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Foreign subsidies control

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The EU has extended its powers to review foreign subsidies above certain thresholds provided by non-EU governments to support national businesses in the context of merger control and public procurement. The EU Regulation on Foreign Subsidies was adopted in November 2022 and is due to apply from mid-2023. We help clients  prepare for the new regime and assess the related business risks and respective potential necessary filings. The Regulation aims to bring about a level playing field vis a vis the State aid regime in Europe. and introduces three new tools, one which will qualify as a second merger control screen by the EU, a second which will introduce new requirements for public tenders, and a third that will enable the European Commission to initiate ex-officio investigations in individual cases regarding third country subsidies. 

The Regulation essentially provides companies within the EU with more options to file complaints against third country subsidies (and their recipients), that effect the EU market. It also creates new obstacles for many companies from outside the EU wishing to make acquisitions or compete in European public procurement tenders, and will inevitably lead to additional regulatory review requirements and filings.