BARCELONA — The revised merger guidelines from the European Union are unlikely to facilitate a free pass for industries across Europe seeking consolidation, according to Teresa Ribera, the EU’s competition chief. In a recent interview with POLITICO, she emphasized the need for cautious application of these rules, which are set to be published on May 2, following departmental consultations on the 100-page draft that commenced this week.
Merger operations vs. market integration
“We cannot use merger operations as a substitute for market integration,” Ribera stated, underscoring the importance of genuine market consolidation over mere size. As the executive vice president and a key figure in enforcing antitrust policy across the 27-nation bloc, Ribera’s perspective diverges from that of Commission President Ursula von der Leyen, who has advocated for the creation of European business “champions” capable of competing with leading firms from China and the United States.
Ribera highlighted that the restructuring of critical sectors such as telecoms is hindered not by the existing merger regulations, but rather by the fragmentation of national markets within Europe. She asserted, “It needs to be proven that there are benefits we will be enjoying in the time to come. And not just: I want to be big.”
Call for restraint in national interventions
Ribera also warned member states against exploiting the new resilience and security exceptions within the guidelines to favor domestic companies. She articulated a need for “a very self-restrained understanding of what this could mean” for national governments and competition authorities.
Her comments came in the wake of Italy’s actions regarding UniCredit’s bid for Banco BPM and the conditions imposed by Spain on BBVA’s acquisition of Sabadell, both of which have led to legal proceedings by the Commission for violating EU regulations concerning the freedom of establishment and capital movement.
For arguments surrounding resilience, sustainability, and innovation to be valid under the new guidelines, Ribera insisted on the necessity of upfront criteria that must be demonstrably fulfilled. Furthermore, she committed to facilitating more structured and timely interactions between companies and regulatory officials.
The remarks from Ribera were made during the inaugural Global Progressive Mobilization summit in Barcelona, which gathered left-wing parties and movements from over 100 nations. The summit is set to feature addresses from notable leaders, including Spanish Prime Minister Pedro Sánchez, Brazilian President Luiz Inácio Lula da Silva, and Mexican President Claudia Sheinbaum in its plenary session on Saturday.