BRUSSELS—The European Union took legal action against Britain on Oct. 1 over its plans to pass legislation that would breach parts of the legally binding divorce agreement the two sides reached late last year.
The EU move underscored the worsening relations with Britain, which was a member of the bloc until Jan. 31. Both sides are trying to forge a rudimentary free trade agreement before the end of the year, but the fight over the controversial UK Internal Market bill has soured relations this month.
