Selin Atay - DG-Brussel launched legal action against the UK on the grounds that the House of Commons approved the domestic market bill. European Union officials said the bill, which will also be debated in the House of Lords, unilaterally broke international law and the Brexit Withdrawal Agreement.

Announcing the EU decision, European Commission Chief Ursula von der Leyen recalled once again that they had demanded that the provisions they considered problematic be removed from the UK by the end of September.

Commission chief Ursula von der Leyen said in a statemen that "The deadline lapsed yesterday. The problematic provisions have not been removed”. The Commission has "decided to send a letter of formal notice to the UK government - this is the first step in an infringement procedure," Ursula von der Leyen added.

Commission President Ursula von der Leyen stressed that the UK had not met these demands and said "it is contrary to Irish and Northern Ireland protocol for the bill to be adopted in this form."

The British government, which has one month to reply to the Commission's letter, reiterated in a statement on Thursday that its bill is designed to "create a legal safety net to protect the integrity of the UK's internal market."

The European Union may refer the case to the European Court of Justice, the Union's highest judicial body. In that case, Britain must abide by the decisions of the European Court of Justice during the transition period, even if it leaves the European Union.

The British pound fell about 0.6 percent against the euro and dollar after European Commission chef’s announcement about the UK.

Britain left the EU almost 3.5 years after the Brexit referendum, which culminated in the decision to leave the EU in 2016. The 11-month transition period, which will last from January 31 until the end of the year, has begun. There has been no agreement on how to build a relationship between the UK and the EU after the transition period. If no agreement is reached during the transition period, which ends on December 31, the UK will leave the EU without a deal, and trade between the two sides will be conducted under World Trade Organization rules.

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