The Court of Justice of the European Union (CJEU) has delivered a significant ruling in Case C-883/19 P, concerning HSBC Holdings and its subsidiaries. The case revolves around a fine of €33.6 million that was initially imposed by the European Commission for alleged anti-competitive practices in the Euro Interest Rate Derivatives (EIRD) market.

In December 2016, the European Commission found that HSBC, along with Crédit Agricole and JPMorgan Chase, had engaged in a single and continuous infringement that restricted competition in the EIRD sector. Following this, HSBC appealed the decision, leading to a judgment by the General Court in September 2019, which upheld the Commission's findings but annulled the fine due to insufficient reasoning.

HSBC sought further annulment of the General Court's judgment, particularly the parts that dismissed its action. The CJEU's recent ruling sets aside the General Court's dismissal of HSBC's appeal but maintains the annulment of the fine. The CJEU identified errors in the General Court's reasoning regarding the presumption of innocence and the test applied to assess HSBC's arguments about the pro-competitive effects of their discussions.

While the CJEU dismissed HSBC's challenge against the finding of participation in the cartel, the ruling emphasizes the importance of proper legal reasoning in competition law cases. The case highlights ongoing scrutiny in the financial sector regarding compliance with competition regulations.