Introduction Since October 2023, the European Commission has been aggressively enforcing a revolutionary new European Union (EU) law, the Foreign Subsidies Regulation (FSR). The FSR is designed to prevent “foreign” – meaning non-EU — subsidies from distorting the EU internal market. The FSR introduced new legal concepts, in particular, the “foreign financial contribution” (FFC), and…
As the European Commission prepares for a new mandate under President Ursula von der Leyen later this year, former ECB President Mario Draghi – famous for his “whatever it takes” approach to saving the Euro – has now turned his focus to the future of EU competitiveness in the digital age. His long-awaited report, commissioned…
The EU Foreign Subsidies Regulation, or FSR, is intended to prevent or remedy distortions of the EU internal market caused by “foreign” – meaning non-EU – subsidies benefitting companies active in the EU. The FSR draws on EU merger control, State aid and trade law, but it also introduces new legal concepts and procedures not…
It was only a matter of time before the European Commission (“EC“) launched its first ever in-depth investigation of an M&A transaction under the Foreign Subsidies Regulation (“FSR“). On 10 June 2024, that time came: The EC referred the acquisition of the Czech telecom operator PPF Telecom Group B.V. (“PPF“) by the Emirates Telecommunications Group…
At the crack of dawn, the European Commission embarked on a milestone enforcement endeavor: the first unannounced inspection under the new EU Foreign Subsidies Regulation (FSR)! The European Commission, in tandem with national competition authorities, conducted its first dawn raids under the FSR at the Polish and Dutch offices of Nuctech, a Chinese company specialized…
The FSR and public procurement The primary objective of the Foreign Subsidies Regulation (FSR) is to address the influence of foreign subsidies that may distort the integrity of the EU’s internal market. This encompasses scenarios where recipients gain an unfair advantage enabling them to secure public procurement contracts within the EU at the expense of…
It is often said that one of the greatest things about watching an important character is people wondering when he is going to make his comeback. In 2019, thirteen days after the prohibition of Siemens’ proposed acquisition of Alstom was published by the European Commission, Germany and France issued a public Manifesto ‘for a European industrial…
The first months of application of the EU Foreign Subsidies Regulation (FSR) have involved a large number of notifications, lengthy and wide-ranging requests for information, and the opening of the first in-depth investigation. We take a look at the key highlights from the FSR’s opening period and practical implications for companies navigating the still quite…
The EU Foreign Subsidies Regulation took effect on 12 July 2023 to much fanfare. We take a look at the top five things PE funds need to know when considering acquisitions with a European footprint. The Foreign Subsidies Regulation (“FSR”) is the European Commission’s attempt to level the playing field for M&A deals by creating…
European Union and United States legislators are increasingly concerned about the potentially distortive effects “foreign” subsidies may have on M&A transactions. EU and US authorities are both poised to require transaction parties to provide extensive information to allow authorities to evaluate subsidies granted by other jurisdictions. How do these initiatives compare, and how will the…
