The EU Foreign Subsidies Regulation (FSR,
Regulation (EU) 2022/2560) is a tool adopted to address distortions
in the EU internal market caused by subsidies from non-EU
governments. It entered into force on 12 January 2023 and applies
from 12 July 2023. As of 12 October 2023, companies must notify
large mergers and public procurement bids that meet FSR thresholds.
The European Commission (Commission) is the sole
enforcer, the Directorate-General for Competition handles mergers
and non-procurement cases, while the Directorate-General for
Internal Market, Industry, Entrepreneurship, and SMEs covers public
tenders. The FSR parallels EU state aid law but targets foreign
subsidies – broadly defined as any “financial
contribution” by a non-EU government that confers a benefit
on a company active in the EU and that is limited, in law or in
fact, to one or more undertakings or industries. Such contributions
include direct transfers (grants, loans, equity), tax breaks
