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EU court: Germany has complied with 'Volkswagen law' ruling

LUXEMBOURG (Reuters) - Germany has complied with a 2007 court ruling ordering it to water down a 1960 law giving the state of Lower Saxony veto rights over carmaker Volkswagen , Europe's top court said on Tuesday.

"Germany complied in full with the initial judgment of the court delivered in 2007," the Luxembourg-based EU Court of Justice (ECJ) said in its ruling.

Judges rejected arguments from the European Commission, which took Germany to court in 2005 over its so-called VW Law, saying this breached EU laws on the free movement of capital. The ruling means Germany avoids fines worth tens of millions of euros.

(Reporting by Michele Sinner, writing by Foo Yun Chee)