Impact of mergers reviewed by the Commission on markups and innovation

The European Commission's Directorate-General for Competition (DG COMP) is set to issue a procurement tender for specialized economic research services focused on analyzing the effects of mergers reviewed by the Commission on market markups and innovation. This is a service contract rather than a grant, targeted at larger organizations with substantial research capabilities such as research institutes, universities, and consulting firms. The planned duration of the contract is 11 months, and the opportunity aligns with the Commission’s aim to better understand how different types of merger procedures impact both merging and non-merging companies.

Interested applicants can participate individually or in consortiums, as there are no explicit restrictions on consortium formation. The contract aims to build upon existing research, specifically examining how mergers influence pricing strategies and innovation activities, including patenting and R&D investment.

The deadline for expressing interest in this tender is September 12, 2025, with the publication of the call for tenders set for June 18, 2025. The anticipated date for the launch of the negotiated procedure is September 16, 2025. Though the exact funding amount is not specified, it is described as a middle or low value contract. Funding will be provided as compensation for the delivery of specific research services, with no co-funding required.

This procurement represents an opportunity for organizations with expertise in economic analysis, particularly in competition policy and merger evaluation, to contribute to a significant study that will inform future EU competition policy and decision-making. The analyses will address various merger procedures and their ramifications on market dynamics, thereby aiding in the development of evidence-based competition strategies within the EU. Interested parties are encouraged to monitor the EU Funding & Tenders Portal for more details as the launch date approaches.

This is a publication announcing the European Commission, DG COMP's intention to publish a future negotiated low or middle value procedure. It is not a call for tenders. The procedure identifier is EC-COMP/2025/MVP/0044-EXA.

The description of the planned call for tenders is as follows: DG COMP is working on a follow-up to the comprehensive 2024 report: “Protecting competition in a changing world: Evidence on the evolution of competition in the EU during the past 25 years”. This contribution to the new report builds on prior work by Stiebale & Szücs (2022), who examine ex-post changes in the markups of non-merging rivals when a merger is concluded, in order to disentangle (i) changes in markups due to reduced costs resulting from merger efficiencies which are presumed only present in the merging parties from (ii) changes due to higher market power, which would allow non-merging rivals to increase their markups as well. The present action expands on this work by discerning between ex-post markup changes of merging and non-merging parties following different types of merger procedure: simplified procedures, phase I investigations (with/without remedy) and phase II investigations (with/without remedy). In addition, it aims to examine ex-post changes in innovation activity of merging and non-merging parties, as measured by e.g. levels of patenting or R&D investment. The idea behind this analysis would be to assess the pervasiveness of mergers leading to higher (or lower) innovation activity on behalf of the merging parties, and the corresponding reaction of non-merging rivals to increase (or decrease) their innovation activity (cf. strategic substitutes vs. complements).

The procedure type is a planned negotiated procedure for a middle/low value contract. The lead contracting authority is the European Commission, DG COMP Competition. The main classification (CPV) code is 79311410 Economic impact assessment. The nature of the contract is for services. The maximum contract duration is 11 months. There is no framework agreement.

The start date for expression of interest is 2025-06-18 Europe/Brussels. The deadline for expression of interest is 13/09/2025 05:59 Europe/Brussels. The indicative date of launch of the negotiated procedure is 2025-09-16 Europe/Brussels.

The method of expression of interest is electronic. To express interest, use the "Express interest" link. Submissions must be sent exclusively at the address for submission given.

A frequently asked question is: Where can I find the procurement documents for calls for tenders with ‘ExA' in the reference? The answer is: References that feature an ‘ExA’ are not calls for tenders. They are a publication announcing the contracting authority’s intent to launch in the future a low or middle negotiated procedure. This was published on 03/10/2024 17:32.

In summary, the European Commission's DG COMP is planning a negotiated procedure for a middle or low value contract. This contract will involve a study on the impact of mergers reviewed by the Commission on markups and innovation. The study will build upon previous research to analyze how mergers affect the markups and innovation activities of both merging and non-merging companies, considering different types of merger procedures. The goal is to understand whether mergers generally lead to increased or decreased innovation and how competitors react. The expression of interest phase begins in June 2025, with the negotiated procedure expected to launch in September 2025. Interested parties should express their interest electronically through the provided link. It is important to note that this announcement is not a call for tenders but a preliminary notification of a future opportunity.

Eligible Applicant Types: The information provided does not explicitly state the eligible applicant types. However, given the nature of the contract as a service contract for economic impact assessment related to mergers and innovation, it is likely that eligible applicants could include research institutes, universities, consulting firms, and other organizations with expertise in economics, competition law, and innovation studies. The absence of explicit limitations suggests that SMEs and large enterprises with relevant expertise could also be eligible.

Funding Type: The funding type is a service contract, specifically a planned negotiated procedure for a middle/low value contract. This implies a procurement process where the contracting authority (European Commission, DG COMP) will negotiate the terms of the contract with selected potential service providers.

Consortium Requirement: The information does not explicitly state whether a consortium is required or if a single applicant is sufficient. It is possible that both single applicants and consortia could be eligible, depending on the specific requirements outlined in the future call for tenders.

Beneficiary Scope (Geographic Eligibility): The information does not explicitly define geographic eligibility. However, given that the contracting authority is the European Commission, it is highly likely that the primary geographic eligibility will be for entities located within the EU. It is possible that entities from EEA countries or EU candidate countries may also be eligible, but this would need to be confirmed in the official call for tenders.

Target Sector: The target sector is primarily related to competition, economics, and innovation. Specifically, the program targets the assessment of the impact of mergers on market markups and innovation activity. This falls under the broader category of economic impact assessment and competition policy.

Mentioned Countries: No specific countries are mentioned. The relevant region is the EU, as the contracting authority is the European Commission.

Project Stage: The project stage is focused on research and analysis, specifically ex-post analysis of the impact of mergers. This suggests a project stage that involves data collection, econometric analysis, and report writing, rather than the development of new technologies or products.

Funding Amount: The funding amount is described as a "middle/low value contract." While the exact amount is not specified, this suggests a funding range that is likely below €200k, and possibly even under €50k, but this is speculative. The actual value will be defined in the future call for tenders.

Application Type: The application type is a planned negotiated procedure. This means that after the expression of interest phase, the contracting authority will select a limited number of candidates to invite to submit a full proposal, which will then be negotiated.

Nature of Support: The beneficiaries will receive money in exchange for providing services, specifically conducting an economic impact assessment.

Application Stages: The application process will involve at least two stages: an expression of interest and a subsequent submission of a full proposal for those candidates who are invited to the negotiated procedure.

Success Rates: The success rates are not specified. However, given that this is a negotiated procedure, the success rate for those invited to submit a full proposal is likely to be higher than for open calls, but this is speculative.

Co-funding Requirement: The information does not explicitly state whether co-funding is required. It is unlikely that co-funding would be required for a service contract of this nature, but this would need to be confirmed in the official call for tenders.

Summary:

This is a pre-announcement for a future negotiated procedure for a low to middle value service contract from the European Commission, DG COMP. The project aims to follow up on a 2024 report about competition in a changing world. The core objective is to analyze the impact of mergers reviewed by the Commission on market markups and innovation. Specifically, the project will build upon existing research to disentangle the effects of merger efficiencies versus increased market power on markups, and to examine the impact of mergers on innovation activity, measured by patenting and R&D investment. The analysis will differentiate between various types of merger procedures (simplified, Phase I, Phase II) and consider the reactions of both merging and non-merging parties. The expected outcome is a contribution to a new report on competition in the EU. The procedure will involve an expression of interest, followed by a negotiated procedure with selected candidates. The maximum contract duration is 11 months. The start date for expression of interest is 2025-06-18, and the deadline is 2025-09-13. The indicative date for the launch of the negotiated procedure is 2025-09-16. Interested parties should monitor the EU Funding & Tenders Portal for the official call for tenders and further details.