Foreign Subsidies Under The European Commission's Microscope

Summary

The European Commission's June 2020 White Paper outlined its initial plans for a subsidies regime. The Commission has now developed these plans in its proposals for a new regulation. If approved, the regulation would establish three broad tools through which the Commission could regulate foreign subsidies within the EU - including the mandatory notification of certain M&A transactions and public procurement bids.

The debate surrounding companies active in the EU that receive foreign state subsidies has been unfolding for some time. Back in October 2020, we highlighted that the European Commission was planning to establish a new regulatory regime to control the impact of subsidies given by non-EU governments to companies doing business in Europe.