## EU Antitrust Chief Rejects Calls for Merger Rule Shakeup
Margrethe Vestager, the European Union's antitrust chief, has rejected calls for a revamp of European merger rules. She believes that fostering competition is the best way to create companies strong enough to compete with rivals from the United States and China.
Vestager's comments came in response to a report by former Italian Prime Minister Enrico Letta, who urged a reboot of the EU single market to catch up with global competitors in green and digital technologies. Former ECB president Mario Draghi is also expected to echo similar sentiments in a report due in June.
Vestager argues that the current merger regulation serves businesses, consumers, and the European economy well. It protects competition in the single market, keeping it fair and contestable. Effective merger control is crucial for European businesses to rise and become champions in their fields.
Telecom companies have been pushing for looser merger rules to consolidate and boost their market power. However, regulators are wary of deals that reduce the number of players from four to three, fearing price increases.
Vestager emphasizes that merger control does not hinder pro-competitive consolidation. She cites examples like the creation of Stellantis, the global waste and water management group Veolia-Suez, and the world's largest wind turbine maker Siemens-Gamesa, all approved under her watch.
Vestager believes that abandoning competition within the EU to create monopolies that can compete externally is not the solution. Local champions become competitive abroad when they are pushed to be efficient, lean, and innovative due to domestic competition. Competitiveness within the single market translates into external competitiveness.