EU Merger Control: Compensation For Losses Due To Illegal Prohibition Decision

The Court of First Instance (CFI) confirmed on 11 July 2007 that Schneider Electric must be compensated by the European Commission for certain losses arising from the European Commission’s illegal prohibition in 2001 of Schneider’s acquisition of Legrand.

The CFI has decided that Schneider should be compensated for:

• the expenses Schneider incurred in dealing with a resumed EU merger review of the acquisition, following the annulment of the European Commission’s original decision to prohibit the transaction; and

• the reduction in sale price of Legrand which Schneider had to concede to the purchaser in order to obtain postponement of the sale while Schneider was waiting for the outcome of the resumed merger control procedure.