The European Court of First Instance has dealt the EU Competition Commission another body blow by deciding to overturn its controversial veto of a merger between France's Schneider Electric and rival Legrand.

It is the second time in just over four months that the court has overruled the commission and in both cases it was sharply critical of the quality of the commission's evidence. Corporate lawyers say this will add pressure for more radical reform than the commission has until now been willing to contemplate.