Aer Lingus Group v Commission (Competition) [2010] EUECJ T-411/07 (06 July 2010)

Aer Lingus Group v Commission (Competition) [2010] EUECJ T-411/07 (06 July 2010)

The Commission cannot require divestment of a minority shareholding under Article 8(4) and (5) of the merger regulation unless control, as defined in Article 3, has been acquired. Since Ryanair's shareholding did not confer control, no concentration was implemented, and the Commission lacked the power to act....

Source-derived case information.

Citation
[2010] EUECJ T-411/07
Parties
Applicant: Aer Lingus Group plc; Respondent: European Commission; Intervener: Ryanair Holdings plc
Jurisdiction
European Union
Judgment Date
06 July 2010
Procedural Posture
Action for Annulment / Final Judgment
Outcome
action dismissed
Legal Topics
Merger Control, Concentration Definition, Commission Powers, Minority Shareholding, Restorative Measures, Jurisdiction of National Authorities
Competition Law European Union Law Merger Control Concentration Definition Commission Powers Minority Shareholding Restorative Measures Jurisdiction of National Authorities

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 13 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Aer Lingus Group plc

Applicant

European Commission

Respondent

Ryanair Holdings plc

Intervener

Procedural Posture

Action for Annulment / Final Judgment

Legal Issues

  1. 1 Whether the European Commission has the power under Article 8(4) and (5) of Council Regulation (EC) No 139/2004 to require divestment of a minority shareholding acquired as part of a prohibited concentration where control was not acquired.
  2. 2 Whether Article 21(3) of the merger regulation precludes national competition authorities from acting in respect of such a minority shareholding.

Ratio Decidendi

The Commission cannot require divestment of a minority shareholding under Article 8(4) and (5) of the merger regulation unless control, as defined in Article 3, has been acquired. Since Ryanair's shareholding did not confer control, no concentration was implemented, and the Commission lacked the power to act. Article 21(3) does not grant the Commission interpretative authority and does not preclude Member States from applying national law to non-controlling minority shareholdings.

Court Disposition

action dismissed

Orders

  • Action dismissed in its entirety.
  • Aer Lingus Group plc ordered to bear its own costs and those incurred by the Commission and Ryanair Holdings plc, including those relating to the interim proceedings.