ARTICLE · 22 MARCH 2024

Public Procurement - Horizon Scanner: Infrastructure, Construction, Energy, March 2024

Arthur Cox

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The Commission is conducting a first in-depth investigation in a public procurement process pursuant to its powers under the Foreign Subsidies Regulation.

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Foreign Subsidies Regulation

The Commission is conducting a first in-depth investigation in a public procurement process pursuant to its powers under the Foreign Subsidies Regulation. Under the Regulation, companies must notify their tenders in the EU when the estimated value of the contract exceeds €250 million, and when the company was granted at least €4 million in foreign financial contributions from a third country in the three years before the notification.

This investigation follows notification by a subsidiary of a Chinese state-owned train manufacturer in the context of a procurement process in Bulgaria. The Commission will assess whether the subsidy means the company can submit an unduly advantageous offer, thus causing a distortion in the internal market. The Commission may then: (i) accept commitments by the company if they remedy the distortion, (ii) prohibit the award of the contract, or (iii) issue a no-objection decision. Further

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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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