. . . In Brief

• Author: International Law Group
• Pages: 19-20

Page 19

EU Court of First Instance upholds EC Commission's veto of GE-Honeywell merger

On December 14, 2005, the European Court of First Instance (CFI) handed down a ruling that generally supported the EC Commission's 2001 rejection of the proposed $42 billion merger of General Electric and Honeywell. The CFI agreed with the Commission's finding that the companies "pre-existing dominant position on the market for jet engines for large regional aircraft would be strengthened." In the court's view, a GE and Honeywell combination in engines for corporate jet aircraft and for small marine gas turbines would bring about "dominant positions" in those markets. On the other hand, the CFI criticized aspects of the Commission's rationale. Specifically, the CFI found that the Commission had not convincingly shown that the merger would create "conglomerate effects," that is, advantages based on a company's capacity to bundle many services into one basket, thus offering better deals and undercutting competition. Spokespersons for all three parties -- the Commission (Europe's top competition authority), General Electric and Honeywell -- said they had found things to praise in the CFI's ruling.

Citation: The New York Times, Brussels, Wednesday, December 15, 2005, Section C, page 7; 2005 WLNR 20104269 (byline of Paul Meller).

EU steps up controls of cash entering or leaving its territory

The European Union (EU) is tightening its control of cash that is entering or leaving the EU with Regulation 1889/2005. A "regulation" applies directly to the EU Member States from its effective date. The purpose is to provide harmonized rules for the control of cash, including negotiable instruments, promissory notes, money orders, and currency. Any person entering or leaving the EU and carrying EURO 10,000 or more in cash must file a declaration. The EU will collect, process and circulate this information among the Member States. The Regulation will enter into force on June 15, 2007.

Citation: 2005 O. J. of European Union (L 309) 9, 25 November 2005.

EU issues sweeping directive to control money laundering and terrorist financing

The European Union (EU) has...