Theory of Benefit or Theory of Burden? Reconciling Innovation and Scale under the 2026 ...
legalblogs.wolterskluwer.com
The EU's 2026 Draft Merger Guidelines quietly reshape antitrust logic — and whether "theory of benefit" saves innovation or just gives big firms a new loophole is the fight that will define the next era of competition law.
Efficiency DefenceMarket Power TheoryInnovation Theory of HarmPrincipal-Agent Problem
Theory Briefing
- The European Commission's 2026 Draft Merger Guidelines formally introduce a 'theory of benefit', allowing merging firms to argue scale drives innovation rather than kills competition.
- Critics warn the new framework risks becoming a burden on regulators, shifting the evidentiary weight in ways that favour large incumbents over challenger firms.
- The tension mirrors a classic efficiency defence debate — whether consolidation genuinely produces consumer gains or simply dresses up market power in the language of progress.