EU Member States give final approval to Foreign Subsidies Regulation

The European Union (EU) formally adopted the new Regulation on foreign subsidies distorting the internal market which is expected to become applicable in Q2 2023.

In essence, the Regulation partly extends the EU’s State aid prohibition to State aid provided by third countries, focusing on large public procurement procedures and merger and acquisition (M&A) transactions that take place in the EU.

Further guidance on the governance of the Regulation by the European Commission is expected soon. …