Regulation (EU) 2022/2560 on foreign subsidies distorting the internal market (the "FSR") will become applicable this year on 12 July and 12 October (for M&A notifications) respectively.
It is a major step by the EU in tackling distortions of the internal market caused by various forms of subsidies from non-EU countries. It will clearly impact large deals and public tenders, but may also reach other market situations (e.g. mergers and acquisitions not hitting notification thresholds).
We already explored the main parameters of the FSR in our Legal Insight in November 2022. However, such a ground-breaking and far-reaching piece of EU legislation affecting businesses – and especially M&A practice – across the globe merits a closer look. That's why we have prepared a special series of insights into all the relevant aspects of the FSR.
Over the next few months, we will bring you insights from a range of authors not only from the legal point of view but also from the broader economic and politic perspectives.
This series comes at an interesting and turbulent time for the FSR, as the European Commission is now preparing an implementing regulation and soft law documents elaborating on the FSR. So there will be plenty to keep an eye on. Our series strives to guide you through the latest news until the FSR comes into full effect on 12 October 2023.
Next in our series you will hear from our competition and state aid expert Hanno Wollmann on what is and what isn't a foreign subsidy. If you have any comments, suggestions or questions in the meantime, don't hesitate to contact us.
By Volker Weiss, Partner, Jan Kupcík, Attorney at law, Schoenherr