The EU’s Foreign Subsidies Regulation European Commission scrutiny of non-EU subsidies
The EU's Foreign Subsidies Regulation came into force on 12 January 2023 and grants sweeping new powers to the European Commission to tackle harmful non-EU subsidies. It allows the Commission to scrutinise companies making certain acquisitions, engaging in public procurement and otherwise carrying out economic activities in the EU which have benefited from such non-EU subsidies. The Commission can impose fines, require redressive measures, accept commitments and impose fines of up to 10% of turnover for certain breaches. The FSR will apply from 12 July 2023 and will have an important impact for advisors on M&A and public procurement activity in the EU.
For further information in relation to this topic, please contact Alan McCarthy or any member of ALG's EU, Competition and Procurement team.
Date published: 13 March 2023