Foreign Subsidies Regulation: first review of the implementation and enforcement
The objective of the Foreign Subsidies Regulation (FSR) adopted in December 2022 is to allow the Commission to identify, assess, and where necessary redress distortive foreign subsidies.
According to the first report reviewing implementation and enforcement of the FSR since it entered into force, the Commission received 273 formal notifications of concentrations of which around 97% were closed after preliminary review. Regarding submissions in public procurement procedures, the Commission received 5150 submissions from economic operators. Of these cases, the Commission opened four in-depth investigations, one of which resulted in a final decision with commitments while three cases were closed following the withdrawal of the operators from the public procurement procedures. In addition, the Commission has opened two in-depth ex officio investigations.
The review of the first three years of FSR enforcement has shown that the instrument is fit for purpose to address distortions in the internal market caused by foreign subsidies.
To address concerns expressed by stakeholders, in particular regarding the administrative burden of data collection and monitoring or reporting obligations, the Commission will launch initiatives to make some targeted adjustments to the FSR procedural framework. These adjustments may include, in particular, increasing the turnover notification threshold through a delegated act or a simplified notification possibility for specific cases or Foreign Financial Contributions (FFCs) under the concentration chapter and under the public procurement chapter, introducing simplifications and clarifications in the forms used for notifications and declarations as well as in reporting.
The draft targeted adjustments should be published in the autumn, giving stakeholders the possibility to submit comments. Based on the feedback and any additional evidence gathered, the Commission will adopt the targeted adjustments in 2027.
For more information, see the Commission’s PR.