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ARTICLE · 10 JANUARY 2023

The EU's Foreign Subsidies Regulation Gets Adopted

Steptoe LLP
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Interinstitutional negotiations on the Commission's proposal started in May this year, after the Council and the Parliament each adopted their positions.

European UnionGovernment, Public Sector
Renato Antonini
Renato Antonini
Eva Monard
Eva Monard
Charles Whiddington
Charles Whiddington
Elli Zachari
Elli Zachari
Byron Maniatis
Byron Maniatis
Yongqing Bao
Yongqing Bao

On 14 December 2022, the Council of the EU ("Council") and the European Parliament ("Parliament") adopted Regulation (EU) 2022/2560 of the European Parliament and of the Council on foreign subsidies distorting the internal market (the "Foreign Subsidies Regulation" or "FSR"), which was published in the EU's Official Journal on 23 December 2022. The FSR gives the European Commission ("Commission") substantial new powers to investigate "financial contributions" granted by non-EU governments to companies operating in the EU and, where necessary, take measures to redress their distortive effects. Specifically, the Commission will be able to conduct such investigations through three new tools: two notification-based tools to investigate concentrations and bids in public procurements above certain thresholds and a general tool to investigate all other market situations and lower-value mergers and public procurement procedures.

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