The European Court of First Instance (CFI) has found the European Commission liable for damages for a breach in procedure in its review of the Schneider/Legrand merger in 2001. The Commission’s prohibition of the proposed merger was quashed in an earlier Judgment by the CFI on the grounds that the Commission’s reasoning was deficient and the rights of the defence had been breached. Schneider sued the Commission for damages alleging deficient reasoning and breach of procedural rights. The CFI upheld Schneider’s claim but only insofar as it related to damages arising from a breach of its procedural rights. The CFI stated that the Commission enjoyed a wide margin of discretion in carrying out its review of a merger and even deficient reasoning in this analysis may not give rise to a claim for damages. The CFI awarded damages for the cost of suspending the divestment of Legrand by Schneider and re-notification of the merger. (Case T-310/01)