The European Commission is revising the Merger Guidelines (that is, acquisitions and mergers), in order to reflect two decades of decision-making practice and case law and to adapt the framework to modern economic and geopolitical challenges.
The Merger Guidelines explain the way in which the European Commission assesses concentrations and identify the criteria used to determine whether a concentration is likely to significantly impede effective competition. Their purpose is to protect competition and ensure fair and contestable markets for the benefit of businesses and consumers.
The Guidelines also provide businesses with greater transparency and legal certainty when planning mergers and acquisitions.
The European Commission's initiative to modernize the Merger Guidelines and to take into account evolving economic conditions and market developments is welcome.
The Hellenic Competition Commission, together with the competition authorities of Austria, Belgium, the Czech Republic, Ireland, the Netherlands and Portugal, published a joint statement regarding the draft EU Merger Guidelines.
The joint statement sends a clear message that:
- European competitiveness and sustainable economic growth are promoted by effective competition, which strengthens innovation and long-term prosperity and remains the primary objective of merger control.
- The draft Guidelines recognize that certain public interest parameters may be relevant when assessing the effects of concentrations, to the extent that they relate to the competitive process. In particular, factors such as resilience, sustainability or the integration of the single market may constitute relevant parameters of competition, within the framework of a reasoned and evidence-based assessment.
- The internal market benefits from the achievement of economies of scale, when these arise through open and competitive processes and through effective reallocation of assets.
- Small and medium-sized enterprises that supply or are supplied by larger businesses are vital to Europe's economic strength and depend on open and competitive markets.