BRUSSELS, May 18 (Reuters) - Japanese camera and printer
maker Canon lost its challenge against a 28 million
euros ($29.4 million) EU fine on Wednesday after Europe's
second-top court upheld the sanction imposed for jumping the gun
in a 2016 acquisition.
Companies which close a deal without first securing EU
regulatory approval or provide misleading information during the
regulatory review can face fines up to 10% of their aggregated
turnover under EU merger rules.
The European Commission in its 2019 decision said Canon
breached the rules by using a so-called "warehousing" two-step
transaction structure involving an interim buyer to purchase
Toshiba Corp's medical unit before gaining regulatory
The unorthodox method allowed Toshiba, which was struggling
for cash after an accounting scandal, to book proceeds in time
for the financial year-end ending in March.
The Luxembourg-based General Court backed the EU competition
"The (European) Commission was therefore right to observe
that the Court's case-law distinguishes between the concepts of
'concentration' and 'implementation of a concentration'," judges
In a recent gun-jumping case, the EU competition watchdog
ordered U.S. life science company Illumina's to keep
cancer detection test maker Grail Inc as a separate
company after the former completed the deal while still waiting
for the regulatory green light. The case is still pending.
The Commission has in recent years handed out stiff fines to
Meta, General Electric and German drugmaker Merck
KGaA for giving misleading information during reviews of their
The case is T-609/19 Canon V Commission.
($1 = 0.9515 euros)
(Reporting by Foo Yun Chee; editing by David Evans)