[3] Therefore, the ordinary rule of statutory interpretation, granting precedence to the subsequent law (lex posterior derogat legi anteriori/priori), would apply in case of conflict.

[4] In the meantime, Costa had challenged the second electricity bill he had received from ENEL before another Justice of Peace of Milan, Vittorio Emanuele Fabbri.

In fact, by creating a Community of unlimited duration, having its own institutions, its own personality and its own capacity in law, apart from having international standing and more particularly, real powers resulting from a limitation of competence or a transfer of powers from the States to the Community, the member-States, albeit within limited spheres, have restricted their sovereign rights and created a body of law applicable both to their nationals and to themselves.

The ECJ interpreted the right of establishment rather narrowly, thus suggesting that the nationalisation law was consistent with it as long as it did not entail discrimination on the basis of nationality.

The ECJ instead left to the referring court to establish whether the nationalisation law was consistent with the provision of the EEC Treaty on commercial monopolies.