Efficiencies are often an important source of value creation in mergers, yet their significance has historically been underappreciated by competition authorities. This suggests that competition authorities could refine their analytical framework and evidentiary standards.
On 15 January 2026, the Competition and Markets Authority issued a call for evidence regarding its approach to assessing merger efficiencies. The consultation provided an opportunity to reflect on the framework for assessing rivalry-enhancing efficiencies, the evidence base used by the CMA, and the role of dynamic efficiencies and innovation.
An Econic Partners European team of Gianmarco Calanchi, Guillaume Duquesne, Kirsten Edwards-Warren, Andy Parkinson, Rameet Sangha, Guillaume Thébaudin, Daniel Westrik, and Martin Wickens submitted a responseto the CMA’s call for evidence on merger efficiencies.
In the response, the team considers four key recommendations:
- Assess rivalry-enhancing efficiencies and competitive harm simultaneously.
- Ensure consistency in the assessment of harm, efficiencies and the counterfactual.
- Adopt a realistic evidentiary standard reflecting the evidence expected from companies that believe in the efficiencies.
- Consider dynamic efficiencies and innovation effects as rivalry-enhancing efficiencies.
The response proposes revisions to the current framework aimed at strengthening merger control by better balancing anti-competitive risks and pro-competitive efficiencies.
The views and opinions expressed in this response are those of the authors and do not necessarily reflect the views of Econic Partners or its clients. The authors are grateful to Begoña Madridejos Bravo for her invaluable support.
