The overhaul, the first in more than two decades, came after telecoms operators led calls for looser merger rules to allow them to scale up to better compete with U.S. and Chinese rivals.
European Union antitrust regulators have responded with a proposed ‘innovation shield’ whereby they will not intervene in deals involving startups or research and development projects likely to boost competition, the draft seen by Reuters displays.
The shield however does not cover deals where the acquirer is the largest player in the relevant market or where the company is labelled a gatekeeper under the Digital Markets Act which seeks to rein in the power of Big Tech.
The European Commission document also details innovation, sustainability, resilience, investment and employment arguments which companies can raise, confirming a February Reuters report.
Commission officials and experts do not expect any radical alters in their assessment of merger deals as the rules have worked well and have proven themselves during court challenges.
The alters will be open to feedback from companies and other participants before they are adopted.
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