According to a report in the business weekly Capital, the European Union Commission's legal service has decided that a controversial German law restricting shareholder voting rights to block takeovers at Volkswagen conforms with EU legislation and can remain intact. Germany's so-called 'Volkswagen Law', enacted especially for the company, has limited any investor from holding more than 20% of VW's voting rights. This has prevented the company from being a takeover target in the past. The rule gives an effective right of veto over any takeover bid to the Lower Saxony state government.