EU Commission Publishes Final Guidelines On The Application Of EU Foreign Subsidies Regulation (FSR)

In brief

What happened?

On 9 January 2026, the European Commission published its final guidelines (the 'Guidelines') on the application of certain provisions of Regulation (EU) 2022/2560 on foreign subsidies distorting the internal market (the 'EU FSR') and its accompanying Implementing Regulation. The updated Guidelines include several additions, amendments, and clarifications to the 2025 draft.

Why is it relevant?

The Guidelines are based on the EU legislative framework designed to address distortions caused by subsidies, including a wide range of direct and indirect tax credits and incentives from non‑EU countries, within the objective of preserving the proper functioning of the internal market and ensure a level playing field.