Dyson fails to bag a multi-million pound win in EU court

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The UK household appliances maker has been in a decade-long fight with Brussels over what it describes as unfair energy label testing.

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Dyson has lost its battle to win £151.5 million (€176 million) in compensation from the European Commission for damages it claimed it faced due to energy label testing which it claimed was unfair to its bagless vacuum cleaners.

The British household appliances maker opposed the rules set by the EU in 2014, claiming the labels on vacuum cleaners were unsuitable for its technology. 

According to Dyson, these labels misled customers about the efficiency of certain vacuum cleaners and gave an unfair advantage to its German competitors.

 “The Court of Justice rejects all the arguments put forward by Dyson and thus upholds the judgment of the General Court. Consequently, the action for compensation brought by Dyson is dismissed definitively,” the court said in its judgment.

Sir James Dyson, the founder of Dyson, argued the regulation unfairly favoured vacuum cleaners with bags, discriminating against Dyson’s bagless technology.

“The energy label is a case study in bad regulation and its insidious effects. It cost Dyson over a hundred million pounds, diverting us away from what we should have been doing – innovating, inventing, and developing new products,” the founder said in a statement. 

In 2018, the General Court in Luxembourg sided with Dyson and overturned the labelling rules. However, the same court dismissed Dyson’s compensation claim, asserting that the company had not suffered losses due to the regulations.

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