Foreign subsidies control

The EU intends to extend State aid control to the support of businesses provided by non-EU governments. This new field of law will apply across all EU Member States. We help companies to prepare for the new regulation and to assess the related business risks. The new law essentially introduces three new tools, one of which will qualify as a second merger control screen by the EU, the second of which will introduce new requirements for public procurement tenders, and the third will enable the European Commission to initiate ex-officio investigations in individual cases against third country subsidies whereby the European Commission can investigate financial contributions granted by public authorities of a non-EU country that benefit companies engaging in an economic activity in the EU, and to redress their distortive effects. 

The new law provides companies in the EU with additional options to file complaints against third country subsidies (and their recipients) that affect the EU market, and will also create new obstacles for many companies from outside the EU and will lead to additional regulatory requirements for companies, irrespective of whether they are EU headquartered.