EU Opens Public Feedback Process on Landmark Merger Rule Overhaul

The initiative, led by the European Commission, reflects growing pressure from several EU member states and industry groups to adopt a more accommodating stance toward mergers that could strengthen the global competitiveness of European firms. According to European Commission, the overhaul aims to modernize competition policy in response to shifting economic realities and global market pressures.

Speaking at a press conference on Wednesday, EU antitrust chief Teresa Ribera confirmed the next step in the process. “From tomorrow, you will be able to see the draft merger guidance that will be open for public consultation on our website,” she said, according to Reuters.

The proposed changes are expected to encourage cross-border mergers within the EU, allowing companies to scale up beyond national markets. Sources familiar with the matter told Reuters that regulators want to make it easier for businesses to pursue acquisitions across member states rather than limiting consolidation to domestic deals.

The reforms also introduce new arguments companies can use when seeking approval for mergers. Firms will be able to highlight potential benefits such as innovation, sustainability, resilience, investment, and job creation. However, according to Reuters, convincing regulators may prove challenging, as authorities have traditionally prioritized concerns over consumer harm and reduced competition.

The shift could particularly benefit startups, which may find it easier to secure approval for deals by emphasizing innovation gains, per to Reuters. At the same time, regulators are likely to remain cautious when large technology companies are involved, amid concerns that acquisitions could be used to eliminate emerging competitors.

The consultation process marks a significant moment for EU competition policy, with policymakers attempting to strike a balance between fostering industrial growth and maintaining fair market conditions.

Source: Reuters