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European Union

General Court of the European Union Annuls Commission's Decision Against UPS and TNT Express

Strategic Insights

— 1 min read

The Court of Justice of the European Union's General Court has issued a judgment in favor of ASL Aviation Holdings DAC and ASL Airlines (Ireland) Ltd, annulling the European Commission's Decision C(2013) 431 declaring a concentration between UPS and TNT Express incompatible with the internal market. The applicants had entered into agreements with TNT to acquire its air transportation business, but the Commission prohibited the concentration, citing concerns about effective competition on specific markets.

Key Takeaways:

  • The General Court annulled the European Commission's Decision C(2013) 431 declaring a concentration between UPS and TNT Express incompatible with the internal market.
  • The applicants, ASL Aviation Holdings DAC and ASL Airlines (Ireland) Ltd, had entered into agreements with TNT to acquire its air transportation business, but the Commission prohibited the concentration.
  • The Commission had considered the concentration a significant impediment to effective competition on markets in 15 Member States.
  • The General Court found that the Commission had breached the fundamental rights of the applicants and UPS, and that the Commission's assessment of the concentration contained serious and manifest errors.
  • The Court ordered the Commission to pay the costs of the action.
  • The decision is significant as it highlights the importance of ensuring that decisions by EU institutions respect the rights of individuals and companies.
  • The judgment is related to Case T-194/13, United Parcel Service v Commission, which was annulled by the General Court on 7 March 2017.

Statistics:

  • The Commission prohibited the concentration of UPS and TNT Express on 30 January 2013.
  • The General Court annulled the Commission's decision on 7 March 2017.
  • The Court of Justice dismissed the Commission's appeal against the judgment of 7 March 2017 on 16 January 2019.
  • The applicants won the case and were awarded compensation of EUR 93 881 731.
  • The Commission was ordered to pay the costs of the action.

Sources:

  • Judgment of the General Court (Seventh Chamber, Extended Composition) of 23 February 2022.
  • Commission Regulation (EC) No 802/2004 of 21 April 2004.
  • Regulation (EC) No 139/2004 of 20 January 2004.
  • Judgment of 13 December 2018, European Union v Kendrion, C-150/17 P, EU:C:2018:1014.
  • Judgment of 4 July 2000, Bergaderm and Goupil v Commission, C-352/98 P, EU:C:2000:361.

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