The European Commission has informed the Spanish Government of its preliminary conclusion that Spain has violated Article 21 of the EU Merger Regulation. This is because certain conditions imposed on Enel and Acciona in their proposed acquisition of control over Endesa may be incompatible with EC law. Due to the Community element of the deal, on 5 July 2007, the European Commission approved without conditions the acquisition of joint control of Endesa by Enel and Acciona. However, a number of conditions were imposed by the Spanish National Energy Commission (CNE) before the European Commission’s decision on the merger, without prior communication to, or approval by, the Commission. The European Commission has now reached the preliminary conclusion that certain conditions imposed by the CNE violate EC Treaty rules on free movement of capital, freedom of establishment and free movement of goods. In its preliminary view, the conditions imposed by CNE interfered with the European Commission’s exclusive competence to decide on mergers having a Community dimension.