In February 2006, the German energy company E.ON launched a bid to acquire the Spanish energy company Endesa. E.ON’s offer was competing with a previous bid made by the Spanish energy company Gas Natural. A few days later the Spanish Government adopted a Royal Decree-Law empowering the Spanish electricity and gas regulator to review the E.ON bid. This Decree-Law includes provisions that require prior approval for the acquisition of a stake of more than ten per cent (or any other stake that entails significant influence) in a company engaging in regulated activities, such as oil and gas. On 3 May 2006, the Commission opened infringement proceedings against Spain considering that the Decree-Law unduly restricts the free movement of capital and right of establishment. The Commission was not satisfied with Spain’s arguments in defence and has now referred Spain to the European Court of Justice.