Tomaso Duso, the chairman of the Monopoly Commission, has sharply criticized the EU Commission’s proposal to loosen guidelines governing corporate mergers. Duso questioned the prevailing argument that establishing mega-corporations through mergers is necessary for Europe to remain globally competitive, stating that while the point seems plausible at first glance, it is not supported by empirical evidence.
According to Duso, concentrating industry power among a few large conglomerates is detrimental in the long run, as it dampens innovative dynamism and fosters new forms of economic dependency. He pointed to the previously planned merger between Siemens and Alstom-a deal intended to create an undisputed European champion capable of competing with the Chinese company CRRC. This merger was ultimately prohibited by the EU Commission. Duso noted that today, both original companies have strengthened their international positions independently, and CRRC remains largely non-existent in the European market. The economist concluded that robust competition within Europe does not restrict, but rather promotes, international competitiveness.
Furthermore, Duso raised serious concerns about the potential misuse of mergers. While companies might justify future consolidations based on anticipated cost savings, he argued that these savings rarely translate into benefits for customers. He warned that the risk of passing cost benefits on to consumers is a genuine danger. Increased market concentration diminishes the competitive pressure that drives companies to lower prices. In reality, Duso observed that the promised synergies often materialize through significant job cuts, leaving consumers with no tangible benefits. Consequently, Duso demanded that corporations must provide solid, concrete proof-complete with genuine investment plans and empirical evidence-demonstrating how profits will reach the consumer, rather than relying on abstract commitments on paper.