/world business
BRUSSELS, Belgium (AP) -- European Union regulators stepped up their threat of antitrust action against Germany's E.On. AG and France's Gaz de France on Thursday over allegations the two colluded to avoid selling natural gas in each other's home markets.
Gaz de France bosses have some questions to answer over concerns raised by the European Commission.
The European Commission sent the two companies an official complaint and asked them to explain their positions in answer to allegations the two shared out markets between them for gas piped from Russia on the MEGAL pipeline they jointly own. EU officials say this could have kept prices artificially high.
If EU regulators conclude that the companies did break antitrust rules by making an illegal market-sharing agreement, they could face fines of up to 10 percent of annual global turnover for each year of the offense.
An investigation into the two companies' alleged deal was launched last July.
The MEGAL pipeline is the major source of Russian gas for German consumers and the only route for gas piped to France. It crosses southern Germany, bringing gas from the border with the Czech Republic and Austria across to France.
Forty percent of Europe's gas comes from Russia, a reliance that is increasing as gas gains popularity because it releases fewer greenhouse gas emissions than oil and coal.
EU antitrust officials have focused on Europe's energy sector in recent years, claiming that prices are too high and large companies have too much control over energy transport and supply.
Gaz de France also faces another EU probe, launched last month, into whether the company deliberately restricted gas imports into France, a move that would allow it to control prices and limit competition.
Copyright 2008 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
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