EU may let startups claim innovation benefits in M&A if Big Tech not involved

Foo Yun Chee

Wed, April 22, 2026 astatine 10:45 AM CDT 1 min read

By Foo Yun Chee

BRUSSELS, April 22 (Reuters) - Startups claiming innovation benefits for their deals volition apt ‌secure speedy EU antitrust approval, but not if ‌Big Tech is involved, a draught revamp of merger rules owed to ​be announced successful the coming weeks shows.

The overhaul, the archetypal successful much than 2 decades, came aft telecoms operators led calls for looser merger rules to let them to ‌scale up to ⁠better vie with U.S. and Chinese rivals.

European Union antitrust regulators person responded with a projected 'innovation ⁠shield' whereby they volition not intervene successful deals involving startups oregon probe and improvement projects apt to boost competition, ​the draught ​seen by Reuters shows.

The ​shield nevertheless does not ‌cover deals wherever the acquirer is the largest subordinate successful the applicable marketplace oregon wherever the institution is labelled a gatekeeper nether the Digital Markets Act which seeks to rein successful the powerfulness of Big Tech.

The European Commission ‌document besides details innovation, sustainability, ​resilience, concern and employment arguments which ​companies tin raise, ​confirming a February Reuters report.

Commission officials and ‌experts bash not expect immoderate ​radical changes successful ​their appraisal of merger deals arsenic the rules person worked good and person proven themselves during tribunal ​challenges.

The changes volition ‌be unfastened to feedback from companies and different ​participants earlier they are adopted.

(Reporting by Foo Yun ​Chee; Editing by Alexander Smith)