Illumina Wins Appeal in Europe Over Grail Acquisition, Avoids €432M Fine

On Tuesday, Illumina announced that the European Court of Justice has ruled in favour of the company, determining that the European Commission lacked jurisdiction over Illumina’s acquisition of Grail, this ruling eliminates a €432m (roughly £364m) fine imposed on Illumina for “gun jumping.”

Additionally, the court ruled that the European Commission are to cover the legal costs incurred by both Illumina and Grail, including expenses from both the initial trial and the appeal. Illumina noted that the US Federal Trade Commission had dropped its case against Illumina and Grail on Aug. 15, after the divestiture of Grail.

According to the ECJ’s ruling, the European Commission “misinterpreted European competition regulations” by accepting a request to investigate the merger, even though the member states involved did not have the authority to assess the deal under their national merger rules.

In 2022, Illumina set aside £355 million to cover the fine related to violating the “standstill obligation” during the European Commission’s review of the acquisition. Illumina initially contested the Commission’s jurisdiction in a 2021 lawsuit, but the General Court of the EU dismissed the case in 2022. The company then appealed to the European Court of Justice.

Following the spin-off of Grail in June, Illumina still holds a 14.5 percent minority stake in the company. As of Tuesday morning, Illumina’s stock price remained steady at £105.02 on the Nasdaq.