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In a finding that could have wide implications for future investigations, the EU’s General Court last week partially annulled the Commission’s 2009 raid on Nexan’s headquarters after finding a lack of reasonable grounds for the inspection. The judgment is a significant win for the Brussels office of New York law firm White & Case, which acted for the French power cable company in its challenge of the investigation into the sector.
Exceeded powers
The court found ‘that the Commission overly extended the subject-matter and purpose of the inspection and undertook a “fishing expedition” at the premises of Nexans France’.
Following the 2009 raid, White & Case lodged an appeal to contest several irregularities. Partner Mark Powell argued that the Commission’s reasons for ordering the raid were too broad, and that the authorities had exceeded their powers by removing a copy of an entire hard-drive and four DVD-ROMs for subsequent review in Brussels.
Due process
The court found that the Commission knew there were differences between different types of electrical cables at the time of the dawn raid decision and had erred by including ‘all electrical cables’ within the scope of its investigation.
‘Around the world, there is an emerging trend towards due process rights being recognised by the courts in cartel cases. Today’s judgment is another step towards the practical recognition of due process rights including of privacy and of rights of defence in Europe,’ said White & Case partner Mark Gidley.
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