Competition and Regulation in Network Industries, Volume 9 (2008), No. 1 3 THE THIRD LEGISLATIVE PACKAGE AND OWNERSHIP UNBUNDLING IN THE LIGHT OF THE EUROPEAN FUNDAMENTAL RIGHTS DISCOURSE Sabrina Praduroux and Kim T alus* Abstract Te old vertical structures of EC energy markets are slowly fading away. Te latest attempt to move away from this model is the Commission proposal on ownership unbundling. Te proposal introduces two alternative regimes. States may choose between full ownership unbundling and a mere control unbundling. Some States and their powerful energy companies have voiced concerns over the compatibility of ownership unbundling with fundamental rights and general principles of Com- munity law. Tis article discusses the Commission proposal in detail. It also examines the alleged confict between full ownership unbundling and the fundamental rights and general principles of EC law. Keywords: EC energy law; ownership unbundling; third energy package; right to property; fundamental rights 1. INTRODUCTION Every company active in the production of goods, be it vehicles, mobile phones, gas or electricity, needs a distribution channel taking its products into the market and to the customers. Some companies use external distributors to do this, while some choose to * Sabrina Praduroux and Kim Talus are doctoral researchers in EC law at the Institute for Interna- tional Economic Law (University of Helsinki). Tey are both members of Center of Excellence Foundations of European Law and Policy. E-mails: sabrina.praduroux@helsinki.f and kim.talus@ helsinki.f. Te authors would like to thank Henrik Bjoerneby for his valuable comments and insights.