The New EU Foreign Subsidies Regulation: Overview and Practical Impact for Companies

By James Campbell, Steven Farmer and Iris Karaman

The EU Foreign Subsidies Regulation (“FSR”) entered into force on 12 January 2023 and will start to apply from 12 July 2023. Under the FSR, the European Commission (“Commission”) will have powers to intervene against distortions to competition in the EU internal market caused by companies active in the EU that benefit from foreign subsidies. A new notification regime will be introduced for certain M&A transactions and public tenders that is independent from current EU/national merger control and foreign direct investment notification requirements, and the Commission will have powers to conduct investigations into potentially distorting foreign subsidies.

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glenn.richards@pillsburylaw.com

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