EU Foreign Subsidies Regime: Publication Of Final Implementing Regulation

The EU's Foreign Subsidies Regulation (FSR) was adopted in late 2022. Its stated aim is to combat the effects of competitive distortions caused by foreign subsidies in the EU internal market and thereby level the playing field for EU companies, which are generally subject to strict EU State aid/subsidy rules (see our earlier client alert). 

The FSR started to apply beginning July 12, 2023. If companies meet the applicable thresholds, they will have to submit FSR notifications for M&A deals and for public procurement procedures in which they participate, as of October 12, 2023. This notification obligation also covers:

• M&A deals signed after July 12, 2023, that have not closed before October 12, 2023. (Pre-notification is already possible as of July 12, 2023.)