Commission publishes first FSR decision
The Commission has published for the first time a decision under the Foreign Subsidies Regulation (FSR), approving the acquisition of PPF Telecom Group B.V. by UAE-based e& (Emirates Telecommunications Group Company P.J.S.C.). The decision is subject to binding commitments and can be found under FS.100011.
The notified transaction, valued at EUR 2.15 billion, concerns telecommunications operations in Hungary, Bulgaria, Serbia and Slovakia.
Following an in-depth investigation, the Commission identified a range of foreign financial contributions, including state-backed loans, direct financial grants, and a privileged insolvency regime. The Commission considered the term loan to reflect market conditions but found that the exemption from ordinary UAE bankruptcy law effectively amounted to an unlimited State guarantee, constituting a foreign subsidy “most likely to distort the internal market” within the meaning of Article 5(1)(b) FSR.
e& submitted a package of structural and behavioural commitments, which were subjected to a market test and considered sufficient to address the identified distortions.
As a result, the Commission adopted a decision with commitments pursuant to Article 11(3) FSR, confirming that – subject to full compliance – the foreign subsidies no longer distort the internal market.
For more information, see the decision.