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Published by Global Banking & Finance Review®

Posted on April 22, 2026

2 min read

EU may let startups claim innovation benefits in M&A if Big Tech not involved - Finance news and analysis from Global Banking & Finance Review

EU Plans Innovation Shield for Startup M&A, Excludes Big Tech Acquisitions

EU Antitrust Overhaul and the Innovation Shield Proposal

By Foo Yun Chee

Background and Motivation for the Overhaul

BRUSSELS, April 22 (Reuters) – Startups claiming innovation benefits for their deals will likely secure speedy EU antitrust approval, but not if Big Tech is involved, a draft revamp of merger rules due to be announced in the coming weeks reveals.

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.

Key Features of the Innovation Shield

Scope and Application

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 reveals.

Exclusions for Big Tech and Gatekeepers

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.

Additional Arguments and Regulatory Outsee

Broader Considerations for Merger Approval

The European Commission document also details innovation, sustainability, resilience, investment and employment arguments which companies can raise, confirming a February Reuters report.

Expected Impact and Next Steps

Assessment and Feedback Process

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.   

(Reporting by Foo Yun Chee; Editing by Alexander Smith)



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