Knowledge

As a way of marking the first 100 days of the notification obligation under the Regulation on foreign subsidies that distort the internal market, the Directorate General for Competition released very relevant information on the state of progress and trends in the implementation of the Regulation.

Regarding the initial implementation of the Regulation, we point out that:

• As of March 1, there is a new Directorate with 3 teams dedicated to carrying out the procedures resulting from the application of the Regulation;
• The number of notifications resulting from the application of the Regulation has far exceeded the expectations of the entities responsible;
• A significant percentage of the companies that have notified operations are investment funds;
• The Commission has already launched the first in-depth investigation (inquiry) into a public procurement procedure launched by a Ministry of a Member State concerning a Chinese company;
• The notification required by the Regulation has been, in the vast majority of cases, carried out in parallel with the merger control notifications;
• About half of the notifications made were also notified in the light of the Foreign Direct Investment analysis, either at the Commission or in the member states.

To mark the first 100 days of the notification obligation, TELLES has prepared a Practical Guide to help all companies and public sector entities interested in learning more about this new European law. Through this Guide, we answer questions such as: What are Foreign Subsidies? Which sectors of activity does the FSR apply to? How can a company prepare for its implementation? What should a contracting authority consider in its public procurement procedures?

To find out more about this legislation which aims to combat distortions in the internal market caused by subsidies granted by foreign states, and to access our Practical Guide, fill in the form available here.