by Foo Yun Chee
BRUSSELS, May 18 (Reuters) – Canon will have to pay a 28 million euro fine to the European Union (EU) in connection with the acquisition of a Toshiba subsidiary carried out without the prior authorization of the European Commission .
The General Court on Wednesday upheld a 2019 sanction imposed on the Japanese camera and printer maker for its 2016 acquisition of Toshiba Medical Systems.
Companies that enter into a deal without first obtaining EU regulatory approval or providing misleading information during the scrutiny can be fined up to 10% of their aggregate turnover, in under merger control rules.
In its 2019 ruling, the Commission said Canon broke the rules by carrying out a so-called “securitization” two-step transaction involving an interim buyer – MS Holding – to take over the medical unit Toshiba Medical Systems, before have obtained regulatory approval from the Commission. (French version Dina Kartit, edited by Kate Entringer)