PORTUGAL LAW AND PRACTICE Contributed by: Joana Torres Fernandes, José Manuel Pereira da Costa, Danielle Avidago, Javier Mateo, António Pratas Nunes, Joana Loureiro Veríssimo, Madalena Mourão and David Serras Pereira, LVP Advogados
Competition and Merger Control A significant evolution is underway in EU merger con - trol policy, which is expected to materially influence Portuguese enforcement practice. The European Commission published its draft revised Merger Guidelines on 30 April 2026. Following a public consultation period that closed on 26 June 2026— with stakeholder feedback currently being published and analysed by DG COMP—the final version of the guidelines is expected to be formally adopted in the fourth quarter of 2026. The Portuguese Competition Authority ( Autoridade da Concorrência ) is expected to align closely with this evolving EU approach. While no immediate legisla - tive change is confirmed at national level, a shift in enforcement practice is anticipated, particularly in: • The substantive assessment of mergers – driven by the newly introduced “theory of benefit”, which allows companies to justify mergers based on broader efficiencies such as supply chain resil - ience, sustainability, and security of supply, bal - anced against stricter scrutiny of dynamic efficien - cies; • The evaluation of non-price effects – placing great - er emphasis on the impact of mergers on innova - tion and investment, including the application of the new “Innovation Shield” to protect start-ups from anticompetitive acquisitions; • Market structure analysis in digital sectors and ecosystems – increasing scrutiny of killer acquisi - tions, data accumulation, and theories of harm based on market power entrenchment. This development suggests a gradual but meaningful shift in merger control enforcement, with increased scrutiny of strategic and digital markets and greater alignment with EU analytical standards. Cross-Sector Outlook Across all practice areas, three overarching trends are evident: • EU regulatory dominance – Portuguese law is increasingly shaped by directly applicable EU regu - lations rather than domestic legislative reform.
material consequences for residence planning, litiga - tion, and family reunification strategies. Employment Law No comprehensive structural reform of the Portu - guese Labour Code is expected in the short term. However, labour law is evolving through a combina - tion of national policy proposals and EU-driven regu - latory change. National Developments A proposed “labour package” is currently under dis - cussion and may introduce amendments in key areas such as: • working time organisation; • fixed-term employment contracts; • dismissal regimes; and • employee rights protections. While the final scope remains uncertain, the direction of reform suggests a recalibration of flexibility versus protection, with a gradual strengthening of employee safeguards. EU Influence and Structural Change EU-level developments continue to exert increasing influence on Portuguese employment law, particularly in areas such as: • platform work regulation; • algorithmic management and AI in employment; and • data protection in the workplace. These changes are progressively reshaping HR prac - tices, including recruitment, performance evaluation and workforce monitoring. Although the core structure of Portuguese labour law is expected to remain stable, incremental regulatory tightening and digitalisation-driven obligations are likely to reduce employer flexibility and increase com - pliance complexity.
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