The legal action is a stark warning to the UK, whose own deadline for full implementation is January 31, a deadline that the Government has already moved three times.
Austria has been hauled over the coals for limiting producer obligation to the recycling of same-brand cars registered in Austria.
The EC said this was not a correct execution of the ELV directive, which states that consumers must be able to hand in their old car for dismantling free of charge.
Meanwhile Germany was in trouble for narrowing the scope of the directive's substance ban and making exemptions from the free take-back obligation.
Environment Commissioner Stavros Dimas said: "By failing to comply fully with these laws, Austria and Germany are not delivering the level of protection against pollution and other environmental hazards that they have signed up to at European level."