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ARTICLE · 26 MAY 2022

Brussels: Adoption Process For New EU Rules To Tackle Foreign Subsidies Enters Final Stage

Bird & Bird
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Exactly one year after the European Commission (EC) presented its original proposal on 5 May 2021 outlining new rules to tackle distortive foreign subsidies, the European Parliament (EP)...

European UnionAntitrust/Competition Law
Hein Hobbelen
Hein Hobbelen
Samuel Berneman
Samuel Berneman
Francine Cunningham
Francine Cunningham
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Exactly one year after the European Commission (EC) presented its original proposal on 5 May 2021 outlining new rules to tackle distortive foreign subsidies, the European Parliament (EP) and Council have adopted their respective positions on the legislation. This marks the start of the final stage of the adoption process, also known as the inter-institutional "trilogue" negotiations.

To recall, in January 2022, Bird & Bird reported how MEPs were fine-tuning of the proposed new measures. These new rules are aimed at levelling the playing field, where third-country companies benefit from subsidies which are not subject to the same "rigorous scrutiny" applied to subsidies given by EU Member States.1 This can lead to unfair advantages and a reduction in competition whereby other businesses operate under more favourable conditions and receive more support from their home government. As such, this legislation aims to tackle this inequality.

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