Thomas Cook Group has lost its compensation claim for £500m over the blocking of MyTravel’s proposed takeover of First Choice in September 1999.

The European Court has dismissed its claim for damages against the European Commission claiming the commission did not” manifestly and gravely” infringe Community law. The company has two months to decide whether to appeal.

Thomas Cook said it is “disappointed with this decision”.

It said the decision will not affect the Thomas Cook Group which had not assumed it would receive any compensation in its budget and forecasts.