A PYMNTS Company

Spain: Illegal dismissals pose threat to restructuring at CNMC

By  |  January 17, 2017

Representatives of Spain’s main political parties have put forward their plan for a new framework for the country’s market and competition regulation agency. The plan, however, may be delayed by a recent ruling by the European Court of Justice in favor of Mr. Bernardo Lorenzo, former council member at the now extinct National Markets Commission (CNC), and of Mr. Xabier Omaetxea, of the former Telecommunications commission.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The EC has found that the former government officials were illegally terminated in 2013, when their respective agencies were dissolved to form the single-agency regulator CNMC. The European Union forces its members to ensure a great degree of autonomy to their competition and market regulators, heavily protecting the terms and positions of regulators. Both Mr. Lorenzo and Mr. Ormaextea are considered by the EC to have been terminated early, in violation of European Community norms.

    The ball now falls to Spain’s High Court, which will decide whether the two councillors should be re-instated to positions within the existing organisation, whether their termination is nullified, and whether they should be compensated for the political decisions that led to their firing. The court’s decision will inevitably affect the negotiations now under way by the country’s political forces as they fine-tune an eventual replacement for the CNMC.

    Full Content: Voz Populi

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.