As we approach the second anniversary of the EU Foreign Subsidies Regulation (FSR), we take stock of the latest statistics and offer practical insights for private equity (PE) sponsors. Drawing on our extensive experience advising funds, we set out the key takeaways for PE investors navigating the FSR notification process. PE sponsors are the…
On 24 September 2024, the European Commission (EC) issued the long-awaited first decision (under phase II of the concentration tool) of the new Foreign Subsidies Regulation (FSR). It took another long wait of seven months, but a provisional public version of the commitment decision in the e&/PPF transaction (Case FS.100011) was published on 4 April…
With the introduction of the Foreign Subsidies Regulation (FSR), the European Union (EU) embarked on a new regulatory era. This landmark regulation aims at addressing the distortive effects of subsidies granted by foreign – non-EU – countries to companies operating within the EU, and ensuring a level playing field and fair competition across the internal…
Adopted in November 2022, the Foreign Subsidies Regulation (FSR) is the latest arrival in the EU competition toolbox. Having just celebrated its second anniversary and with a few cases under its belt, the FSR is still the object of much discussion and curiosity from practitioners and stakeholders. To contribute to this debate, an expert panel…
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…
