BRUSSELS, Nov 29 (Reuters) - EU antitrust regulators on

Friday ditched a merger tool aimed at killer acquisitions two

months after Europe's top court vetoed this expanded merger

power which had been widely criticised by companies as

regulatory over-reach.

The Luxembourg-based Court of Justice in September sided

with Illumina ( ILMN ) in its fight against the European

Commission's decision to wield a power called Article 22 to

assess its $7.1 billion Grail bid even though it was

below the EU's merger revenue threshold.

"In view of this judgment and in line with the principle of

good administration, the Commission has decided to withdraw its

Guidance," the EU executive said in a statement.

The Guidance issued in March 2021 allowed the EU antitrust

watchdog to encourage or accept requests from national

competition agencies to examine mergers even when these deals

fall outside their competence.

The EU competition enforcer had in recent years used this

power against so-called killer acquisitions in which big

companies buy startups to shut them down, especially in the

technology and pharmaceutical sectors.

The Commission said it may look to other methods to catch

killer acquisitions.

"The withdrawal of the Guidance is without prejudice to any

future initiative by the Commission in relation to transactions

involving small and medium-sized enterprises or small midcaps

that fall below relevant jurisdictional thresholds," it said.