EU approves new regulation on foreign subsidies
28 December 2022
The European Parliament and the Council have approved Regulation 2022/2560 on foreign subsidies distorting the internal market (“Regulation”), which the Official Journal of the European Union published on 23 December 2022. The Regulation includes a three-fold mechanism that will allow the European Commission (“Commission”) to monitor third-country subsidies granted since 12 July 2018 to companies operating in the European Union. The Regulation will not apply until 12 July 2023, giving the companies to which it applies ample time to identify which of their subsidies may come under the European Commission’s scrutiny, in particular if they plan to acquire companies or participate in public procurement procedures in the European Union (“EU”). Companies that consider that their competitors have received foreign subsidies that give them an unfair competitive advantage may also alert the Commission.