The European competition authorities have issued a statement highlighting the need to strengthen the competitiveness of the EU industry as a vital component of its social market economy. The recent 'Competitiveness Compass' from the European Commission outlines an action plan aimed at realizing the vision for Europe, as discussed in the Letta and Draghi reports. This plan underscores the critical role of competition in driving productivity, investment, and innovation.

To achieve these objectives, the EU must leverage the collective strengths of its Member States, fostering collaboration to pursue shared goals. The authorities acknowledge the ongoing debate regarding the balance between competition and the realization of scale economies, particularly in the electronic communications sector. They argue that the notion of strict competition rules hindering investment and innovation is misguided.

The competition authorities assert that preserving competition and achieving scale are not mutually exclusive. They emphasize that effective competition law enforcement leads to fair outcomes for all market participants. Empirical evidence supports the necessity of robust merger control to prevent detrimental changes in market structure, which can harm the economy.

In the electronic communications sector, competition primarily occurs at the national level, with various layers of competition present. However, a limited number of infrastructure providers can weaken incentives for service quality and innovation. The authorities caution against lax merger control, which could undermine consumer welfare and investment. They stress that any harmful mergers must be scrutinized and either blocked or approved with effective remedies.

Moreover, cross-border mergers can enhance competition and deepen the Single Market without compromising national competition. The authorities remain committed to promoting competitive markets that benefit consumers and businesses alike, particularly in critical sectors like telecommunications. They advocate for the removal of unnecessary barriers to market entry and expansion, which are essential for fostering competition and economic growth.