The EU Foreign Subsidies Regulation (FSR) entered into force on 12 January 2023 and will apply from 12 July 2023 when the European Commission will be able to begin ex officio investigations. Indeed, the Commission has been granted a wide range of investigative powers under the FSR.
From 12 October 2023, the mandatory notification requirement for mergers/acquisitions/joint ventures and public procurement above certain respective thresholds will apply to transactions due to be completed/contracts awarded as and from that date. Moreover, a notification to the Commission will result in a standstill obligation until clearance is granted.
In February 2023, the Commission published the draft foreign subsidies Implementing Regulation containing the procedural rules for submitting and reviewing notifications under the FSR. This draft was criticised as both excessively broad in scope and burdensome by many respondents to a public consultation. As adoption of the Implementing Regulation is expected imminently, we will soon learn whether these criticisms have had an impact.
Contributed by Róisín Casey