Competition Policy as a driver of European competitiveness

The European Economic and Social Committee’s opinion on the European Commission’s 2025 Competition Policy Report comes at a pivotal moment for Europe. As the Union seeks to strengthen its competitiveness, accelerate the green and digital transitions, and respond to growing geopolitical challenges, competition policy must remain a cornerstone of the Single Market while adapting to new economic realities.

The EESC welcomes the Commission’s efforts to modernise competition policy during this mandate, and emphasises that competition, competitiveness, innovation and resilience should no longer be viewed as competing objectives. Rather, they must be pursued in a coherent and mutually reinforcing manner.

A State Aid Framework that Supports Industrial Transformation

A first key chapter of the opinion concerns State aid policy. The EESC welcomes the Clean Industrial Deal State Aid Framework (CISAF) as an important tool to support decarbonisation and strategic investment across Europe.

This position is fully consistent with the Committee’s previous work on the CISAF, which highlighted the need for State aid rules to become faster, simpler and better aligned with Europe’s industrial objectives. At the same time, the EESC reiterates that flexibility must not come at the expense of the integrity of the Single Market. The growing concentration of approved aid measures in a limited number of Member States remains a source of concern and requires careful monitoring.

The opinion also underlines that State aid should contribute not only to environmental objectives but also to the development of European value chains, innovation capacity, skilled employment and workforce reskilling. A successful industrial strategy requires both investment and people.

In the same spirit, the EESC strongly supports the ongoing simplification of the General Block Exemption Regulation (GBER). As highlighted in previous EESC opinions, reducing administrative burdens is essential to ensure that both public authorities and businesses, particularly SMEs, can effectively access available support instruments.

Merger Control in Support of Innovation and Growth

The second major area concerns merger control.

The EESC recognises the Commission’s strong enforcement record and the efficiency of its merger review procedures. Nevertheless, the changing global competitive landscape requires a broader and more forward-looking assessment of mergers.

Building on the Committee’s previous opinions, the EESC argues that the ongoing review of the Merger Guidelines should take greater account of innovation, long-term investment, economies of scale, industrial resilience and the ability of European companies to compete internationally. While consumer welfare remains a fundamental benchmark, the effect of mergers on competition cannot be assessed solely through short-term price effects. 

Modernising Antitrust Enforcement

The opinion also addresses the evolution of antitrust enforcement.

Digital markets are characterised by speed, network effects and rapidly changing business models. To remain effective, competition authorities must be able to act swiftly when harmful practices emerge. The EESC therefore supports efforts to modernise competition procedures and welcomes the Commission’s increased use of tools such as interim measures where appropriate.

At the same time, enforcement must continue to respect the principles of proportionality, legal certainty and due process. Businesses need clear and predictable rules, particularly when responding to complex information requests and investigations.

The objective should be a competition policy that is both effective and business-friendly: robust against anti-competitive practices while avoiding unnecessary administrative burdens.

Addressing New Competitive Challenges

The EESC further examines the implementation of the Foreign Subsidies Regulation and the Digital Markets Act.

Both instruments respond to genuine concerns about fairness and contestability in the Single Market. Foreign subsidies may distort competition, while digital gatekeepers can exercise significant market power in key segments of the digital economy.

However, effective implementation requires transparency, predictability and legal certainty. The Committee therefore calls for greater clarity regarding enforcement practices and a continued dialogue between regulators and market participants. Regulatory effectiveness and investor confidence are mutually dependent.

Equipping Competition Policy for the Future

Finally, the opinion stresses the growing demands placed on the European Commission, and particularly on DG Competition.

The expansion of the competition policy toolbox over recent years has been substantial. Traditional antitrust, merger control and State aid enforcement now coexist with new responsibilities under the Digital Markets Act and the Foreign Subsidies Regulation. Ensuring effective enforcement therefore requires adequate human, financial and technological resources. A modern competition policy can only succeed if the institutions responsible for implementing it have the capacity to act swiftly, consistently and effectively.

By Isabel YGLESIAS JULIÀ, EESC Employers' Group member and Rapporteur of Opinion INT/1128 Report on Competition Policy 2025.