Impact of Belgium’s Government Agreement on the Future of Competition Law
On 31 January 2025, Belgium's Government Agreement for 2025-2029 was published, outlining the government's commitment to strengthening competition, safeguarding technological expertise, and increasing the transparency of subsidies. While these priorities are clear, further steps are needed to define their practical implementation.
Strengthening competition
A key focus will be on strengthening the Belgian Competition Authority (‘BCA’) and improving cooperation between the BCA, the Price Observatory, and the Economic Inspection. This will involve clearly defined roles and partnerships, with the possibility for thematic regulators to use the analytical capabilities of the Price Observatory. We consider that this stronger cooperation could play an important role in the BCA’s newly launched general investigation into sectoral price revision and indexation mechanisms in the Belgian economy (6 February 2025), as it is the first time that the BCA is using this general investigation tool.
The government is committed to implementing an effective competition policy that not only strengthens the competitiveness of businesses, but also enhances the well-being of citizens. By promoting more competition in different sectors, the government aims to increase purchasing power, lower prices, expand consumer choice, and improve the quality of goods and services. A new legal framework will empower the Minister for Economic Affairs to intervene in sectors where competition is insufficient or where excessive profit margins result from a gap between the price consumers pay and the quality or value of services provided. Actions will be based on objective evidence from the BCA or the Price Observatory, ensuring that decisions are data-driven and transparent. This approach is intended to promote healthy competition, encourage companies to innovate and operate more efficiently, and contribute to a higher standard of living for all citizens. The government’s competition policy will also focus on preventing market failures, tackling abuses of dominance, and ensuring a level playing field for all businesses, so that every company has an equal opportunity to compete and grow.
Safeguarding technological expertise
In addition to promoting competition, the government intends to introduce measures to protect Belgium’s technological expertise in strategic sectors. The inter-federal screening mechanism for foreign investment will be improved to ensure an intelligent and efficient process for identifying and preventing undesirable investors - those who pose a risk to national security, public order, or the public interest. The government will also review existing screening mechanisms for foreign investment in critical infrastructure and sectors, as well as technologies that could affect security and public order. The aim is to ensure efficient screening, while respecting the separation of powers and preserving the integrity of Belgium’s open economy.
Increasing the transparency of subsidies
Several initiatives are also planned to improve the management and transparency of subsidies. These include the creation of an intra-federal centre for knowledge and expertise on state aid, which will serve as a resource for federal, regional, and other administrations, while facilitating communication and cooperation with the European Commission. In addition, the government plans to create a comprehensive federal aid framework that will establish clear guidelines and uniform procedures for the granting of discretionary aid. As part of this effort, each administrative body will be required to maintain a subsidy register, which will provide the government and citizens with a transparent overview of all subsidies granted and their beneficiaries, with the long-term goal of creating an inter-federal register. The government will also advocate for a coherent and coordinated European state aid policy to support the energy transition, ensuring fair competition between Member States and a level playing field. Finally, the government will seek to strengthen the Foreign Subsidies Act to improve its effectiveness in monitoring and regulating foreign subsidies.
Taken together, these measures reflect the government’s commitment to promoting a competitive, secure, and transparent economic environment that benefits both businesses and citizens
