The European Commission has published draft revisions to its EU Merger Guidelines, signalling a significant shift in how mergers could be assessed in Europe.
The draft guidelines place greater emphasis on the positive effects that transactions can deliver, including investment, innovation, sustainability and resilience, recognising these benefits as an integral part of the overall competitive assessment. They also propose a more balanced framework for weighing transaction benefits alongside potential competition concerns.
A more dynamic approach to merger assessment
The proposed guidelines reflect the increasingly complex economic questions arising in modern merger reviews, particularly in dynamic markets where competition is driven by investment, innovation and long-term growth.
Frontier Economics welcomes the Commission's recognition of these wider economic effects and the greater prominence given to transaction benefits within the merger assessment framework. The draft guidelines also introduce new concepts, including "theories of benefit", and encourage earlier engagement between merging parties and the Commission on efficiencies.
Where the draft guidelines could go further
Drawing on our experience advising clients on complex merger proceedings before the European Commission, Frontier has submitted a response to the Commission's public consultation, highlighting several areas where the draft guidelines could be strengthened.
In particular:
- clearer guidance on assessing resilience-related benefits in merger cases;
- a broader approach to evaluating sustainability and resilience benefits for consumers and society;
- additional guidance on the economic methods available to quantify both transaction benefits and potential competitive harm; and
- greater clarity on the practical application of the proposed theories of harm in dynamic markets.
These recommendations are intended to help create a framework that is both economically robust and practical to apply, providing greater predictability for businesses while supporting effective merger control.
Read our response
Frontier's submission forms part of the European Commission's public consultation on the draft EU Merger Guidelines and draws on the firm's extensive experience advising clients on high-profile merger investigations across Europe.
Click here to read our full response to the consultation.
For more information, please contact hello@frontier-economics.com or call +44 (0) 207 031 7000