- 26 February 2018
- Transport / Logistics Services
UPS is suing the European Union for damages when UPS claims regulators wrongly vetoed its attempt to take over European parcel express company TNT.
The US logistics firm is suing the EU for €1.7 billion through the EU General Court for compensation as well as interest and taxes it would pay on any windfall payment. The case was filed in December last year but was published in the EU Court’s filing on Monday.
The EU General Court threw out the EU veto against UPS in 2013 as merger watchdogs failed to tell the logistics company that they had changed an economic model that was used to weigh the evidence.
According to UPS it wants to “be put in the position it would have been in had the unlawful decision not been adopted”, it said in the filing. Further, blocking the deal prevented UPS“from materialising the benefits associated with that proposed transaction”.
The EU competition authorities have developed a reputation for being one of the toughest regulatory hurdles where it comes to big takeovers. It regularly demands big concessions from global companies to deal with concerns of how such buy outs might hurt competition in Europe. Increasingly, companies are challenging these rulings in EU courts to try to check the EU’s powers.
“The compensation being sought corresponds to what we believe, through objective assessments verified by expert third parties, to be the value of the opportunity wrongly prohibited by the European Commission, ” UPS said in a statement.
The commission said it would defend itself in court. It is appealing the court ruling that overruled its decision to block the deal.