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Brussels outlines more adaptable EU competition policy

23 November 2021, 18:35 CET
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Brussels outlines more adaptable EU competition policy

Margrethe Vestager - Photo © European Union 2021

(BRUSSELS) - The EU Commission adopted a Communication Thursday on a competition policy fit for new challenges, framing the key role of competition policy for Europe's path towards a 'green' recovery.

The Communication highlights how competition policy can adapt to new market circumstances, policy priorities and customer needs.

The EU executive has also today adopted the sixth amendment of the State aid Temporary Framework to enable Member States to provide targeted support to companies during the coronavirus crisis.

The Commission says it is currently pursuing a review of competition policy tools to make sure all competition instruments (merger, antitrust and State aid control) remain fit for purpose, and complement its existing toolbox.

"Strong competition enforcement is fundamental for businesses and consumers to reap the full benefits of our Single Market," said EC vice-president Margrethe Vestager, in charge of competition policy: "It gives businesses of all sizes a fair chance to compete. It makes sure businesses are challenged to deliver the best, most innovative solutions for consumers. And it gives customers a choice of products and services, contributing to reliable and diverse supply chains."

She went on to highlight the importance at this time of effective competition policy "to give the European economy the agility and drive to overcome the challenges it faces. At the same time, competition rules have an in-built flexibility to adapt."

New challenges faced by the EU include: to climb the steep path to recovery following the coronavirus crisis, while enabling European industries to strengthen their resilience and to lead the twin green and digital transitions. An effective and well-calibrated competition policy can contribute the success of this agenda, which will require extraordinary public and private investments, innovation and a well-functioning Single Market.

Examples mentioned in the Communication include:

-To contribute to Europe's response to the coronavirus crisis and support the economic recovery, the Commission has adopted a sixth amendment of the State aid Temporary with a limited prolongation of existing measures until end-June 2022. It sets the path for a progressive phase-out of crisis measures, while avoiding cliff-edge effects, and accompanies the recovery with new tools to kick-start and crowd-in private investment in the recovery phase (see further information here).

-To contribute to the green transition, the upcoming Climate, Environmental Protection and Energy Aid Guidelines aim at supporting industry's efforts towards decarbonisation, circularity and biodiversity, as well as clean or zero-emission mobility and the energy efficiency of buildings.

-To contribute to the digital transition, the upcoming Broadband State aid Guidelines aim to foster digital infrastructure development by facilitating the deployment and take-up of broadband networks which respond to fast-evolving user needs.

-To contribute to resilience by means of open and competitive markets, European merger control will continue to allow companies to achieve greater scale, while making sure that markets remain competitive and supply chains diversified. Furthermore, antitrust policy allows businesses in the EU to join forces to advance their research and development efforts, to design, produce and commercialise products, or to jointly purchase products or services they may need for their operations.

Finally, in view of the exceptional situation as regards semiconductors, their relevance and the dependency on supply from a limited number of companies in a challenging geopolitical context, the Commission says it may envisage approving support to fill potential funding gaps for the establishment in particular of European first-of-a-kind facilities in the semiconductor ecosystem. Such aid based on Article 107(3) TFEU would be subject to strong competition safeguards as well as ensuring that benefits are shared widely and without discrimination across the European economy.

Communication on a competition policy fit for new challenges

Temporary framework prolongation

Policy timelines: Antitrust and Mergers; State aid


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