EU antitrust regulators faced a legal blow as an adviser to Europe’s highest court questioned the decision to block Illumina Inc’s $7.1 billion bid for Grail Inc., indicating an overstepping of powers.
This critique, if upheld, could influence the EU’s stance on future merger deals, including Qualcomm Inc’s involvement.
In a controversial move, the European Commission invoked Article 22 in 2021 to scrutinize the Illumina-Grail deal despite falling below the EU merger revenue threshold, based on requests from various EU nations.
Despite Illumina’s completion of the deal before regulatory approval, the Commission blocked it and demanded its reversal, resulting in legal battles.
CJEU Advocate General Nicholas Emiliou criticized the General Court’s judgment for misinterpreting Article 22, asserting that member states can’t prompt the Commission to assess a concentration without a Community dimension.
Emiliou cautioned against granting the Commission vast powers that could allow global scrutiny of nearly any concentration, irrespective of turnover or EU presence, due to the lack of efficiency, predictability, and legal certainty in proposed procedures.
Illumina applauded the recommendation, highlighting the Commission’s alleged overreach in asserting jurisdiction over the merger.
Following a prolonged battle with U.S. and European antitrust regulators, Illumina agreed in December to divest Grail, setting the stage for an upcoming ruling by judges, likely influenced by Emiliou’s advisory opinion.
Price Action: Illumina (ILMN) shares surged by 3.60% to $137.98 in Thursday’s trading session.
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