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Control Beyond Competition Law: Governance, Eligibility, and Strategic Autonomy in European Defence Transactions

How does the concept of 'control' function differently under EU merger control versus EDIP eligibility rules?

Control Beyond Competition Law: Governance, Eligibility, and Strategic Autonomy in European Defence Transactions: In European defence transactions. Defence-fin…

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Original DFM publication · DFM Analysis report · 2026-03-25

In European defence transactions, the concept of control operates simultaneously in two legal regimes that share terminology but diverge in function and consequence. Under EU merger control, control is a jurisdictional construct used to determine whether a concentration exists and whether it raises competition concerns within the internal market.

Under the European Defence Industry Programme (EDIP), control functions as an eligibility filter tied to security of supply, strategic autonomy, and the integrity of Union-funded defence capabilities.

This analysis answers: How does the concept of 'control' function differently under EU merger control versus EDIP eligibility rules? Why do the same governance rights, especially veto rights, produce different legal consequences across the two regimes? How do executive management, operational perimeter and design autonomy factor into EDIP eligibility? What derogations, guarantees, FDI-screening linkages and diligence-sequencing implications arise for defence transactions?

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Cover of the report Control Beyond Competition Law: Governance, Eligibility, and Strategic Autonomy in European Defence Transactions Full sourced report Control Beyond Competition Law: Governance, Eligibility, and Strategic Autonomy in European Defence Transactions 20-page PDF · immediate download · €299 View the report →

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Original DFM analysis

Control Beyond Competition Law: Governance, Eligibility, and Strategic Autonomy in European Defence Transactions

Type DFM Analysis report
Published 2026-03-25
Access free_public

The publication details above identify the source used for this public thread.

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What is Control Beyond Competition Law: Governance, Eligibility, and Strategic Autonomy in European Defence Transactions?

Under the European Defence Industry Programme (EDIP), control functions as an eligibility filter tied to security of supply, strategic autonomy, and the integrity of Union-funded defence capabilities.

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