- The consultation seeks feedback on incorporating factors like innovation and digitalisation into merger assessments.
- National regulators express caution, warning that relaxed rules could harm competition and service quality.
What happened: EU opens public consultation on merger policy reform
The European Commission launched a public consultation aimed at overhauling its merger control policies. This move comes in response to mounting pressure from telecom operators and other industries advocating for a regulatory environment that better supports investment and innovation.
The consultation invites feedback on seven key areas: competitiveness and resilience, market power, innovation, decarbonisation, digitalisation, efficiencies, defence, and labour considerations. Stakeholders have until September 3, 2025, to submit their responses.
Despite this initiative, significant changes to the existing merger rules are not anticipated in the near term, given their endorsement by the EU’s top court and resistance from several national regulators. Recently, competition authorities from Austria, Belgium, the Czech … , and Portugal cautioned against loosening merger controls, arguing that reduced competition could negatively impact service quality and innovation.
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Why it’s important
The outcome of this consultation could have far-reaching implications for the European telecom industry. Operators contend that current merger regulations hinder their ability to achieve the scale necessary for substantial investments in infrastructure, such as 5G and fibre networks. A more accommodating merger policy could facilitate industry consolidation, potentially leading to enhanced services and accelerated technological deployment.
However, consumer advocates and some regulators warn that easing merger rules might lead to decreased competition, higher prices, and diminished service quality. The Commission’s challenge lies in balancing the need for industry consolidation to foster investment and innovation with the imperative to maintain competitive markets that protect consumer interests.
