BRUSSELS - The European Commission announced in a Monday press release that it has decided to open formal anti-trust proceedings against the German energy company E.ON and the French gas company Gaz de France for a suspected breach of the EC Treaty's rules on restrictive business practices (Article 81).

The case arises out of the inspection carried out in 2006 on E.ON and Gaz de France premises in Germany and France. The Commission proceedings focus on a possible agreement or concerted practice between E.ON and Gaz de France to keep out of each other's home market, even after the liberalization of the European gas markets.

The Commission decided to initiate proceedings against E.ON and Gaz de France originates from information obtained during the inspection carried out in 2006.

The possible infringement, which will be further investigated, takes the form of a suspected agreement and/or concerted practice between E.ON and Gaz de France whereby they agreed not to sell gas in each other's home market.

This agreement and/or concerted practice may concern in particular supplies of natural gas transported over the MEGAL pipeline, which is jointly owned by E.ON and Gaz de France and transports gas across Southern Germany between the German-Czech and German-Austrian borders on the one side and the French-German border on the other side.

These suspected practices, constituting possible infringements of Article 81 of the EC Treaty, are engaged in by E.ON AG, its subsidiaries and companies under their control, including E.ON Ruhrgas AG, E.ON Gastransport AG & Co. KG and MEGAL Mittel-Europäische Gasleitungsgesellschaft mbH & Co. KG, as well as by Gaz de France SA, its subsidiaries and companies under their control, including Gaz de France Réseau Transport (GRTgaz) and MEGAL Mittel-Europäische Gasleitungsgesellschaft mbH & Co. KG.

It is important to note that the initiation of proceedings does not imply that the Commission has conclusive proof of an infringement. It only signifies that the Commission will conduct an in-depth investigation of the case as a matter of priority.

The company's rights of defense will be fully respected.

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