Competition Drives Europe's Competitiveness
In April 2026, the European Commission published its draft revised EU Merger Guidelines for public consultation. The revised Guidelines are intended to reflect the Commission's decisional practice and case law of the past 20 years, as well as changing economic realities, new challenges and emerging issues in the assessment of corporate mergers. Seven national competition authorities from medium-sized EU Member States – Austria, Belgium, the Czech Republic, Greece, Ireland, the Netherlands and Portugal – welcome this initiative and have issued a joint statement.
Joint Statement by the Seven Competition Authorities
The joint message is clear: competitiveness and sustainable economic growth are driven by effective competition. Competition fosters innovation, encourages investment and secures long-term prosperity. At the same time, protecting competition remains the primary objective of EU merger control.
Size Alone Is Not a Competitive Advantage
Cross-border mergers can promote innovation, strengthen the internal market and generate efficiencies. The competition authorities therefore support mergers that enhance competition and create economic benefits.
At the same time, the authorities caution against relaxing merger control solely to facilitate the creation of larger companies. Size is not an objective in itself. What matters is preserving effective competition. Excessive market concentration can lead to higher prices, reduced consumer choice, and less innovation and investment.
Competition and Public Interest Considerations Go Hand in Hand
The competition authorities welcome the fact that the European Commission's draft also considers issues such as resilience, sustainability and cross-border integration within the EU. However, these factors should only be taken into account in merger assessments where they have a demonstrable positive impact on competition in the specific case.
The joint statement emphasises that both the potential benefits and the potential risks of a merger should be assessed on the basis of sound economic analysis, robust evidence and clear legal standards. This provides legal certainty for businesses while ensuring effective competition.
SMEs Need Open and Competitive Markets
The competition authorities place particular emphasis on small and medium-sized enterprises (SMEs). SMEs are the backbone of the European economy and depend on open markets and effective competition. Excessive market concentration can weaken their bargaining position and limit their opportunities for growth.
The joint statement therefore underlines that Europe's competitiveness is strengthened not through less competition, but through open markets, innovation and fair competitive conditions for businesses of all sizes.
"Competition is not an obstacle to growth – it is a precondition for it. Companies invest, innovate and grow where they must compete. Small and medium-sized enterprises account for 99% of all businesses in Austria and form the backbone of our economy. They are key drivers of innovation, employment and growth, and they benefit particularly from open markets and effective competition. This is precisely why Europe needs modern merger control that enables economic development while safeguarding competition," said Natalie Harsdorf, Director General of the Austrian Federal Competition Authority.
The seven competition authorities reaffirm their support for the course taken by the European Commission and will continue to work closely with the Commission to safeguard open markets, a well-functioning internal market and effective competition across Europe.
AFCA Submitted Comments on the Draft Merger Guidelines
AFCA Position Paper (in German available)
The Austrian Federal Competition Authority (AFCA) welcomes the update and modernisation of the Merger Guidelines, including the integration of the previously separate treatment of horizontal and vertical mergers into a single document.
In June, AFCA submitted its comments on the draft revised Merger Guidelines as part of the European Commission's public consultation. In its submission, AFCA emphasised, among others, the following key points:
- AFCA welcomes the modernisation of the Merger Guidelines and the integration of horizontal and vertical merger assessment into a single set of guidelines.
- Competitiveness is driven by effective competition. AFCA welcomes that the draft remains firmly focused on protecting competition and consumer welfare, rather than responding to calls for a relaxation of merger control in favour of creating European Champions.
- Resilience and sustainability may be taken into account, but only where they constitute relevant parameters of competition in the specific case.
- Efficiencies generated outside the affected market should not come at the expense of consumers. The decisive factor remains that consumers in the relevant market must not be worse off as a result of the merger.
- So-called "killer acquisitions" must continue to be assessed rigorously. The proposed "innovation shield" should not make it easier for anti-competitive acquisitions of innovative companies to proceed.