EU probes Gaz de France market activity

BRUSSELS, June 12 (UPI) -- The French natural gas company Gaz de France is the subject of a European Commission inquiry into an alleged conspiracy with German utility E.ON.

Gaz de France said the European Commission issued a "statement of objections" regarding French and German domestic gas markets, the BBC said Thursday.

GDF is the subject of a current investigation over its suspected exploitation of its market position by curtailing gas imports, though the company told the commission it would hand over "all the information it requires."

Officials with the state-run GDF said the European Union expressed its "suspicions of collusion" with the German firm by blocking competitors from entering their regional natural gas market, particularly deliveries through the GDF-E.ON-owned MEGAL pipeline.

The EU said it was concerned the protectionist move ran counter to efforts to liberalize the gas and electric markets in Europe.