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Brussels – The European Commission overstepped its powers by investigating the merger of American pharmaceutical companies Illumina and Grail, who wanted to work on a new type of cancer test, the Court of Justice said in a new ruling on Tuesday. The merger was ultimately blocked by the Commission.

In 2020, the start-up Grail announced that it would be acquired by Illumina. Since Grail was not active in the European Union, the merger was not notified to the European Commission, which ensures that such mergers do not distort the market.

At the urging of several member states, including Belgium, the Commission decided to investigate the matter anyway. Despite protests from Illumina, the General Court of the European Union, which is part of the Court of Justice, decided in the summer of 2022 that the Commission indeed had the right to do so.

But now the Court overturns that decision. If national competition authorities are not competent to investigate a certain merger, they should not refer the matter to the Commission to do so, it says. The ruling undermines the legal basis for all other decisions of the Commission in the case. For instance, it prohibited the merger and fined Illumina for proceeding with the operation despite this.

The ruling is quite technical but has significant precedent value. There are no further consequences for the merger of Illumina and Grail, as it has already been completely reversed. (09/03/2024)