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EU General Court backs first FSR dawn raid: Commission may require data from China-based servers; Chinese secrecy laws not a defence for non‑EU companies

Published on: 14 November 2024

Published by a LexisNexis Competition expert
Legal News
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Article summary

Nuctech’s five pleas

Nuctech advanced five pleas in its application to set aside the Commission’s decision. The General Court found three inadmissible because they were not sufficiently substantiated: that the Commission violated Nuctech’s right to the inviolability of business premises and its right to privacy; that the decision was arbitrary owing to inadequate evidence; and that Nuctech’s rights of defence were breached. The remaining two were examined on their merits: first, that the Commission breached public international law by requiring Nuctech to supply documents stored on servers in China; and, secondly, that compliance with the decision would inadvertently cause Nuctech to infringe Chinese law...

Commission has power to request information located outside the EU

In addressing the first plea—alleging a breach of public international law arising from a request for documents held in China—the Court noted it is commonplace for the Commission to issue an inspection decision to an undertaking incorporated outside the EU but carrying on operations within the Union’s market. Consequently, the Commission has authority to request information located beyond the EU where the company operates within it...

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