EU drafts antitrust update letting dominant firms cite public benefits, critics warn

The European Commission is revising its antitrust guidance on dominant-firm conduct to give companies more room to defend practices that might otherwise breach EU rules. Under the draft approach, firms with more than a 40% market share could argue their behavior is acceptable if it supports public-policy objectives such as public health, product safety, sustainability, and more resilient supply chains, including by reducing raw material use and pollution or increasing recyclable products. The Commission also says consumer cost savings would be considered when assessing alleged abuse of dominance. The changes are tied to Article 102, a tool used in recent years to impose heavy fines on companies including Apple, Google, and Microsoft for using market power to thwart rivals. EU competition chief Teresa Ribera said the update is meant to improve clarity and predictability for businesses. Academics and economists, including former Commission officials, criticized the guidance as potentially allowing “unfair dominance” by introducing presumptions that may blur the line between anti-competitive and pro-competitive conduct.