The European Union General Court ruled that Brussels has the authority to regulate the merger between US biotech groups Illumina and Grail. Grail has no commercial presence in Europe and its operations are primarily in the US.

Why should we care?
Illumina said it would appeal the decision in the European Court of Justice, but, if the General Court’s ruling is upheld, then corporate oversight structures in the EU and US may become polar opposites. In the US, a recent Supreme Court ruling curtailed the EPA’s ability to regulate emissions without explicit Congressional approval—and may weaken the SEC and other financial regulators in the coming months. If the EU adopts a more muscled approach to oversight, even placing companies based outside the EU in its crosshairs, then major US-based companies may continue to face substantive compliance standards, albeit from a foreign authority. These legislative switches are destined to affect tech organizations the greatest, as they undergo the most M&As out of any other sector. Since February, over 100 companies and investors have lobbied to shape the EU’s regulatory landscape in their image; the General Court’s ruling (which they largely don’t approve of) may be one of many steps moving the EU away from the laissez-faire approach these corporations favor.