Opening the window for merger policy: What drives a reform? Bruges Political Research Papers 82/2020.

Nayberg, Judith (2020) Opening the window for merger policy: What drives a reform? Bruges Political Research Papers 82/2020. [Policy Paper]

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Abstract

A lively debate on reforming merger control policy is currently happening. Stakeholders disagree on the need for a reform to take place and the scope of this potential reform. The debate pits the advocates of a strong European Industrial Policy in the context of globalisation against the defenders of a rigid competition law capable enabling the Union to cope with the rise of new technologies in our digitalised area. This research shows that the European Commission, even if it is a key actor, is not the only policy entrepreneur. The degree of influence of each actor is analysed through a comparison between the 2004 reform and the ongoing discussion on the future of the European Communities Merger Regulation using the multiple streams framework. The role of three different actors is studied to answer this question: the Member States, the economic stakeholders and the experts, and the European Court of Justice. It emerges from the study that a policy change cannot occur without the support of most of the stakeholders involved. The wider and more uniform the coalition of policy entrepreneurs and the broader the window of opportunity, the higher the probability that this coalition will trigger and influence the policy change. The European Commission, although it remains the leading policy entrepreneur, needs the widest possible support from the actors to seize a window of opportunity and couple the three streams of the multiple streams framework. The differences between the situation in the early 2000’s and the ongoing one enable us to grasp the factors that must be met to have a policy change. The political character of the current debate and the technical aspect of the 2004 reform are crucial elements in building a coalition. The analysis highlights that the degree of influence of the economic stakeholders depends on the technical aspects of the debate.

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