NEW YORK – Illumina said Tuesday that the European Court of Justice has ruled that the European Commission did not have jurisdiction over Illumina's acquisition of Grail.
While Illumina has already spun off Grail, the ruling wipes out a €432 million ($477.8 million) fine levied against the firm for "gun jumping."
The court also ordered the European Commission to pay costs incurred by Illumina and Grail, both in the court of first instance and in the appeal proceedings.
"Today's judgment confirms Illumina's longstanding view that the European Commission exceeded its authority by asserting jurisdiction over this merger," Illumina said in a statement. The firm noted that the US Federal Trade Commission also dismissed its case against Illumina and Grail on Aug. 15, following the divestment of Grail.
"The Commission misinterpreted [European competition regulations] by finding, in those decisions, that it could accept a request … in a situation where member states making that request are not entitled, under their national merger control rules, to examine the concentration which is the subject of that request," the ECJ wrote in its ruling.
Illumina recorded a $453 million loss in 2022 to cover the fine for violating the "standstill obligation" of mergers while the EC was completing a review of the deal. Illumina challenged the EC's jurisdiction in a 2021 lawsuit in the General Court of the European Union. In 2022, the General Court dismissed Illumina's suit and Illumina subsequently appealed to the ECJ.
Following its divestment of Grail in June, Illumina maintains a minority share of 14.5 percent in the company. In Tuesday morning trading on the Nasdaq, shares of Illumina were flat at $132.08.