Is the EU's biggest member subject to EU law?

A fascinating question is posed in this post's title. Read this report from Reuters linked here. Consider these quotes:

The European Commission announced late on Friday that Competition Commissioner Neelie Kroes had written to Guttenberg voicing doubts about Germany's offer to provide 4.5 billion euros in financial aid for Opel as part of the deal with Magna.

In the letter, Kroes said there were "significant indications" that Germany had made the aid for Opel contingent on Magna being chosen as the winning bidder -- a stance that would run counter to EU competition rules.

Speaking to reporters in Berlin on Saturday morning, Guttenberg said the deal was "on track" and voiced confidence that Germany could resolve the questions raised by Kroes.

Asked whether her concerns could doom the sale to Magna, he replied: "No, I don't believe that."-----------

It linked its offer of 4.5 billion euros in aid for Opel to a Magna takeover, with Chancellor Angela Merkel promising back in August to intervene personally, if necessary, to ensure Magna won the bid battle. How can Mr Guttenberg make such a statement, given all the media reports as the GM/Opel matter developed to the exact effect that Magna had to be the winner? How can the supposedly fearless Neelie Kroes, the EU Competition Commissioner, only refer to "significant indications"? I guess we can at least be grateful that the former EU Commissioner in that post was dispatched by the EU to prop up Gordon Brown to ensure the Lisbon Treaty went through, in light of this development and the startling implications that it appears some avoidance of the law is already being contemplated, should not now the Queen demand the return from Rome of the dishonestly ratified document to be put to the people in the promised referendum concurrently with an immediate General Election?