Five EU Nations Push Back Against Loosening Corporate Merger Regulations

Finland, Ireland, and three other European Union countries are opposing efforts to weaken merger oversight rules. The nations argue that existing regulations already permit beneficial corporate consolidations when supported by economic evidence.

Five European Union member states are standing firm against proposals to weaken corporate merger oversight, according to documents obtained by news outlets.

Finland, Ireland, the Czech Republic, Estonia, and Latvia have collectively voiced opposition to relaxing current merger regulations, despite pressure from some businesses seeking less stringent review processes for their consolidation deals.

These companies argue they need more freedom to merge in order to compete effectively against international competitors from outside the EU.

The European Commission, responsible for enforcing competition policy across the bloc, is currently updating merger regulations that have been in place since 2004. Officials plan to release draft proposals for public comment in April, with sources indicating the goal is to promote cross-border European mergers.

However, the five dissenting nations argue in their joint statement that loosening current rules is unnecessary for creating strong European companies, since existing regulations already permit such consolidations when economic data justifies them.

“Size in itself should not be the primary objective” of corporate mergers, the countries stated in their document, which is scheduled for discussion during an EU ministerial meeting on February 26. They advocated for “undertakings that succeed through efficiency, innovation and fair competition instead of exemptions or special treatment.”

The nations specifically challenged arguments from European telecommunications companies claiming that larger corporate entities would lead to increased investment spending. Instead, they sided with regulatory officials who have found minimal evidence supporting such claims.

“The empirical link between higher concentration and stronger investment incentives in telecom markets is at best inconclusive and should be analysed on case-by-case basis,” the countries wrote.

They also dismissed assertions that bigger telecommunications operators would create more secure supply networks, warning this approach could actually weaken Europe by creating excessive dependence on too few suppliers.

“If strengthening resilience and secure supply chains is considered to require additional regulatory measures, these should be pursued through sectoral or industrial policy instruments rather than through changes to competition legislation,” the nations concluded.