European Commission revises antitrust rules to favor sustainability and resilience

The European Commission has revised its antitrust guidelines to allow companies with market dominance to justify certain behaviors if they contribute to specific policy goals. Under the new rules, firms with a market share exceeding 40% may be able to rebut claims of abusing their position if their practices promote sustainability, public health, product safety, or increased supply chain resilience.

Specifically, the Commission noted that actions which might otherwise be seen as anti-competitive could be acceptable if they lead to reduced raw material use, lower pollution, increased use of recyclable products, or help the bloc withstand supply shocks. EU competition chief Teresa Ribera stated the changes aim to provide “clarity and predictability on the limits of the law for companies operating in Europe.”

The move follows recent overhauls of merger rules intended to help European firms scale up to compete with major US and Chinese corporations. However, the guidelines have faced criticism from academics and economists. In a joint letter to Commission President Ursula von der Leyen and Teresa Ribera, a group of 28 experts warned that the new approach could be exploited to justify unfair dominance by failing to distinguish between anti-competitive conduct and legitimate business efficiency.