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 any member of ALG's EU, Competition and Procurement team.
Date published: 13 March 2023