The EU’s Foreign Subsidies Regulation (FSR) gives the European Commission (EC) broad powers to control subsidies from non-EU countries, complementing the EU’s longstanding state aid regime that deals with subsidies from EU Member States.
Under the FSR:
If the EC finds that foreign subsidies granted to a company distort the EU’s internal market, it can require commitments to remedy the situation, prohibit the transaction or the public procurement award, or impose redressive measures such as repayment of the subsidy.
The notification requirement kicked in on October 12, 2023. It covers transactions signed or bids submitted on or after July 12, 2023, and not completed as of October 12, 2023.
View the fact sheet here.