Foreign Subsidies Regulation Guidelines published
The Commission has published the Foreign Subsidies Regulation (FSR) Guidelines to increase transparency and predictability for companies operating in the EU. These Guidelines clarify key concepts, including how the Commission assesses whether foreign subsidies distort competition (Article 4(1) FSR), how it balances any positive effects against distortive impacts, and its powers to request prior notification of below-threshold cases.
The Guidelines also provide guidance on evaluating distortions in public procurement (Article 27 FSR), explaining how the Commission will determine if a foreign subsidy has given an operator an undue advantage in tenders.
Furthermore, the Guidelines outline the Commission’s balancing test (Article 6 FSR), which considers only the positive effects directly linked to a foreign subsidy and weighs them against the severity of distortions. They also detail the use of the call-in mechanism (Articles 21(5) and 29(8) FSR), allowing the Commission to review certain concentrations or public procurement procedures where foreign subsidies may have influenced competition, while introducing safe harbours for low-value procedures, small subsidies, or extraordinary circumstances.
Overall, the Guidelines aim to give companies clarity on compliance and reinforce fair competition in the EU internal market.
For more information, see the Commission’s PR.