National Commission for Markets and Competition: warnnings of the European institutions on the regulator independence

Abstract

The foundation of the CNMC by Spanish Act 3/2013 was preceded by a warning from the European institutions about the possible opening to Spain of proceedings for infringement of European law. European Commission argued unlawfulness of the new governmental powers that should be attributed to this regulator and challenged the breach of the pre-existing regulators independence caused by their early removal. This paper analyzes arguments which justified economic regulators merger on a single CNMC whose independence is mandatory by European law. In particular, it explores the impact on the status of independence of the national regulators laid down by the European law and, especially, by the European ruling which has recently confirmed that early removal ex lege of the fixed term of regulators by foundation of a new regulator implies a breach of their independence and infringes European law.