Five years ago, the EU adopted the Foreign Direct Investment (FDI) Regulation as a key trade measure to address an increasingly complex geopolitical stage. Since it became applicable, in 2020, the number of FDI regimes in place in Europe has almost doubled (from 14 to 24), leading to an aggregate screening of over 4,000 transactions…
Introduction Earlier this year, the European Commission published a legislative proposal for a new FDI Screening Regulation. The legislative proposal builds, as noted in the Commission’s 4th Annual Report on the screening of foreign direct investments (FDI), on the experience gained by the Commission and EU Member States over the previous three years under…
Is competition law fit for purpose? Do we need better tools to make markets fair? How far should government go to ‘fix’ market structures? It’s impossible to attend an antitrust conference these days without discussing these questions under the umbrella of competition & industrial policy. From decades of broad consensus championing competitive neutrality and ‘letting…
INTRODUCTION On 24 January 2024, the European Commission (“Commission”) unveiled its proposals to reform the current EU Foreign Direct Investment Screening Regulation 2019/452 (“FDI Screening Regulation”). This forms part of a wider package of five initiatives to strengthen economic security in the EU following the “growing geopolitical tensions and profound technological shifts”.[1] Factors such as the desire to protect…
What a difference five years make. In 2019, the European Union (EU) created a modest common framework for foreign direct investment (FDI) screening, Regulation 2019/452 (the FDI Regulation), stressing that decisions on proposed investments, and even the decision whether to engage in FDI screening at all, remained with EU Member States. A pandemic and two…
The European Commission’s third annual report (the Report) on experience with Regulation 2019/452 (as amended, the FDI Regulation) reflects the growing importance of foreign direct investment (FDI) screening in the European Union (EU). Together with a staff working document, the Report provides valuable insights into the FDI Regulation’s practical impact and the Commission’s role in FDI screening…
Loosely based on the lyrics of the band Wu-Tang Clan, the Court of Justice of the European Union (CJEU) took a closer look at the acquisition of a Hungarian gravel pit in its judgment of 13 July 2023, C- 106/22, and found some rather big “stones” to turn around with regard to FDI in Europe….
In this annual review of Canadian foreign investment law, we discuss developments over the past year, including proposed amendments to the Investment Canada Act (ICA) and new government policies on the treatment of specific categories of investments. We also consider how these trends will influence enforcement in the year to come. Our central observation is…
The European Union’s (EU’s) new Foreign Subsidies Regulation (FSR), entered into force on January 12, 2023. The FSR creates a unique new quasi-antitrust regime to combat distortions of competition in the EU internal market caused by subsidies multinationals receive outside the EU. It imposes new mandatory notification and approval requirements for acquisitions of significant EU…
On 6 February 2023, the European Commission (“EC”) published the draft Implementing Regulation and notification forms (together: the “IR”) relating to the EU Foreign Subsidies Regulation (“FSR”). The EC has launched a four-week public consultation period that will allow stakeholders to comment; i.e., there may still be changes to the IR. However, it can in…
