The European Union announced plans to revamp its merger regulations, lifting barriers that have historically prevented the creation of large-scale European companies. The overhaul aims to enable local firms to better compete with dominant American and Chinese technology giants.

Brussels has maintained strict antitrust enforcement for decades, blocking numerous high-profile deals to protect market competition. However, the rising dominance of US firms like Alphabet and Amazon, alongside Chinese competitors such as Tencent and Huawei, has prompted EU officials to reconsider this approach.

The regulatory shift reflects growing concerns that European companies are at a disadvantage due to their smaller scale compared to well-funded global rivals. By easing merger rules, the EU hopes to foster the emergence of consolidated European champions capable of competing in key industries including technology, energy, and aerospace.

The proposed changes mark a notable departure from the EU's traditional competition policy, which has prioritized consumer protection and market fragmentation over building globally competitive enterprises.