Copenhagen, October 29, 2025 – European Union (EU) merger rules do not prevent telecom operators from scaling through acquisitions, a senior European Commission antitrust official stated on Wednesday, addressing concerns from the European telecom industry over regulatory hurdles.

More than 20 of Europe’s largest telecom providers recently urged Commission President Ursula von der Leyen to relax merger rules to encourage investment in digital infrastructure and strengthen competitiveness against U.S. and Asian rivals. However, the Commission reaffirmed that its primary concern remains market power, not the size or scale of a company.

EU Antitrust Perspective on Telecom Mergers

Guillaume Loriot, Deputy Director-General for Mergers at the European Commission, said: “Merger control is not about scale as such. There is no problem with scale. The issue is always market power.” He emphasized that mergers among established telecom players are closely scrutinized only when they could create excessive dominance in specific markets, potentially leading to higher prices for consumers.

The EU’s strict stance on telecom mergers—particularly four-to-three consolidations—has long frustrated industry leaders, who argue that scale is necessary to compete internationally and to finance large-scale digital infrastructure projects. Loriot clarified that merger rules are more relevant when acquiring startups or innovative players in nascent markets, where competition could be stifled.

Focus on Startups and Innovation

The Commission is particularly attentive to acquisitions involving emerging startups or companies in early-stage markets, as these deals can significantly affect market dynamics and consumer choice. “For the vast majority of cases, scale is not an issue, but in nascent markets, vigilance is required,” Loriot added.

This regulatory approach reflects the EU’s dual goal: supporting investment and innovation while maintaining a competitive environment that protects consumers from monopolistic practices. Telecom companies aiming to expand through acquisitions can still do so, provided they do not gain excessive market power in critical areas.

Industry Implications

Europe’s telecom sector continues to face intense competition from global technology and telecom giants in the U.S. and Asia. Maintaining flexibility for strategic mergers is crucial for funding 5G networks, fiber-optic rollouts, and other digital infrastructure initiatives. The Commission’s guidance clarifies that mergers can proceed if they enhance competitiveness without compromising market fairness.