Creating a level playing field – The EU’S new foreign subsidies regulation
Within the European Union (EU), subsidies granted to companies by EU Member States are subject to tight control by the European Commission to ensure that such government support does not distort competition. However, EU state aid law is only applicable to EU Member States and does not apply to subsidies granted by non-EU-countries (foreign subsidies). To close this enforcement gap, the EU has now adopted its new Regulation (EU) 2022/2560 on Foreign Subsidies Distorting the Internal Market (EU Foreign Subsidies Regulation or FSR).
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