What the EU does
The EU’s competition policy is designed to protect the interests of European consumers and businesses. In a competitive market, each company works hard to offer the best products and prices, and to improve both quality and choice. But when markets are not competitive, it can lead to fewer choices, lower quality and higher prices. It can even lead to job losses, lower salaries and more inequality.
That is why the European Commission safeguards competition, by monitoring
- agreements among companies which restrict competition, like cartels
- abuses of a dominant position, where a major company tries to push competitors out of the market
- mergers, when companies join forces, permanently or temporarily
- state aid, when national governments give support in any form to certain companies
- subsidies from governments outside the EU to companies active in the EU
- large digital platforms (so-called “gatekeepers”) who may use their market power in a way that harms competition
Facts about competition policy
Source: 2024 at a glance
Areas of action
Rules prohibiting abuses of market power and agreements among companies that would restrict competition
EU rules governing business mergers
EU rules on state aid
Addressing distortions caused by foreign subsidies to companies active in the EU
Keeping digital markets fair and open
Learn how EU competition policy helps drive a cleaner and fairer economy
Key achievements
- The EU’s competition rules help keep prices down and product quality high to the benefit of both consumers and businesses. This especially helps lower-income households, who are most affected when prices rise.
- It also speeds up innovation, as competitive markets push companies to improve and innovate, leading to better products and services that are available to more people - not just to the wealthy, but to everyone.
- EU competition rules create a level playing field, ensuring that all businesses can compete fairly, regardless of size. This supports broader goals such as income equality, the green and digital transitions, or access to essential services such as social housing. In short, competition rules promote fairness by making markets work for everyone—not just for the strongest players.
- Through initiatives like Important Projects of Common European Interest (IPCEIs) the EU’s competition policy boosts investment in strategic sectors, supporting innovation, green technology, and digital infrastructure. By setting and enforcing clear rules, the EU’s competition policy creates strong incentives for companies to invest and innovate. At the same time, it allows EU firms to scale up across the Single Market, helping them grow in a fair and competitive environment.
- Actions against anti-competitive behaviour like cartels or against mergers that could distort competition, bring concrete benefits.
- Based on a methodology developed by the Organization for Economic Cooperation and Development (OECD) it is estimated that between 2012 and 2023, the EU’s competition enforcement saved consumers between €12 billion to €21 billion each year.
In focus
The Foreign Subsidies Regulation (FSR) empowers the Commission to investigate and address subsidies provided by governments outside the EU which appear to distort the EU’s internal market. Such foreign subsidies give recipients an unfair advantage to acquire companies or win public procurement contracts in the EU.
This page was last reviewed on 21 October 2025