The European Union will update its merger rules to look beyond short-term price effects but without giving companies a blank cheque for consolidation, according to the European Commission’s competition chief Teresa Ribera.
Large players in sectors including telecoms and banking have long been lobbying Brussels for more flexibility in regulations to allow for greater consolidation and competition with rivals in the U.S. and China.
“We’re updating the guidelines that have been applied over the last 20 years; the world has changed very significantly in those two decades,” Ribera told Spanish newspaper Expansion in an interview published on Tuesday.
Currently, the EU assesses the impact of mergers on consumer prices over three years after a deal. Ribera said the time frame could be extended because in more disruptive and innovative sectors, the benefits “aren’t really seen until some time has passed”.
However, Ribera said the spirit of the current rules – protecting consumers and the broader market – must be preserved, noting that “more than 95% of mergers have taken place without any problem”.
Ribera said future guidelines would also weigh factors other than price, including sustainability, innovation or resilience, and companies would have to play a bigger role in providing evidence to regulators.
On timing, she said the Commission would hold an orientation debate next week before consultations with member states, national regulators and the public that are expected to wrap up by this spring.
(Reporting by David Latona)
