POSITION | COMPETITION POLICY | EUROPE
European Merger Control Necessary adjustments from the perspective of German industry
22. August 2024 Introduction Effective merger control by the European Commission is a key pillar of European competition law and therefore one of the core elements of the European Single Market. The legal basis for its implementation can be found in particular in the EC Merger Regulation (EC) No. 139/2004 (ECMR), which has remained unchanged since 2004. The Horizontal and Non-Horizontal Merger Guidelines have also not been updated since 2004 or 2008. Far-reaching economic changes in recent years, such as the digitalisation of the economy, the effects of globalisation and new geopolitical developments, have not yet been reflected in the rules. Therefore, 20 years after the publication of the ECMR and at the beginning of a new EU legislative period, it seems to be a good time to evaluate and update the existing EU merger control law. This applies all the more in light of the current political demands for greater promotion of the competitiveness of the European economy ("New European Competitiveness Deal"), the announcements by Commission President von der Leyen in her Political Guidelines 2024-2029 to better align competition policy and merger control with common European goals and global markets, and the European institutions' commitment to better regulation and a reduction in bureaucracy. In the view of the Federation of German Industries (BDI), the future of competition and merger control law must be characterised by a more progressive competition policy that gives European companies effective opportunities in global markets. It is important to find a balanced approach that promotes the global competitiveness and growth of European companies while ensuring fair competition in the internal market. In this sense, competition policy and industrial policy do not contradict each other, but complement each other. Particularly with regard to the competitiveness of European companies, the European Commission must always carry out a forward-looking market assessment when taking merger decisions and, in addition to competition in the Internal Market, also take greater account of the global competitive situation, dynamic market developments and the potential market entry of other companies as well as possible efficiency gains. In addition to the traditional assessment criteria, the long-term positive effects of a merger on innovation, quality, sustainability and investments should also play a decisive role in the Commission's assessment.
Federation of German Industries | Law, Competition and Consumer Policy | www.bdi.eu