Headlines
EU rules not a barrier to telcos scaling up, senior EU official says
Published by Global Banking & Finance Review®
Posted on October 29, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 29, 2025
2 min readLast updated: January 21, 2026
EU merger rules allow telecom expansion through acquisitions, focusing on market power rather than scale, says EU official.
By Foo Yun Chee
COPENHAGEN (Reuters) -EU merger rules do not prevent telecoms operators from scaling up through acquisitions, a senior European Commission antitrust official said on Wednesday, rejecting criticism from the European industry about the tough approach by regulators.
More than 20 of Europe's biggest telecoms providers on Tuesday called on Commission President Ursula von der Leyen to ease merger rules to boost investment in digital infrastructure and help them compete with U.S. and Asian rivals.
"I need to remind everyone from time to time, that merger control is not about scale as such. There is no problem with scale as such. The issue is always market power," said Deputy Director-General for mergers Guillaume Loriot.
Europe's telecoms sector has long chafed at EU regulators' tough line against four-to-three mergers, which companies say are needed to increase scale, over price hike concerns.
"Merger control is not a hurdle to scaling up provided that you don't have excessive market power in those markets where it may happen," said Loriot.
EU regulators see the scale up argument as more relevant in deals involving startups not established players, he said.
"We are looking very closely at the issue of the acquisitions of innovative players and startups. For the vast majority it's not an issue but there are those deals in nascent markets where we need to be vigilant," he added.
(Reporting by Foo Yun Chee; Editing by Alexander Smith)
Market power refers to the ability of a company or group to manipulate the price or supply of a product or service in the market. Companies with significant market power can influence prices and affect competition.
Merger rules are regulations set by authorities to govern the process of merging two or more companies. These rules aim to prevent anti-competitive practices and ensure fair competition in the market.
Digital infrastructure refers to the foundational technologies and systems that support the delivery of digital services. This includes networks, data centers, and cloud computing resources that enable online communication and transactions.
An acquisition is a corporate action where one company purchases most or all of another company's shares to gain control. This can enhance market presence, expand product offerings, or achieve synergies.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU, including competition policy.
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