EU Announces Plans to Gather Feedback on Merger Rules Overhaul

BRUSSELS – The European Union has unveiled plans to seek public feedback on a proposal to reform its merger regulations, marking the first major overhaul in over two decades. The move aims to address calls for more flexible rules that could facilitate the creation of European business champions through cross-border acquisitions.

Starting Thursday, the European Commission will open the draft merger guidance for public consultation, according to EU antitrust chief Teresa Ribera. "From tomorrow, you will be able to see the draft merger guidance that will be open for public consultation on our website", Ribera announced at a press conference.

A Push for Scale and Flexibility

The proposed changes are intended to make it easier for companies to expand their scale through cross-border deals rather than relying solely on national mergers, sources familiar with the matter told Reuters. This initiative follows increasing pressure from some EU member states and businesses to adopt a more lenient approach to mergers, particularly those focused on fostering European industrial champions.

Under the revised rules, companies may have greater opportunities to highlight a range of benefits, such as innovation, sustainability, resilience, investment, and employment. However, experts caution that convincing regulators of such benefits may prove challenging, as regulators typically prioritize consumer protection and competition concerns.

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Opportunities for Startups, Challenges for Big Tech

The revisions could streamline the approval process for startups that claim their mergers will drive innovation. However, mergers involving major technology companies may face heightened scrutiny, particularly if there are concerns about larger firms acquiring smaller rivals to eliminate competition.

The proposed changes reflect the EU's ongoing efforts to balance economic competitiveness with the need to safeguard fair market conditions. As the consultation process begins, businesses and stakeholders will have the chance to voice their perspectives on how the new rules should take shape.

(Reporting by Foo Yun Chee; Editing by Peter Graff)

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