UPS Loses Compensation Bid in EU
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UPS Inc. lost a court fight for about $2 billion in compensation over the European Commission’s 2013 botched veto of its takeover bid for TNT Express.
The European Union’s General Court on Feb. 23 dismissed the challenge, deciding that UPS failed to show how it had suffered damage.
The dispute kicked off soon after UPS scrapped its 5.16 billion-euro ($5.9 billion) bid in early 2013, following warnings of an impending EU veto over concerns the deal would have shrunk competition for express delivery services. Almost three years later, the commission gave unconditional approval to American rival FedEx Corp. to buy TNT.
The EU’s top judges eventually threw out the commission’s ban, saying the bloc’s merger watchdog had unfairly treated UPS by making a last-minute change to the econometric model it was using to analyze the transaction.
The victory came too late for UPS to resurrect its deal. But Atlanta-based UPS sued the European Commission in December 2017, claiming 1.74 billion euros in compensation plus interest and taxes it would pay on any windfall payment.
“This case is about the rule of law and integrity of the commission’s merger review process,” UPS said in a statement. “While we are pleased that the court acknowledged that UPS’ rights were not upheld, we are disappointed that it did not award damages.”
UPS said it will decide on its next steps after having reviewed the ruling.
UPS ranks No. 1 and FedEx No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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