European Commission sanctions provision of misleading information in EU Merger Regulation investigation

 

European Commission sanctions provision of misleading information in EU Merger Regulation investigation

The European Commission has fined Sigma-Aldrich EUR7.5 million for providing incorrect or misleading information during the Commission's investigation of Merck's acquisition of Sigma-Aldrich.

Sigma-Aldrich failed to disclose to the Commission an innovation project linked to the divested business.  The Commission found indications that this was intended to avoid the transfer of the relevant project to the purchaser of the divestment business.

The Commission has imposed fines on merging companies for provision of misleading information on two occasions, both in the last five years.  In 2017 it fined Facebook EUR110 million in relation to its acquisition of WhatsApp.  In 2019 it fined GE EUR52 million in relation to its acquisition of LM Wind.

These cases are a reminder of the importance of provision of accurate and complete information in merger investigations and where the consequences of getting it wrong are costly.

https://ec.europa.eu/commission/presscorner/detail/en/ip_21_2181