According to the EU Foreign Subsidies Regulation (FSR), as of 12 October 2023 all companies operating in the EU must notify concentrations and participations in public procurement procedures which meet certain thresholds where such companies have received foreign subsidies (FS) i.e., subsidies from a third country.
Under these new rules companies may be made subject to interim measures, redressive measures, requests for information and inspections as well as be fined up to 10% of their turnover.
In this brief guide, we explain:
- When a company must notify FS
- What triggers the obligation to notify
- How to identify a subsidy
- When a subsidy is granted by a third country
- The procedure for notification, and
- The powers of the European Commission.
The aim of this guide is to identify potential risks, help you steer clear of common pitfalls, and recommend best practices for navigating the new EU foreign subsidy control system effectively.
Each section of the document addresses some of the main points that you and your organisation should know about the FSR.
To receive further information or guidance on these or any other questions related to the FSR, do not hesitate to contact us.
For further information, please contact:
Jose Rivas, Partner, Bird & Bird