EU Foreign Subsidies Regulation – Additional obligations for companies in mergers, acquisitions and public tenders
The current instruments - in the form of the EU merger control and EU state aid rules - do not provide sufficient protection against the specific problems and unfair competition that non-EU subsidies bring.
The new Foreign Subsidies Regulation ('FSR' or 'Regulation') entered into force on 12 January 2023. Under this Regulation, the European Commission ('Commission') has far-reaching powers to block mergers, acquisitions and joint-ventures ('mergers') and bids in public tenders and even retroactively dissolve certain mergers where foreign investment distorts competition in the EU internal market.