Innovators and startups will get assurances that EU merger control won’t hold up their deals under revised guidance to emerge next spring, Teresa Ribera said. Bigger companies wanting to grow through M&A can’t expect a “blank check” to consolidate, but smaller startups may benefit from an “innovation shield,” the bloc’s competition chief told MLex. The EU’s new framework could kick in next year, even ahead of the guidelines’ formal adoption.
Innovators and startups may see their deals shielded from EU merger control uncertainty under revised guidance, according to the EU’s competition boss Teresa Ribera. But she warned bigger companies wanting to grow through M&A activity that the policy overhaul — to be published in draft as soon as spring 2026 — won’t hand them a “blank check” to consolidate.
In an interview with MLex this week, the Spanish politician also said there were challenges in enforcing rules on foreign subsidies, breaching a cultural divide with countries unaccustomed to such scrutiny.
But she stressed there was an "obligation" to ensure a level-playing field for European companies, especially in “critical strategic sectors” like wind energy and chemicals.
Ribera has weathered a media storm in recent weeks, announcing major antitrust decisions against Google and Microsoft but also drawing dissent from other parts of the European Commission.
She downplayed those tensions, saying discussions remained respectful and well-intentioned, and stressed how protecting consumers sits at the heart of her enforcement agenda.
— Merger guidelines —
In an influential report last year, former Italian premier Mario Draghi said that companies seeking EU approval for their mergers should be able to justify their deals via an “innovation defense.” This could see a problematic transaction overcoming regulatory concerns if the companies argue the deal makes a significant contribution to future innovation.
An “innovation shield” in the forthcoming guidelines could work differently, giving start-ups clarity about the kinds of impact on innovation that won't usually raise EU competition concerns in advance of any deal.
Ribera said early-stage innovation needed to be protected — so it could take place in a “quicker and cheaper manner” — and this could potentially happen through a “shield” set out in the guidelines.
The draft text is expected to outline “criteria” that explain when tie-ups involving small, dynamic players are not liable to harm competition, giving them more certainty and cutting red tape. The goal is to facilitate efforts for them to scale up.
Start-up entrepreneurs have publicly called for the guidelines to safeguard a clear pathway for founders to exit their business through a sale.
Last week, a coalition of 19 associations representing start-ups and tech founders said there was uncertainty around when deals involving smaller companies faced scrutiny, and they wanted regulators to place greater weight on the benefits of innovation (here).
— Spring 2026 —
Earlier this week, European Commission President Ursula von der Leyen said the new guidelines — aimed at updating merger reviews in light of shifts in the global economy — should be brought forward.
The final guidelines were scheduled to be adopted in the last quarter of 2027, with officials saying the draft version would come a year before.
Ribera confirmed the draft may now appear early next year and that some of the new criteria would be applied "on an interim basis" once they are known to the public.
Corporate leaders in the airline and telecom industries have long pushed the commission to allow consolidation, saying the continent has too many small operators to build scale and drive investment.
Ribera said she understood the consolidation drive from some sectors, and their arguments may have "points of truth… but that doesn't mean that they are entirely right, or that we can come with a blank check."
The commissioner said some companies seek consolidation within their home countries as a pathway to scale and competition on an international scale, but they wouldn’t get carte blanche to merge.
— Foreign subsidies —
Ribera’s staff are also learning to apply a new power to vet transactions that might be influenced by state support from non-EU governments. The Foreign Subsidies Regulation gives officials the right to intervene if they believe foreign money risks distorting the European market.
Currently, the EU's executive arm is scrutinizing Chinese wind turbine producers as well as Nuctech, a Chinese manufacturer of security scanners. It is also reviewing a bid by Abu Dhabi National Oil Company for German chemical company Covestro. The review has been paused as officials seek information on the deal, and the company has complained about red tape.
Ribera said there were challenges in applying the law, given the different cultures and subsidy practices evident in other jurisdictions.
"It is a new tool and we are learning," she said, noting that a formal assessment of the law as well as guidelines were under preparation.
"It is not always easy to have this cultural discussion on how to ensure that there are no undue subsidies. And it is more difficult to get adequate information or documents and data on a server [outside the EU]," she said.
She rejected criticism that the law might stand in the way of investment flows into Europe.
"Do we try to be quicker? Yes. Is there any type of intention to make [investment] absolutely impossible? No. We are willing to get those investments. It is very important, but we feel committed to the people that are already playing in the market and that try to ensure fair play."
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