cent of their total annual turnover, reports said.
Germany's RWE, France's Gaz de France, Austria's OMV, and Belgium's Fluxys have all confirmed to reporters that investigators had raided their offices. Reports said other firms in Italy and Belgium were also targeted.
Six years ago, the EU began liberalizing its energy market and the latest raids are an attempt to crack down on monopoly practices.
Many countries are still dominated by former monopolies that keep prices artificially high and make competition in the sector difficult.
EC spokesman Jonathan Todd told a press conference on Wednesday that the inquiry had been launched to find out whether the companies were guilty of "restrictive business practices and/or abuse of a dominant market position".
“The Commission was particularly worried about the way firms granted, or restricted, access to pipelines,” Todd was quoted as saying.
In a preliminary report, the EC said regulators had uncovered several competition violations, including tightly controlled infrastructure for the transport of natural gas.
Under EU rules, the commission could fine companies it finds guilty of abusing their market power up to 10 per cent of their total annual turnover, reports said.
posted by Marko at 5/18/2006 07:38:00 AM
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