The European Commission has sent a letter of formal notice to Spain concerning the conditions imposed by the Spanish Energy Regulator (CNE) on the acquisition of Endesa by Enel and Acciona. On 5 December 2007, the Commission declared the conditions imposed by CNE to be contrary to the EC Treaty rules on the freedom of establishment, free movement of capital and free movement of goods. The Commission required Spain to withdraw the conditions by 10 January 2008 but Spain did not comply with this mandate. The letter of formal notice is the first step in infringement proceedings under Article 226 of the EC Treaty. If there is no satisfactory reply within 15 working days, the Commission may issue a formal request to Spain to comply with its decision. The Commission may then bring the case before the European Courts.