Two important Merger Regulation judgments: the implications of Schneider-Legrand and Tetra Laval-Sidel

Article abstract:

The Court of First Instance annulled the Commission's merger control decisions in two expedited procedure cases, primarily for factual errors, for failing to meet the burden of proof, and on procedural grounds. The Court accepted that the Commission can prohibit conglomerate mergers on the basis of 'leverage' arguments (using power in one market to restrict competition in a related market), but held that the Commission must prove both an incentive to leverage and the likelihood of it. The Commission recognises that these judgments mean that it must improve its procedures in competition cases, but what is suggested so far is not satisfactory.