Foreign Subsidies Control
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The EU’s regulatory framework is rapidly evolving to address new global economic dynamics, and businesses must adapt quickly to remain compliant. One of the most significant recent developments is the introduction of the Foreign Subsidies Regulation (FSR), which extends EU state aid control to include financial contributions from non-EU governments. At LawLex, we help clients understand and respond to this complex regulation, minimizing risk while maintaining strategic flexibility in cross-border operations.
Practice area
Antitrust, Competition and Trade
- Antitrust, Competition and Trade
- Abuse of dominance and economic dependence
- Competition and cartel investigations
- Compliance
- Digital markets
- Foreign investment screening
- Foreign subsidies control
- General EU law, free movement of goods, services and capital
- Horizontal agreements
- Merger Control
- Unfair trading practices (UTP)
- Private enforcement
- Regulatory
- State aid and EU subsidies
- Trade law and sanctions
- Vertical agreements
Banking & Finance
Commercial
Corporate Crime, Compliance & Forensics
Corporate / M&A
Dispute Resolution
Employment, Labour & Pensions
ESG – Environmental, social and governance
Intellectual Property
Public Procurement
Real Estate
Tax
TMC - Technology, Media & Communications
With the introduction of the Foreign Subsidies Regulation on 12 January 2023 (effective from 12 July 2023), the EU has expanded state aid control to include financial support provided by non-EU governments. LawLex helps companies navigate this evolving regulatory landscape and assess related business risks.
Under this framework, companies operating in the EU may be required to report foreign subsidies in key situations. Larger M&A transactions could face additional review akin to EU merger control, and foreign subsidies may trigger notification requirements. Participation in public procurement may also necessitate reporting, while the European Commission has the authority to conduct ex-officio investigations into potentially distortive subsidies.
Beyond compliance, the regulation serves as a trade defense mechanism, allowing businesses to challenge unfair subsidies granted to competitors. However, global companies—whether EU-based or not—must now implement robust monitoring and reporting processes to ensure full regulatory compliance.
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