The EU Foreign Subsidies Regulation - European Commission oversight of non-EU subsidies
On 30 June 2022, the Council and the European Parliament reached a provisional political agreement on the regulation on foreign subsidies distorting the EU’s internal market (Regulation). The Regulation will allow the European Commission (Commission) to review subsidies granted by non-EU countries to companies and industries.
The Regulation due to come into force in mid-2023, will represent an additional and complex regulatory hurdle for all parties (whether or not based in the EU) before they can:
- complete certain acquisitions in the EU, in addition to the pre-existing EU and Member State merger control and foreign direct investment (FDI) requirements
- participate in certain public procurement tenders
There will also be a general market investigation tool allowing the Commission to review smaller acquisitions and public procurement processes as well as other situations involving potentially distortive foreign subsidies.
The following A&L Goodbody briefing paper looks at the practical implications of the Regulation in more detail.
For more information on this topic, please contact Alan McCarthy (Partner) or any member of A&L Goodbody's EU, Competition & Procurement team.
Date published: 25 July 2022