EU Plans to Update Merger Rules to Consider Long-Term Effects

SNN – The European Union is preparing to revise its merger regulations to focus not only on short-term price impacts but also on broader long-term factors, according to European Commission competition chief Teresa Ribera.

In an interview published Tuesday by Spanish newspaper Expansion, Ribera said the current merger guidelines — which have been in place for about two decades — need to be updated to reflect major changes in the global economy.

At present, EU authorities typically evaluate the effect of corporate mergers on consumer prices over a three-year period following a deal. Ribera suggested this timeframe may be extended, noting that in rapidly evolving and innovative sectors the benefits of mergers may only become visible after a longer period.

However, she emphasized that the fundamental goal of EU competition rules will remain unchanged: protecting consumers and ensuring fair market competition. Ribera also noted that more than 95% of merger deals in the EU are approved without major issues under the current framework.

The updated guidelines are expected to assess additional factors beyond price, including innovation, sustainability, and economic resilience. Companies seeking approval for mergers may also be required to provide stronger evidence to regulators about the broader benefits of their deals.

The push for updated rules comes as large companies in sectors such as telecommunications and banking have been urging Brussels to allow greater consolidation so they can better compete with major firms in the United States and China.

Ribera said the European Commission will hold an initial policy discussion next week, followed by consultations with EU member states, national regulators, and the public. Those consultations are expected to conclude later this spring.