EU Foreign Subsidies Regulation

The Foreign Subsidies Regulation (EU) 2022/2560 (“FSR”) is an important additional instrument in the European Union's toolbox to address distortions caused by foreign subsidies in the European Union. Adopted on 14 December 2022 and fully applicable since 12 October 2023, the FSR seeks to level the playing field for all companies operating in the EU by ensuring that subsidies granted by non-EU states do not confer an unfair advantage.

The FSR defines a foreign subsidy as any financial contribution from a non-EU government that confers a benefit on an entity operating in the European Union. This includes grants, loans, tax incentives and other forms of support. Due to this broad definition, the regulation has the potential to include a large number of cases in its scope, which results in additional compliance requirements for companies in the EU.

Furthermore, the FSR empowers the European Commission to investigate and remedy distortions caused by foreign subsidies in the EU market through three main tools: screening of large mergers and acquisitions, as well as of large public procurement tenders, and ex officio investigations for all other market situations.

The FSR introduces comprehensive measures to address the impact of foreign subsidies in the EU market. By adopting and implementing a proactive approach to comply with the new regulation, companies can mitigate risks and respond effectively to regulatory controls. Our firm is well placed to provide expert advice and support throughout this process, ensuring that your business remains competitive and compliant in the evolving regulatory environment.

You can find the Brochure in the download area below.