Foreign subsidies regulation: increased monitoring of large
public tenders and mergers and acquisitions.
On July 12, the main provisions of the EU Regulation 2022/2560
on Foreign Subsidies Distorting the Internal Market (hereinafter
"The Regulation") entered into force. The Regulation
provides the European Commission ("the Commission") with
the necessary tools to take action against subsidies received by
companies from non-EU governments that may have a negative impact
on the European internal market.
Definition of a foreign subsidy
First, it is important to explain how an "foreign
subsidy" and a "financial contribution" are defined
in the Regulation, because these definitions are used to determine
when the monitoring instruments apply that have been made available
to the Commission. Under the Regulation, a foreign subsidy exists
if the following four conditions are met:
