An EU deadline for the government to remove sections of the Internal Market Bill expired on Wednesday.
The "letter of formal notice" could eventually lead to a court case against the UK at the European Court of Justice, the EU's top court.
But the EU has not walked away from talks over a post-Brexit trade deal.
European Commission President Ursula von der Leyen said the UK would have until the end of November to respond to the EU's concerns over the draft legislation.
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Source: BBC
