History
Construction started in 1975 when Ruhrgas and Gaz de France formed a partnership (Mittel-Europäische-Gasleitungsgesellschaft) for transportation of Russian natural gas to France and southern Germany. The pipeline was commissioned in 1980. The pipeline cost €634 million.
In July 2009, the European Commission fined GDF Suez and E.ON €553 million each due to collusion on the MEGAL pipeline. Commission officials claimed there was a deal between the two groups’ predecessor companies – Gaz de France and Ruhrgas – not to sell gas sent via MEGAL into each other's home markets dating from the mid-1970s. The Commission alleged that the companies maintained these arrangements after European gas markets were liberalised despite knowing that the 1975 deal violated competition rules. They are the second largest fines imposed by the European Commission and the first on the energy sector. The decision is contested by both companies, who argue that the business rules in 1975 differed from those of today. In 1975, Ruhrgas and Gaz de France concluded arrangements according to which they agreed not to sell gas in each other's home market. The deal was abandoned in 2005.
Read more about this topic: MEGAL Pipeline
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