The Present and Future of Merger Control
The objective of merger control is to assess the competitive impact of transactions and, above all, to prevent the creation or strengthening of a dominant position that could hinder effective competition in a product market or a substantial part thereof. For a market economy to function optimally, competition law sets rules that, through merger control, help preserve market structures conducive to competition and ensure effective rivalry in the market.
In 2024, a total of 45 merger notifications were submitted in Estonia. The Competition Authority handled 52 cases, including 7 carried over from the previous year. Five cases were transferred to 2025. As the economy recovers, the number of mergers is expected to increase further. Data shows that, compared to neighbouring countries and other EU Member States, the number of mergers subject to prior notification based on turnover thresholds in Estonia is relatively high. In a context of limited resources, this volume presents a considerable challenge for the Competition Authority.
In Estonia, the Competition Authority reviews mergers where the combined turnover of the parties in the previous financial year exceeds 6,000,000 € and the turnover of at least two merging parties in Estonia exceeds 2,000,000 € each.
Paradoxically, like many other competition authorities, the Estonian Competition Authority is also facing a different type of challenge – how to prevent the creation or strengthening of a dominant position in transactions that are significant from an economic, consumer, or innovation standpoint but fall below the current turnover thresholds. Several countries have addressed this issue by granting their competition authorities the right to ’call in’ such transactions for review. This power exists, for example, in Latvia and Lithuania.
To address these challenges, the Competition Authority has submitted a proposal to the Ministry of Justice and Digital Affairs to revise and modernise the chapter on merger control in the Competition Act.