Foreign Subsidies Regulation : Key Dates

• Jurisdiction: European Union
• Law Firm: Janson Baugniet
• Subject Matter: Government, Public Sector, Government Contracts, Procurement & PPP
• Author: Mr Bruno Lebrun and Candice Lecharlier
• Published date: 03 March 2023

The Foreign Subsidies Regulation ("FSR") entered into force on 12 January 2023. This new legislation regulates the competitive distortions caused by foreign subsidies and attempts to ensure a level playing field for all companies operating in the EU.

Three new rules:

• The obligation to notify to the Commission concentrations involving a financial contribution by a non-EU government where (i) the acquired company, one of the merging parties, or the joint venture generates an EU turnover of at least '500 million, and (ii) the foreign financial contribution involved is at least '50 million;

• The obligation for companies to notify the participation in public procurement procedures, where (i) the estimated contract value is at least '250 million and (ii) the foreign financial contribution involved is at least '4 million per non-EU country;

• For all other market situations, the Commission, on its own initiative, can conduct ex-officio investigations when it suspects distortive foreign subsidies. This includes the possibility to request ad-hoc notifications for concentrations and public procurement procedures below the required thresholds.

Therefore, for companies that may be involved in any of these scenarios in the near future, here are some key dates to keep in mind:

• 12 July 2023 : the FSR will start to apply as of 12 July 2023. So, companies that concluded concentrations or are engaged in public procurement procedures before 12 July 2023, do not have to notify the Commission under the FSR. This also means that, as of this date, the Commission will be able to...