Notification Of Foreign Subsidies In Connection With Public Procurement Procedures

The Regulation on foreign subsidies distorting competition in the internal market establishes a notification obligation to the European Commission in connection with certain public procurement procedures. Although the notification obligation has applied since 2023, many contracting authorities and companies participating in public procurement procedures are still not aware of the notification obligation or what a notification obligation entails. Both contracting authorities and companies participating in public procurement procedures should, however, be mindful of the existence of any notification obligation. Overlooking a notification obligation may have serious implications and result in fines of up to 10% of a company's total turnover in the previous financial year. In this article, we summarise the main features of the notification obligation and process before the European Commission.