Foreign Subsidies Regulation: Rules to ensure fair and open EU markets enter into force
Today, the Foreign Subsidies Regulation (‘FSR') enters into force. This new set of rules for addressing distortions caused by foreign subsidies will allow the EU to remain open to trade and investment, while ensuring a level playing field for all companies operating in the Single Market.
The Regulation was proposed by the European Commission in May 2021 and agreed by the European Parliament and the Council in record-time, in June 2022.
The FSR applies to all economic activities in the EU: it covers concentrations (mergers and acquisitions), public procurement procedures and all other market situations. It consists of three tools, which - in the event of certain circumstances are met - will be enforced by the Commission:
- An obligation for companies to notify to the Commission concentrations involving a financial contribution by a non-EU government;
- An obligation for companies to notify to the Commission participation in public procurement procedures;
- For all other market situations, the Commission can start investigations on its own initiative.
More detailed information on the rules and regulations to be found here.