EU signals openness to bigger mergers in major rule overhaul

The European Union's top competition officials are signaling that deals helping companies scale up and innovate will receive a more favorable hearing, as Brussels moves to finalize its first overhaul of merger rules in more than two decades.

A Shift in Brussels

Anthony Whelan, the head of the European Commission's competition directorate, has indicated greater willingness to consider large corporate mergers that could boost investment, innovation, or resilience in the bloc, according to the Financial Times. The move reflects a broader effort in Brussels to help European companies compete with rivals in the United States and China — a theme that has dominated EU economic policy debates throughout 2026.ft+1

The Commission published draft merger guidelines on April 30, 2026, marking what lawyers and officials have called the most far-reaching revision of EU merger assessment in over 20 years. In a global first, the draft rules allow companies to present a "theory of benefit" — a structured argument that a deal generates efficiencies in areas such as sustainability, resilience, investment, and innovation — to counter regulators' traditional focus on consumer harm. A separate "innovation shield" was introduced to give startups and small innovative companies a clearer pathway to favorable treatment in deal reviews.crowell+4

EU competition commissioner Teresa Ribera has walked a careful line, telling Bloomberg in April that "if anyone thought that this call for the creation of champions was an argument to deregulate, dismantle or reduce safeguards, they are mistaken". At the same time, she has championed the guidelines review as a way to ensure merger control is "fit for purpose" in fast-moving markets.Reuters+1

Siemens Lawyer Calls for Workable Safe Harbor

Separately, Saar Dierckens, head of legal competition at Siemens, argued on Tuesday that the Commission should adjust the terms of its proposed safe harbor for startup acquisitions to make it workable. Under the draft guidelines, deals involving startups would be spared intrusive merger review, but the shield does not cover acquisitions by a market's largest player or by companies designated as "gatekeepers" under the EU's Digital Markets Act — a category that includes Google Alphabet Inc. ↘ 0.99%, Apple ↗ 0.23%, and Amazon Amazon.com, Inc. ↘ 1.34%.mlex+2

Dierckens suggested the text should not be "overly strict" on digital gatekeepers, arguing they are often well-placed to buy and scale smaller companies.mlex+1

What Comes Next

The public consultation on the draft guidelines closed in June, and final adoption is expected in the fourth quarter of 2026. Whether the Commission heeds calls from companies like Siemens to loosen restrictions on gatekeeper acquisitions will be a key test of how far Brussels is willing to go. As Reuters reported when the draft was published, the threshold for proving deal benefits is likely to remain high, with regulators expected to continue scrutinizing potential price hikes and competitive harm.Reuters+2