Home News Business News UPS filed a lawsuit against the EU for 2.1 billion USD

UPS filed a lawsuit against the EU for 2.1 billion USD

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The US company United Parcel Service (UPS) has filed a lawsuit against the European Union worth 1.7 billion EUR (2.1 billion USD) for the damage it claims to have suffered when regulators mistakenly halted its experience to acquire its competitor TNT Express. UPS has asked the EU Court to award compensation, plus interest and taxes, which it will pay for unexpected costs. The same court rejected the veto over the deal in 2013 as the regulators did not inform the Atlanta-based logistics giant about a change in the economic model used to assess the evidence.
The company wants “to be put in the position it would have been if the unlawful decision was not adopted”, says the complaint. The blocking of the transaction has not allowed UPS to materialize the benefits associated with the proposed transaction.
The EU has become one of the toughest regulatory hurdles in the world for big acquisitions, demanding heavy concessions from global companies to reassure the fears of how a deal could affect competition in Europe. The companies are increasingly turning to the EU courts to verify the Commission’s powers, challenging its decisions to launch inspections, the issues it deals with in investigations, and the ways in which it negotiates concessions with companies.
Neither UPS nor the European Commission responded immediately to the request for a comment. The UPS dispute is part of the series of cases where the EU competition unit has been under pressure.
For example, HeidelbergCement lost the case, claiming that the EU is not the regulator to investigate the acquisition of Cemex. The company also asked the court to reject the EU veto over the deal last year.
Telecom Royal KPN, however, successfully struggled to approve the acquisition of competing Dutch cable television, with officials criticizing the lack of reasons why the deal would hurt competition. The EU is now also re-evaluating the deal between Liberty Global and Ziggo.
Along with the claim for compensation, there is also a separate legal battle over the investigation of the UPS-TNT deal. EU regulators refer to the EU High Court because of the court’s decision. They argue that the judgment of the General Court gives them less freedom in the extremely important last weeks before the deadline for deciding whether or not the transactions should be approved.