The recent appointment of Anthony Whelan as head of competition policy at the European Commission marks an important step in a strategic debate about the future of the European economy.
A close ally of Commission President Ursula von der Leyen, Whelan takes office at a time when Brussels is considering whether to relax its traditionally strict competition rules—long regarded as a cornerstone of the EU’s internal market.
A potential turning point in EU doctrine
The Directorate-General for Competition (DG Comp) is one of the EU’s most powerful bodies: it sanctions cartels, oversees state aid, and can block mergers that threaten market competition. Until now, its policy has been guided by a core principle: preserving an open, competitive market that benefits consumers.
However, faced with sluggish economic growth and the rising dominance of major American and Chinese firms, the Commission is now considering “modernizing” its rules, particularly on mergers and acquisitions. The stated goal is to enable the emergence of “European champions” capable of competing on a global scale.
A response to global competition
Large European companies support this shift, arguing that current rules hinder their expansion. In their view, only companies with sufficient scale can invest heavily, innovate, and effectively compete with giants such as Google and Meta, as well as their Chinese counterparts.
This perspective is also backed by some political leaders, particularly in France and Germany, who see regulatory flexibility as a way to strengthen Europe’s economic sovereignty. Inspired in part by the recommendations of Mario Draghi, this approach prioritizes investment capacity and innovation—even if it means accepting reduced competition in certain markets.
Risks for the internal market
That said, the strategy faces strong criticism. Several member states, especially smaller ones, fear that loosening the rules would mainly benefit larger economies that already host major corporations and have the fiscal capacity to support them.
Critics also warn of risks for consumers: increased market concentration could reduce choice, raise prices, and weaken incentives to innovate. Former competition officials such as Olivier Guersent caution that the debate risks being driven by large corporations seeking greater market power rather than broader economic benefits.
A key issue: market fragmentation
Beyond merger policy, a structural challenge remains: the fragmentation of the European internal market. Despite the existence of a single market, numerous national regulations still limit cross-border expansion.
Some economists argue that Europe should first deepen market integration before loosening competition rules. Without a truly unified market, the creation of large European firms could exacerbate imbalances rather than enhance overall competitiveness.
Conclusion
The appointment of Anthony Whelan reflects a political willingness to steer EU competition policy toward greater flexibility. While this shift could strengthen European firms’ ability to compete with American and Chinese rivals, it also carries significant risks for the balance of the internal market.
The EU’s challenge will be to strike the right balance between building economic power and preserving fair competition—both essential to the sustainability of its economic model.