Foreign subsidies control

The EU has decided to extend the state aid control to the support of businesses provided by non-EU governments. Following the recent publication of the main EU Regulation, this new field of law is expected to come into force by this summer 2023.

We help companies to prepare for the upcoming new regulation and to assess the related business risks. The new law will introduce essentially three new tools: the first will qualify as a second screening mechanism for acquisitions financed by third country contributions (i.e., a similar yet concurrent mechanism for mergers’ control screening); the second will introduce new requirements for public tenders; and the third will enable the European Commission to initiate ex-officio investigations in individual cases against third country subsidies.

While this new arrangement will give companies within the EU more options to file complaints against third country subsidies (and their recipients), it will also induce additional regulatory requirements for companies, even for those with EU headquarters.