EU Eases Merger Review Rules, Encouraging Companies to Scale Up Against US and China
nashnova research
The EU's competition authority is signaling a clear shift toward approving mergers that boost investment, innovation, or supply security — the strongest sign yet that Brussels is moving from blocking scale to backing it in the race against the US and China.
Why is the EU suddenly encouraging companies to "go big"?
Anthony Whelan, new head of the EU's competition directorate, said Brussels will take a more favorable view of mergers that strengthen investment, innovation, or supply security.
This means → the old yardstick — "does this deal reduce competition?" — now shares space with a new one: "does this deal help Europe scale up?"
The backdrop: former ECB president Mario Draghi warned that Europe was falling behind. The Commission earlier this year wrote merger liberalization into its roadmap for delivering the "Draghi agenda."
Could deals shelved in the past get a second chance?
Whelan acknowledged that mergers previously abandoned because they were unlikely to clear EU review may now be revived.
He said he did not know how many deals were "being pulled out of filing cabinets," but stressed Brussels is "consciously sending a clear signal."
In plain terms = companies that once assumed "Brussels will block it" now have an open invitation — make the case that your merger is good for competition, and regulators will listen.
What new factors will the review consider?
The Commission will weigh long-term market dynamics, not just current market share.
Three dimensions stand out: whether a merger helps a firm access geopolitically constrained inputs; whether it pools resources for capital-intensive innovation; and whether it promotes infrastructure or network investment.
This means → the review logic expands from "will this deal raise prices?" to "will this deal keep Europe in the game on critical fronts?"
Why was AI singled out?
Whelan noted that the AI sector shows some characteristics of oligopoly, and the Commission is watching concentration risk closely.
The focus is on ensuring competition in developing and commercializing AI models is not distorted by conduct in adjacent markets.
In plain terms = Brussels isn't worried about AI firms being large — it's worried that a few giants could use control over compute, data, and other "surrounding resources" to lock new entrants out.
Will Brussels go easy on American companies?
Whelan denied that geopolitical pressure has led the EU to pull punches on US firms, saying there is no "filing cabinet full of suppressed cases."
He called EU-US divergence on digital rules "disappointing" but stressed that the predictability and neutrality of EU enforcement is "an extremely valuable asset."
This reflects the core message Brussels wants to send: loosening merger rules ≠ favoring European firms — the rules apply equally to everyone.
Can this policy shift actually deliver?
Whelan emphasized "cases come in, we treat them equally" — the shift does not mean European firms get special treatment.
The critical variable: whether companies can effectively argue, case by case, that a merger brings pro-competitive benefits.
In plain terms = the door is open, but no one walks through automatically. Only firms that present solid evidence that "this merger is good for the market" will truly benefit.
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