The Justice Tribunal in Luxembourg ruled today that Spain broke EU regulations by refusing to withdraw the conditions it imposed on E.ON's attempt to acquire the Spanish utility firm Endesa.

It is the first ruling by the court on the dispute between Spain and Brussels caused by the obstacles erected by the Spanish government to block the German utility giant's frustrated €42 billion euro takeover bid and endorses an earlier ruling by the European Commission.

The conditions imposed by the Spanish government were that:
1. The Endesa brand should be retained for at least five years
2. Shares in the company should not be sold outside Spain over the same period
3. Only Spanish coal should be used in Endesa facilities
4. Strategic decisions that might affect the security of national power supply should not be taken