Julien Malizard spoke at the Nasse seminar, organised jointly by the Directorate-General of the Treasury and the Competition Authority on 22 October 2026 in Paris, on the topic of «Competition issues in the defence sector»
Alongside Jérôme Philippe, a partner at Freshfields, and with Juliette Théry, a member of the Arcom board, acting as moderator, Julien Malizard outlined the specific economic characteristics of the defence markets and the industrial transformations currently under way. His presentation centred on three main issues:
- Historically concentrated markets, facing the emergence of the ‘New Defence’. The defence industry is characterised by a high degree of industrial concentration, significant barriers to entry and a dominant role played by the state, which acts as both a customer and a regulator. However, the emergence of the New Defence, based on less complex equipment, shorter innovation cycles and larger-scale production, could alter market structures and intensify competitive dynamics.
- Value chains undergoing transformation. The traditional industrial model, structured around large prime contractors, leaves relatively little scope for competition in end-products. Competition is more likely to take place in the areas of components and subsystems. Furthermore, the growing integration of digital technologies raises the question of the future distribution of value between platforms, software and data. These changes also present new challenges in terms of financing and demand visibility, particularly for SMEs and mid-cap companies.
- The challenges of European integration of defence markets. The fragmentation of national markets limits economies of scale and the competitiveness of European industry. Greater integration could generate substantial economic gains, but this requires overcoming three major obstacles: the harmonisation of operational requirements and procurement schedules, industrial coordination that goes beyond the logic of ‘fair return’, and sustained political support from Member States. The current rise in military spending does not, therefore, in itself guarantee greater integration of the European defence industry.
