The European Commission has introduced the 'Competitiveness Compass' as part of its action plan aimed at strengthening the competitiveness of the EU industry. This initiative aligns with the visions outlined in the Letta and Draghi reports, highlighting competition as a key driver of productivity, investment, and innovation.

To achieve these objectives, the EU will increasingly depend on collaboration among Member States, emphasizing the importance of well-considered policy measures. The ongoing discussions about EU industry competitiveness often suggest a conflict between competition and achieving scale economies, particularly in the electronic communications sector, where strict competition rules are believed to hinder investment and innovation.

Competition authorities assert that enhancing the integration of the EU single market is essential for maximizing its potential, benefiting EU citizens. They emphasize that the goals of maintaining competition and achieving scale are not mutually exclusive. Effective competition law enforcement is crucial for ensuring fair outcomes for all market participants, with robust merger control being vital to prevent harmful market structure changes.

In the electronic communications sector, competition primarily occurs at the national level, affecting both infrastructure and services. A limited number of infrastructure providers can negatively impact service quality, network coverage, and innovation. The belief that strict competition rules lead to fragmentation and hinder investment is challenged by the argument that lax merger control can directly harm consumer welfare and stifle innovation.

National competition authorities must carefully scrutinize significant mergers within a single Member State, blocking or approving them only under conditions that adequately address competition concerns. Best practices for remedy design and implementation are based on past experiences with conditionally approved mergers, guiding future assessments.

Cross-border mergers can enhance competition and deepen the Single Market without compromising national competition. The commitment to promoting competitive markets is crucial for fair pricing, innovation, and investment across all sectors, particularly telecommunications, which is vital for industrial competitiveness.

Competition authorities will continue to advocate for the removal of unnecessary barriers to market entry and expansion, which are essential for fostering competition and economic growth. This joint statement reflects the collaboration of competition authorities from Austria, Belgium, Czechia, Ireland, Netherlands, and Portugal.