The Ministry of Economics is following the case of the Court of Justice of the European Union "C-611/22 P Illumina/Grail" against the European Commission (hereinafter - the Case). In this matter, the Ministry responded to the arguments presented by the Latvian Startup Association (Startin.lv) and the Latvian Chamber of Commerce and Industry, which actualised the possible impact of the Case on the development of the Latvian startup ecosystem.
The basis of the case is a dispute over the supervisory warrant established by the European Commission in the case of mergers and acquisitions of companies, which may also affect the companies of the Republic of Latvia, especially start-ups, including affecting their growth, as well as create a general impact on the investment environment for the following reasons:
- The rights of the European Commission to permit or prohibit concentration have significantly expanded in cases where formal compliance with Council Regulation (EC) No. 139/2004 (January 20, 2004) on control of concentrations between undertakings for Article 22.
- The merger or acquisition transaction process may be significantly delayed due to additional bureaucratic requirements or legal uncertainty. This can create challenges for Latvian companies that depend on conducting such transactions to ensure the development of companies and the attraction of investments.
These factors are essential for Latvia, where mergers and acquisitions are very important both for the development of companies (especially start-ups) outside the borders of the country or the European Union, and for the development of products or services in the internal market, in the context of attracting foreign investment in Latvia.
The outcome of the Case is important to the Ministry of Economics, considering that it may affect the further growth opportunities of Latvian companies in the future.