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China Takes Legal Action Against EU Over Electric Vehicle Tariff Hike

China has launched a legal dispute against the European Union (EU) at the World Trade Organization (WTO) in response to the EU’s decision to raise import tariffs on Chinese electric vehicles (EVs). The case comes on the heels of an EU investigation that concluded Chinese carmakers benefit from state subsidies, giving them an unfair edge in the European market.

Key Details:

  1. WTO Complaint: China’s filing marks its second WTO challenge over higher tariffs, with the complaint aiming to address the EU’s determination that Chinese EV manufacturers benefit from unfair government support.
  2. Impact on Chinese Car Makers: The new EU tariffs range from 17% for BYD, 18.8% for Geely (Volvo’s parent company), to a significant 35.3% for SAIC Motor Corp, making it one of the most heavily affected companies.
  3. WTO Dispute Timeline: Under WTO dispute settlement rules, China and the EU have 60 days to negotiate a resolution. If unresolved, the case may proceed to a WTO panel ruling. However, the WTO’s highest appellate body remains inactive due to a shortage of judges, potentially complicating the resolution process.

The heightened tariffs, which took effect on November 1, reflect growing trade friction between Brussels and Beijing. EU officials argue that China’s subsidies and access to inexpensive raw materials have granted Chinese EV companies excessive leverage over European competitors. In response, Brussels is exploring solutions, such as adjusting price commitments, to address these market imbalances while upholding WTO principles.

Negotiations between the EU and Chinese officials are expected to intensify in the coming weeks, with an EU delegation likely to travel to China to pursue a compromise. Both sides aim to foster fair market conditions while respecting WTO guidelines.

Booking Holdings Loses EU Appeal In €1.63 Billion ETraveli Deal Ruling

Booking Holdings has lost its challenge to the European Union’s veto of its €1.63 billion acquisition of ETraveli, marking a significant victory for regulators and underscoring the bloc’s tougher stance on large-scale tech and platform deals.

European Court Backs Commission’s Merger Analysis

On Wednesday, Europe’s second-highest court sided with the European Commission, which blocked the deal in 2023 on the grounds that it would have deepened Booking’s market power and made it harder for competitors to challenge its position in online travel services.

The Luxembourg-based General Court rejected Booking’s claim that the Commission had failed to follow its own merger rules and had applied the wrong legal test. In its ruling, the court said regulators were correct to conclude that acquiring ETraveli, one of Europe’s leading online flight booking platforms, would have reinforced Booking’s already dominant position in online travel agencies tied to hotel bookings.

Why Regulators Stepped In

The case reflects a broader shift in European competition policy. In recent years, the Commission has intensified scrutiny of acquisitions by dominant technology and platform companies, warning that so-called “killer acquisitions” can weaken competition by absorbing smaller but strategically important rivals before they grow into serious threats.

For regulators, the concern was not simply the size of the transaction, but the strategic logic behind it: combining a major hotel booking platform with a leading flight booking operator could have created a more integrated travel ecosystem that rival firms might struggle to match.

What The Deal Would Have Added To Booking’s Portfolio

Booking’s portfolio includes Booking.com, Rentalcars, Priceline and Agoda, giving it broad reach across global travel services. ETraveli, owned by private equity firm CVC Capital Partners, operates brands such as Gotogate and Mytrip and also provides airline content distribution through TripStack.

The combination would have expanded Booking’s ability to offer a wider set of travel products within a single ecosystem, a model that can strengthen customer retention but also raise concerns about market concentration and competitive foreclosure.

Appeal Still Possible

The General Court’s ruling does not necessarily end the matter. Booking can still appeal to the Court of Justice of the European Union, the bloc’s highest court, if it chooses to continue the legal fight.

For now, however, the decision stands as a reminder that in Europe, even large and established platform companies face increasing resistance when acquisitions appear likely to consolidate power rather than expand consumer choice.

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