The Council adopts the EU Regulation to control distortive foreign subsidies

On 28 November 2022, the EU Council gave its final approval to the new Regulation on foreign subsidies distorting the EU internal market and is due to apply by mid-2023. 

The new Regulation is part of the EU industrial strategy aiming to create “a model of open strategic autonomy” by, among others, avoiding unfair and abusive practices in the EU internal market:

 “The new measures will empower the EU to investigate and prevent the unfair practices supported by some non-EU countries. This will allow the EU to ensure fair competition and level playing field for all companies”. (Jozef Síkela, Czech Minister for Industry and Trade)

Companies would be well advised to identify whether they benefited from foreign subsidies in the past. 

If they do not run this exercise, competitors may do it for them as ex-post controls are an option available in the Regulation…

Read the full article written in English.