Brussels, 16/07/2009 (Agence Europe) - On Thursday 16 July, the Court of Justice of the European Communities ruled that the Commission could not be held responsible for the losses sustained by French firm Schneider Electric through its having to divest itself of the Legrand company (case C-440/07P). However, the Commission will have to pay electrical goods company Schneider compensation for the administrative costs incurred in the opening of a second merger control procedure. The acquisition of Legrand by Schneider in 2001 was declared incompatible with the common market. This decision was annulled by the Court of First Instance, because of procedural irregularities. The Commission resumed the procedure for investigating the transaction in 2002. In the meantime, in July 2002, Schneider concluded an agreement with Wendel-KKR to sell Legrand to it in December of that same year. This sale went ahead as planned, before the Commission completed its second investigation. Schneider then took the matter to the Court of First Instance on the grounds that the hasty sale of Legrand had occasioned it financial loss. The Court of First Instance ruled in favour of the company (see EUROPE 9466), but the Court of Justice has overturned this ruling. It takes the view that Schneider ought to have awaited the Commission's decision before its initial acquisition and that, furthermore, the sale of Legrand was not forced on it. (C.D./transl.rt)