Judgment of the Court (Fourth Chamber) of 2 September 2021 — European Commission v Federal Republic of Germany

(Case C-718/18) (1)

(Failure of a Member State to fulfil obligations - Internal markets for electricity and natural gas - Directive 2009/72/EC - Article 2(21) - Article 19(3), (5) and (8) - Article 37(1)(a) and (6)(a) and (b) - Directive 2009/73/EC - Article 2(20) - Article 19(3), (5) and (8) - Article 41(1)(a) and (6)(a) and (b) - Concept of a ‘vertically integrated undertaking’ - Effective unbundling of networks from the activities of production and supply of electricity and natural gas - Independent transmission operator - Independence of the staff and the management of the transmission system operator - Transitional periods - Shares held in the capital of the vertically integrated undertaking - National regulatory authorities - Independence - Exclusive powers - Article 45 TFEU - Freedom of movement for workers - Charter of Fundamental Rights of the European Union - Article 15 - Right to engage in work and to pursue an occupation - Article 17 - Right to property - Article 52(1) - Restrictions - Principle of democracy)

(2021/C 431/18)

Language of the case: German

Parties

Applicant: European Commission (represented by: M. Noll-Ehlers and O. Beynet, acting as Agents)

Defendant: Federal Republic of Germany (represented: initially by J. Möller and T. Henze, acting as Agents, and subsequently by J. Möller and S. Eisenberg, acting as Agents)

Intervener in support of the defendant: Kingdom of Sweden (represented: initially by C. Meyer-Seitz, A. Falk, H. Shev, J. Lundberg and H. Eklinder, acting as Agents, and subsequently by C. Meyer-Seitz, H. Shev and H. Eklinder, acting as Agents)

Operative part of the judgment

The Court:

Declares that, by failing to transpose correctly:

—

Article 2(21) of Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC, and Article 2(20) of Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC,

—	Article 19(3) and (8) of Directives 2009/72 and 2009/73,

—	Article 19(5) of Directives 2009/72 and 2009/73,

—	Article 37(1)(a) and (6)(a) and (b) of Directive 2009/72 and Article 41(1)(a) and (6)(a) and (b) of Directive 2009/73,

the Federal Republic of Germany has failed to fulfil its obligations under those directives;

2.	Orders the Federal Republic of Germany to pay the costs;

3.	Orders the Kingdom of Sweden to bear its own costs.

(1) OJ C 54, 11.2.2019.