Illumina Wins Legal Battle Against EU Over Grail Acquisition

Illumina, a U.S. gene sequencing company, won a key legal battle against the European Union this week regarding its $7.1 billion acquisition of cancer diagnostic test maker Grail. The Court of Justice of the European Union (CJEU) overturned a previous decision by the EU’s General Court, which had allowed the European Commission to investigate the merger under Article 22, a rarely-used regulation.

The Commission had argued that the acquisition, while below the EU’s merger revenue threshold, could constitute a “killer acquisition” — where larger firms buy smaller, innovative companies to shut them down. However, the CJEU ruled that the Commission overstepped its authority and annulled the decision, stating that such mergers must adhere strictly to the established revenue thresholds.

This decision means Illumina is no longer liable for a €432 million fine imposed by the Commission for completing the merger without prior approval. The ruling also nullifies the EU’s order for Illumina to divest Grail, which it had spun off in June to comply with the EU’s previous directive.

EU antitrust chief Margrethe Vestager said the Commission will review the judgement’s implications for future merger reviews.