Competition wish-list for the new Commission suggests better alignment with German Federal Government

Recent months have sparked extensive debates on the future direction of EU competition law under the leadership of the new European Commission (Commission) and its Executive Vice-President for a Clean, Just, and Competitive Transition, Teresa Ribera (watch our video on this topic). On 17 December 2024, the German Federal Government unveiled its proposals for modernizing EU competition law and policy.

While not all proposals are expected to be picked up at the EU level, early statements by EVP Ribera indicate that the Commission and the German Federal Government appear to be aligned in relation to more effective enforcement in merger control and antitrust. If tensions between the Commission and the German Federal Government and/or the FCO do not re-emerge as in the past (see EU merger control reform: A look ahead to 2020), stakeholders in the EU can expect gradual changes in many aspects of competition policy, including potential re-adjustments of merger control thresholds at both EU and national level, more effective enforcement under the EUMR and Regulation 1/2003, and improved cooperation within the European Competition Network.

How might the proposals shape the evolution of competition policy in the EU?

Updating the merger control thresholds

The proposals include:

• Increasing the EUMR turnover thresholds to free up resources of the Directorate-General for Competition;
• New ways of capturing “killer acquisitions” and related phenomena, e.g., by introducing a transaction value threshold; and
• Reviewing the merger control guidelines to take greater account of the effects on competitiveness and economic security.

The first two proposals fit well with recent proposals made by the President of the Federal Cartel Office (FCO), Andreas Mundt, to further modernize German merger control laws. Mundt, staunch advocate of stringent and consistent merger control enforcement to preserve competition and diversity (see A joint statement on mergers:,Insights from UK; Germany and Australia), openly discussed (i) raising the German turnover thresholds to free up resources, but (ii) also lowering the existing German transaction value threshold (EUR 400m) to better capture phenomena as “killer acquisitions”. The increase of filing thresholds under the EUMR in combination with a decrease of the German transaction value threshold would necessarily further strengthen the FCO’s role in the matrix of European merger control. The last proposal picks up on already long on-going debates, popular especially in Germany and France, to create “European Champions” by means of updating merger control, and now heavily influenced by experiences made in the wake of the Covid-19 pandemic and Russia’s war against Ukraine.

The comeback of the New Competition Tool proposal

Again, on the basis of already existing instruments in German competition law, the German Federal Government re-introduces its proposal to the EU for a New Competition Tool (NCT) that would allow the Commission to impose remedial measures in sectors with severe structural competition problems. The Commission already inquired on this proposal in 2020 (see Consultation on New Competition Tool), and ultimately dropped it in favor of the Digital Markets Act (DMA). While it remains to be seen, the NCT is an unlikely comeback kid given its history. The German experience might also be an indication that the proposal to restart the discussion might not be that popular at the EU level, as the German NCT has not been used once since its introduction in 2023.

Faster and more effective antitrust and competition enforcement

The German Federal Government’s proposals for better enforcement in merger control, antitrust and DMA proceedings largely echo EVP Ribera’s main goals for her tenure at the Commission. However, a few proposals stand out:

• The introduction of an annual monitoring fee for gatekeepers under the DMA could contribute to an effective DMA enforcement given the Commission’s limited resources. However, in light of the current discussion around the EU’s alleged overregulation in the digital economy, it remains to be seen whether this proposal will be picked up by the Commission.
• Lower requirements for ordering interim measures, comparable to those at national level (such as in Germany), to simplify and speed up procedures when modernizing Regulation 1/2003. (see What to expect for a revised procedural antitrust framework under a new European Commission?)
• Enforcing Art. 102 TFEU (abuse of dominance) in purely administrative proceedings, without the threat of fines and other sanctions, to allow for a more robust and speedy protection of competition. If this proposal is picked up, it would need to be weighed against the potential loss of deterrent effect on companies who will know they might get away without fines.

Call for more guidance on horizontal cooperation for innovation and sustainability

Despite the recently revised Horizontal Guidelines, the German Federal Government calls for another revision of the Commission’s guidance and a review of the Commission’s enforcement practice, especially vis-à-vis innovation challenges in the data and AI space as well as sustainability. Similar guidance is being discussed in Germany in the ongoing deliberations regarding a 12^th amendment of the German Act against Restraints of Competition, which appear to have stalled given the upcoming snap election in Germany in February 2025.

It's early days, but it appears that 2025 may see a more harmonious relationship between the German Federal Government and Commission, leading to more effective enforcement. We will be tracking developments closely, and bringing you further updates.