EU FSR

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This Overview signposts key materials on the EU Foreign Subsidies Regulation (FSR), with links to primary legislation, guidance and tools. The FSR - Regulation (EU) 2022/2560, supported by the 2023 Implementing Regulation - creates a new competition instrument enabling the European Commission to address distortions in the internal market caused by subsidies granted by non‑EU states. It complements EU State aid control, merger control and public procurement rules.

Practitioners should understand: the scope of “foreign financial contributions”, the assessment of benefit and selectivity, and the indicators of distortion; the mandatory notification regimes for concentrations and certain large procurement procedures, including the thresholds (EU turnover and foreign financial contributions for deals; contract value and contributions for tenders), standstill/no‑award obligations, and the dedicated forms (FS‑CO and FS‑PP); the Commission’s investigative powers (requests for information, interviews and inspections), case timelines (Phase I/Phase II for deals; preliminary/in‑depth in procurement) and stop‑the‑clock; outcomes ranging from no‑objection to commitments, redressive measures or prohibition; and exposure to significant fines and periodic penalty payments for procedural breaches.

The Overview covers application dates (general provisions from July 2023; notification duties since October 2023), interaction with EU merger control and...

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