A European Union court ruled that the European Commission wrongfully blocked UPS from acquiring Dutch carrier TNT Express in 2013, which paved the way for rival FedEx to pick up TNT in 2016, according to Reuters.
While this won’t unwind the merger, UPS may be eligible for damages from the EU as a result of the ruling.
[Related: UPS Acquires Truck Brokerage Firm Freightex]
At the time of its denial of UPS, the EC said the carrier hadn’t made its case that the merger with TNT wouldn’t hurt consumers due to monopolistic factors. UPS argued in court that the EC based its decision on a different econometric model than what it has used previously in the case.
“While the decision in UPS’s favor makes a number of points, the most significant of this decision is its impact in helping to preserve a competitive environment in Europe by clarifying the procedure and relevant criteria for merger approval,” UPS said in a statement.
You can read the entire account here.