Ruling paves way for UPS to sue European Commission

The European Court of Justice has annulled the 2013 European Commission ruling that forbid UPS from buying TNT. This now means UPS is likely to sue the EC for up to $2 billion.

The EC rejection of the UPS / TNT deal is believed to have paved the way for its arch rival FedEx to make the acquisition in 2016, which was approved by the Commission.

In a statement UPS says it is pleased that the court has ruled in their favour. “The judgment in UPS’s favour makes a number of points preserving a competitive environment in Europe by clarifying the procedure and relevant criteria for merger approval,” it said.

The EC had ruled that the €5.2bn acquisition of TNT was problematic as it had not offered enough concessions to reassure the Commission this would not affect competition.

The ECJ this week ruled that the EC had infringed rights of defence by using a different econometric model in its analysis than that used in its exchange of views and arguments with UPS.

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