(BRUSSELS) - The European Commission on Thursday opened an infringement procedure against Spain after Madrid failed to lift disputed conditions on a takeover bid for Spanish power company Endesa.

"They have left us with no choice but to issue an infringement procedure," said Commission spokesman Jonathan Todd.

"The commission will not stand idly by while community law is flouted by member states," he added.

The European Union's top competition watchdog had told Spain to lift the conditions on Italian energy group Enel and Spanish construction group Acciona's joint bid for Endesa.

After long-blocking a bid by German company EON for Endesa, the Spanish government gave the green light last July to the combined bid to acquire Endesa but attached a string of conditions.

The Commission has said the illegal conditions included an obligation for Enel and Acciona to maintain Endesa as an independent company and to retain its decision-making centre in Spain.

The European Commission has sent a formal request to Spain to explain why it has not withdrawn the takeover conditions.

Spain has 15 working days to reply or it will face a formal request for compliance, the penultimate step before heading to the courts.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.