Business Brief

Spain face legal threat

The European Commission yesterday (18 October) threatened Spain with legal action over its failure to lift restrictions on German energy giant E.ON’s bid for Spanish utility Endesa. Spanish regulator CNE had imposed weighty conditions on the merger involving the sale of Endesa’s major assets in Spain. The Spanish government, which failed to heed an earlier Commission warning at the end of September, now has five working days to conform to the Commission’s wishes.

Italian merger breach

The Commission yesterday ruled that Italy had violated article 21 of the EU merger regulation by blocking a bid by Spanish motorway operator Albertis for Italian group Autostrade. The ruling was issued despite a statement by Italian Prime Minister Romano Prodi on Monday (16 October) giving the deal the green light. Competition Commissioner Neelie Kroes remains concerned about strict new rules on Italian toll-roads, which could scupper the deal. Italy must respond within ten working days.

Postal services plan

Internal Market Commissioner Charlie McCreevy yesterday announced proposals for opening up the postal services market by 2009, introducing competition on the delivery of letters weighing less than 50 grams, the last preserve of national monopolies. The proposal is likely to meet strong opposition from countries such as France and Italy which are protective of their national champions. "The smart operator, the smart country, sees it as an opportunity," said McCreevy.

BA spending spree

British Airways announced on Tuesday (17 October) that it will be spending about $10 billion (€8bn) over the coming decade on new planes, providing Airbus with a strong incentive to move forward with production of its A350 model. Boeing will be vying for orders with rival models the 777 and 787. The board of EADS, the parent company of Airbus, is currently deciding on future strategy following major production delays on the A380 model.

Vista to be launched

Microsoft said on Friday (13 October) that it had complied with the Commission’s demands for changes to its flagship product Vista, which will now be launched in EU markets next month. The Commission had expressed anti-trust concerns over access for security products produced by rivals. "We are guardedly optimistic," Chris Paden, communications director of software company Symantec, told European Voice. "So far, they have not provided us a timetable or any further information."

MEPs will next week attempt to get the European Commission to tackle dubious practices employed by western companies operating in corrupt countries by strengthening EU legislation on corporate transparency.

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