The EU’s rules on foreign investment are changing: Miguel Vaz & Ben Groden set out the practical steps companies must now take to comply
- Earlier this year, the EU’s Foreign Subsidies Regulation (FSR) came into force.
- The FSR imposes certain notification requirements on EU and non-EU businesses receiving third-country subsidies while operating within the EU.
- This articles reviews who the FSR applies to and what companies should do practically when faced with these changes.
On 12 January 2023, the EU’s Foreign Subsidies Regulation (FSR) came into force. The aim of the FSR is to combat distortions of competition within the internal market caused by foreign investment. The FSR Implementing Regulation, adopted on 10 July 2023, provides guidance on the procedural aspects of the FSR, filing requirements, and investigation timelines.
Under previous rules, subsidies granted by non-EU governments were not reviewed, whereas those granted by member states were heavily scrutinised. This created an uneven playing field within the internal market.
