A PYMNTS Company

EU Regulators to Reassess Criteria for Assessing Companies’ Market Influence

 |  April 2, 2024

European Union antitrust regulators are set to review decades-old rules that govern market power and competitive practices, announced Margrethe Vestager, Europe’s antitrust chief, on Monday.

Vestager’s announcement follows mounting criticism from legal experts and academics who argue that the EU’s current antitrust laws are outdated, particularly concerning mergers. The existing rules, dating back to 1997, are due for a reassessment as globalization and digitization have drastically altered market structures and consumer behaviors over the past two decades. Vestager emphasized the need for regulatory guidelines that accurately reflect the present economic landscape and provide clear and consistent frameworks for addressing antitrust issues across various industries.

Read more: Vestager Steps Down, Reynders Takes Charge of EU Competition Policy

Speaking at the Chillin Competition conference, Vestager highlighted the significance of redefining market parameters to gauge a company’s pricing influence in mergers and its ability to stifle competition. The review will particularly focus on updating the Market Definition Notice to ensure relevance and accessibility, inviting feedback from stakeholders.

One critical aspect of the review will be reevaluating the geographic scope of markets. Vestager cited the case of Siemens and Alstom, whose merger proposal was rejected earlier this year, underscoring the importance of considering global competitors in market assessments.

Moreover, regulators will scrutinize how markets are delineated in terms of products, especially in the digital sphere where offerings can be multifaceted and consumer switching costs vary.

Source: CA Movies Yahoo