AFS' Position on the Review of the EU Merger Guidelines

The European Commission’s review of the EU Merger Guidelines is an important opportunity to ensure competition policy supports Europe’s innovation ambitions.

Allied For Startups welcomes the stronger recognition of dynamic competition, innovation-driven markets, and Europe’s scale-up challenge. Acquisitions play a vital role in helping startups access capital, talent, global markets, and the investment needed to grow. Predictable exit opportunities are essential for founders, investors, and a thriving venture ecosystem.

At the same time, greater flexibility in merger enforcement should not come at the expense of legal certainty. Broad and speculative theories of harm, increased procedural burdens, and uncertainty around startup acquisitions could discourage investment and weaken Europe’s competitiveness.

Our key recommendations:

• Ensure predictable and proportionate merger enforcement.
• Provide clear guidance on innovation-driven transactions.
• Make the proposed “innovation shield” practical, transparent, and accessible.
• Balance effective competition enforcement with the certainty startups and investors need to innovate and scale.

Europe needs a merger framework that protects competition while enabling innovation. The final Guidelines should help make Europe the best place to build, grow, and scale the next generation of innovative companies.