ERT calls for modernised EU Merger Guidelines to unlock efficiencies, innovation and competitiveness

Brussels, 17 February 2026: The European Round Table for Industry (ERT) today publishes an expert contribution calling for targeted revisions to the EU’s Merger Guidelines to ensure that efficiency gains are taken on board – including innovation, sustainability and resilience benefits – which are vital to Europe’s productivity, growth and competitiveness.

The paper responds to the European Commission’s (DG COMP) ongoing review of the Merger Guidelines and highlights how the current approach places disproportionate evidentiary standard for efficiencies on companies proposing to merge. ERT argues that the current approach is neither required by the EU Merger Regulation nor supported by EU Court case law, and that it risks hindering transactions to fully unfold their potential to enhance Europe’s long term competitiveness.

Context: A growing gap between law, economics and enforcement practice
Under today’s guidelines, the standard to prove merger efficiencies relies on a strict interpretation of merger specificity, verifiability and directly beneficial to consumers in the same market where potential harm is identified. In practice, this often translates into rigid, short term tests that undervalue dynamic efficiencies arising from investment, innovation, digitalisation and the green transition.

At the same time, the paper notes, the Commission increasingly uses forward looking and probabilistic evidence to establish theories of harm – yet does not apply the same standard when assessing efficiencies. This “one sided visibility” undermines Europe’s ability to scale industrial capabilities in strategic sectors.

Key Recommendations
ERT proposes three calibrated reforms, fully consistent with EU law:

1. Rebalance the Standard of Proof
Efficiencies should be assessed under the same “more likely than not” standard applied to competitive harm, without requiring “reasonable certainty” or limiting recognition to short term effects.

2. Modernise the Merger Specificity Test
Replace the unrealistic obligation to rule out all “less anticompetitive alternatives” with a test based on the most plausible counterfactual scenario used for harm assessment.

3. Broaden the Treatment of Consumer Benefits
Allow efficiencies arising across related or upstream/downstream markets — including those supporting EU policy goals such as innovation, sustainability and security of supply — to be factored into the overall appraisal.

The full ERT Expert Paper is available to download here.

ENDS

Note to Editors:

A full list of the CEOs & Chairs in the Membership of ERT is accessible here.