Statement from ACT founder Mike Sax on the CJEU Ruling in the Illumina/GRAIL Appeal Case – September 3rd, 2024

Statement from Mike Sax, founder and chairperson of ACT | The App Association, on the 3 September 2024 CJEU Ruling in the Illumina/GRAIL Appeal Case:

“We welcome the ruling by the Court of Justice of the European Union (CJEU) in the Illumina/GRAIL appeal case. This decision is a win for small businesses across Europe, especially for those driving innovation and growth in rapidly evolving sectors that the app economy is transforming.”

“Small businesses are the driving force of the digital economy, bringing fresh ideas and disruptive technologies to the market. However, the European Commission’s (EC) expanded interpretation of Article 22 of the EU Merger Regulation had created an environment of uncertainty for SMEs. The prospect of mergers and acquisitions being subject to unpredictable regulatory reviews, even when well below established thresholds, created a real risk to innovation and SME growth.”

“A barrier to exit is a barrier to entry. When entrepreneurs face heightened uncertainties and undue difficulties in getting acquired, it becomes much harder for them to secure the necessary funding from the outset. Excessive government scrutiny of mergers stifles the growth potential of innovative businesses and diminishes the opportunities available to our members.”

“The CJEU’s ruling restores much-needed legal certainty, reaffirming that only mergers meeting clear and established thresholds will be subject to review, and protecting the small businesses and startups the App Association represents from improper exposure to the EC’s complex and burdensome regulatory processes. It is a positive step forward in supporting the growth and competitiveness of SMEs in the European Union.”